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UT System Regents Approve Incentive Pay Plan

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AUSTIN (AP) — The University of Texas System has approved a new plan that lets presidents and other top leaders at its 15 campuses earn pay bonuses if graduation rates improve or donations increase.
The Board of Regents approved the plan Thursday. It was backed by System Chancellor Francisco Cigarroa and Texas Gov. Rick Perry.
Critics have raised ethical questions about financial rewards for meeting philanthropic goals. Other are concerned about whether academic standards would be intentionally weakened so that students pass courses.
But Perry spokeswoman Lucy Nashed said the plan will help encourage university presidents and top administrators to excel in their jobs — and therefore lead to better outcomes in higher education.

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