Executive Level Compensation Procedure

The following total compensation elements will be reviewed and determined every three (3) years by the KCTCS Board of Regents.

3.1 Elements of Total Executive Compensation

Base Salary: Salary is the primary component of executive total compensation. It provides a competitive foundation for pay and reflects the role, education, unique skills and abilities, experience, and performance against established metrics. Salary increases are not an entitlement but are awarded in accordance with KCTCS Board of Regents policies and procedures.
Health Benefits: KCTCS provides 100% employer-paid family health insurance and dental insurance.
Supplemental Long Term Disability Insurance Policy: KCTCS provides additional employer paid coverage.
401(a) Qualified Pension Plan: KCTCS contributes 4% of the base annual salary in accordance with Board Policy 3.7 Retirement Plan Policies.
Executive Supplementary Allowance (ESA): Allowance paid out as it is earned over the year along with base salary to allow for compensation related to the size of the college for College Chancellors, calculated based on the Carnegie Size and Setting Classification Categories. System Executive Level Employees and ESA shall be determined based on System-wide responsibilities, System Office duties, job responsibilities, and other relevant factors.
College Size: Whether a college falls into the category of small, medium, or large depends upon a 3-year average of the Carnegie Size and Setting Classification Categories for Fall FTE enrollment where:

Small = Fall FTE enrollment of 500-1,999 students;
Medium = Fall FTE enrollment of 2,000 – 4,999 students; and
Large = Fall FTE enrollment of 5,000 – 9,999 students.

Automobile Allowance: Allowance paid out as it is earned over the year along with base salary to compensate for the use of personal vehicles for job-related travel.
Full Annual Medical Evaluation: KCTCS will reimburse the cost of an annual exam at 100% unless an annual medical examination is covered under the health care plan chosen by the executive.
Paid Vacation Leave: 22 days per year are awarded annually on July 1. If the contract begins after July 1, this amount is prorated.
Paid Sick Leave: One day per month.
Additional Compensation: Additional benefits may be negotiated for newly hired executives who are leaving prior employment outside the KCTCS system to accept a KCTCS position. These may include benefits such as reimbursement for moving and house hunting expenses, COBRA coverage until KCTCS insurance coverage is available, some travel expenses, and temporary housing.
Other Benefits Afforded to All KCTCS Employees: Executive level employees are eligible for other regular KCTCS employee benefits such as travel reimbursement, Worker's Compensation Insurance, Life Insurance, Retirement Plans and any and all other planned benefits for which the executive is eligible in accordance with KCTCS policy and procedure.

3.2 Method for Determining Executive Compensation
For executive positions, KCTCS competes and recruits for talent nationally. For some administrative roles, KCTCS may consider talent from outside the higher education demographic if the candidate possesses relevant experience and the required credentials for the role. KCTCS primarily considers comparative data for similarly qualified persons in comparable positions at similarly situated institutions.

Criteria used to determine comparison market includes:

Classification as an associate degree-granting institution or system of institutions located in the United States of America.
Private and public institutions within Kentucky and in contiguous states where KCTCS competes for talent.
Equity across similar positions and/or college size.

KCTCS participates in an annual survey of compensation among the higher education community conducted by the College and University Professional Association (CUPA). This study reflects the above criteria, and the survey data are used as the primary comparison market. The KCTCS Human Resources Compensation team is responsible for submitting data on behalf of KCTCS for this purpose and will periodically evaluate the comparison market(s), which may change from time to time.

3.3 Executive Compensation Pay Bands


Band	Position	Minimum	Market	Maximum
E1	Chief of Staff	$100,000	$140,000	$180,000
E2	Senior System Vice Presidents, System Vice Presidents, General Counsel, Small or Medium College Chancellors	$130,000	$188,500	$247,000
E3	Provost, Large College Chancellors	$169,000	$249,275	$329,550

3.4 Supplemental Compensation Pay Bands


Executive Supplementary Allowance	Minimum	Maximum
Small College	$12,000	$15,000
Medium College	$15,000	$20,000
Large College and System Office	$20,000	$30,000

3.5 Automobile Allowances

Automobile allowances range from a minimum of $10,000 to a maximum of $20,000 annually.