The University of Minnesota’s outgoing president is leaving next week with an extra $160,000, and the new guy is taking a discount to fill in for a year.
The Board of Regents on Friday approved both a separation agreement with Joan Gabel and an employment contract for Jeff Ettinger that includes a $400,000 salary.
Gabel’s current contract, inked in December 2021, called for a $160,000 retirement contribution if she was still on the job on June 30. When she announced in April she was hired as the University of Pittsburgh’s next chancellor, she said she didn’t know when her last day here would be.
Regents later negotiated a departure date of June 9, which “will allow for a more expedient transition to the interim president,” according to materials for Friday’s meeting.
Gabel also agreed to leave Eastcliff, the St. Paul mansion that houses the U’s president, no later than June 27, which is two months earlier than her contract allows. That will open up the house for Gov. Tim Walz, who was expected to move his family in July 1 while the state renovates the Governor’s Residence.
In return, regents unanimously agreed to pay Gabel’s $160,000 retirement contribution, but she won’t get a discretionary performance bonus; she was awarded a $50,000 bonus last year and could have received another $100,000 this year.
Regents quickly approved her separation agreement Friday without discussion. Besides the retirement money, she’ll be paid the value of her accrued vacation and personal time and $3,867 for one month of continued health insurance.
Ettinger contract
When regents in April were discussing a salary range to post for the interim president position, Darrin Rosha suggested $500,000, which is much less than other Big 10 presidents are paid.
But every regent except for Mike Kenyanya and James Farnsworth disagreed, partly out of concern it would limit the candidate pool. They finally decided to ask the applicants to suggest their own salary.
That move seems to have saved the U some money.
Ettinger, the former Hormel Foods CEO, will make $400,000 over his one-year interim appointment, plus $300 a month for mileage and parking expenses associated with his personal vehicle.
Ettinger also agreed to take a leave of absence from the Hormel Foundation Board of Directors while working for the U, and he recently left the boards of both Toro and Ecolab.
Ettinger’s salary and board departures contrast with Gabel’s brief service on the Securian Financial board – she left her seat under criticism from the public and some regents – and her seven-figure compensation as president, which also raised eyebrows even though her pay ranked at the bottom of the conference.
Farnsworth said last month, while the board was selecting finalists for the interim job, that he was pleased with the salary expectations Ettinger provided.
Kenyanya on Friday echoed Rosha’s previous comments that the U presidency should be a “public service” position whose rewards are as much intangible as monetary.
“I think (Ettinger leaving his board positions) reiterates his commitment to the institution and really approaching the position as a public service,” Kenyanya said. “I think there’s other things in here, including compensation, that reflect that.”
Ettinger’s first official day as interim president will be June 10, and his contract runs through June 2024. His contract allows the Board of Regents to cancel his contract without penalty with 30 days’ notice if they’ve hired a permanent president who wants to start earlier than anticipated.