The finance and planning committee of the University of Texas System Board of Regents today approved changes to UTIMCO's compensation program for its investment staff.
The full board is scheduled to vote on the changes Thursday.
The changes are an effort to quell criticism over $3.38 million in bonuses paid to UTIMCO staff members in February, $1.05 million of which went to CEO Bruce Zimmerman. The controversy led to the abrupt resignation of UTIMCO President Robert Rowling later that month.
In July, the University of Texas Investment Management Co., which manages the Austin-based $19.2 billion University of Texas System endowment, revised its policy to ensure that if the system loses money, bonuses will be deferred for one year. If endowment assets decline during the deferral period, bonuses will decline equal to investment performance. If the endowments improve, bonuses will rise.
If losses equal or exceed 14%, bonuses will be eliminated. Bonuses will be doubled if gains equal or exceed 29%.
The proposed policy change would defer bonuses if endowment assets fall at least 10% between the end of the fiscal year and the time that bonus payments are finalized.