INCENTIVE PAY FOR PH' D' RESEARCHERS

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INCENTIVE PAYFOR PH. D. RESEARCHERS

• Frank Butros
• Department of Pathology
• University of Virginia Health Systems
• July 23, 2004

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DEPARTMENT OF PATHOLOGY FACULTY

• Clinical Faculty
• Basic Science Faculty

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DEPARTMENT OF PATHOLOGY FACULTY

• Majority Employed by the University, and the
  practice plan known as Health Services Foundation
  (HSF)
• Few are employees of the University only

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A - CLINICAL FACULTY

• Members of the practice plan (HSF)
• Perform research and/or are involved in
  clinical/administrative/teaching activities
• Eligible to participate in the clinical faculty
  incentive plan

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B BASIC SCIENCE FACULTY

• Perform research only
• Not eligible for the clinical faculty incentive
  plan
• Eligible for the Dept. Basic Science incentive
  plan only if tenured or tenure eligible

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CLINICAL FACULTY INCENTIVE PLAN

• Introduced in FY 01-02
• To stimulate faculty to produce income that can
  support faculty salaries
• Based on fiscal year July 1 June 30
• Two components A B
• Contingent on the availability of clinical
  reserve funds
• Must be approved by the SOM Dean

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BASIC SCIENCE INCENTIVE PLAN

• Introduced in FY 98-99
• To stimulate faculty to produce income that can
  support faculty salaries
• Based on fiscal year July 1 June 30
• Part A only
• Contingent on the availability of Dept. UVA
  reserve funds
• Must be approved by the SOM Dean

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COMPONENTS OF THE PLAN

• Part A Based on External Salary Support (ESS)
  ESS Threshold
• Part B - Based on intangible measures with
  considerations for outstanding achievements in
  clinical, teaching, research or administration
  (Clinical faculty only)

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CALCULATIONS

• Part A
• (ESS ESS Threshold)/2 x Annual Salary
• 
  
• Part B (Clinical faculty only)
• Subjective

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EXTERNAL SALARY SUPPORT (ESS)

• Extramural grants salary recovery
• Income from external consultations
• Industrial contracts
• Clinical trials
• Discretionary accounts (individual faculty
  accounts saved in practice plan)
• Patents
• Other sources

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ESS THRESHOLD

• Percentage of total salary expected from each
  faculty
• Determined by the Chair on an annual basis for
  each faculty
• Factors taken into consideration are level of
  clinical/teaching/administrative
  responsibilities, space, and start-up funds

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ESS Threshold
60
ESS Threshold
30
0
Clinician
Clinician Researcher
Basic Scientist
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MAXIMUM INCENTIVE

• Part A Maximum 20 of salary
• Part B Uncapped (clinical faculty only)
• Part A gt Part B

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ESS THRESHOLD RANGE

• 10 - 60

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EXAMPLE 1

• John Doe, Ph.D. (Microbiologist)
• Annual salary 108,900
• Fringe benefits 25,319
• Total salary cost 134,219
• ESS
  33,770 or
• 
  25.16
• ESS threshold 10

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CALCULATIONS

• Part A for John Doe, Ph.D. (Clinical Faculty)
• (25.16 10)/2 x 108,300 8,225
• Part B

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EXAMPLE 2

• Jane Doe, Ph.D. (Basic Scientist)
• Annual salary 70,000
• Fringe benefits 17,150
• Total salary cost 87,150
• ESS
  87,150
• 
  100
• ESS threshold 60

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CALCULATIONS

• Part A for Jane Doe, Ph.D.
• (100 - 60)/2 x 70,000 14,000

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EXAMPLE 2

• Doolittle, Ph.D. (Basic Scientist)
• Annual salary 100,000
• Fringe benefits 24,250
• Total salary cost 124,250
• ESS
  99,600 or
• 
  80
• ESS threshold 60

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CALCULATIONS

• Part A for Doolittle, Ph.D.
• (80 - 60) /2 x 100,000 10,000

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BENEFITS

• Salary savings to the Institution
• Increased indirect cost recovery
• Additional income to faculty
• Improved research ranking
• Positive morale
• Good for the economy
• Keeps us in business

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NEGATIVE ASPECTS OF THE PLAN

• Does not favor junior faculty
• Does not favor inactive faculty
• Few disgruntled members

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