During a closed executive session of the Aug. 9 CSU Board of Governors meeting, board members decided that CSU President Tony Frank and System Chancellor Joe Blake were entitled to their annual incentive based bonuses.
The move was later approved in public session.
These bonuses, which are budgeted as part of their salaries and were agreed upon in their 2009 employment contracts, give Blake and Frank incentives to meet in order to receive the entirety of their potential salary.
â€œThe term â€˜bonusâ€™ can be misleading, as this incentive-based compensation is part of the salary plan for the president and chancellor and is paid out of the general fund as with the majority of staff salaries,â€ said CSU Spokesman Brad Bohlander.
â€œRather than providing the entire salary as base pay for the positions, a portion is provided only if specific results are achieved,â€ Bohlander added.
However, members of CSU’s student government had concerns with the process of how the bonuses were awarded.
Frank was awarded $20,000 and Blake was awarded $35,000. These sums came from the CSU General Fund and were already budgeted, as part of their initial employment contracts drawn up in 2009.
â€œ[Incentive-based bonuses] are a common practice among institutions of higher education in line with competitive employment practices,â€ Bohlander said.
The Collegian received notification from CSUâ€™s Public Relations Office as of late Tuesday afternoon that Frank has since donated $10,000 of his bonus to the Larimer County Food Bank, and the remainder to a spring concert.
After taxes, Frank will pocket $13,000.
Neither he nor Joe Blake were available for comment.
See tomorrowâ€™s Collegian and Collegian.com for a more in-depth story and further updates.
News Editor Matt Miller and Content Managing Editor Allison Sylte can be reached at firstname.lastname@example.org.