The University of Texas System Board of Regents today approved changes to UTIMCO's compensation program for its investment staff, according to a news release.
The revisions come in an effort to quell criticism over $3.38 million in bonuses paid in February to staff members at the University of Texas Investment Management Co., which manages the Austin-based $19.2 billion University of Texas System endowment. Of those bonuses, $1.05 million went to CEO Bruce Zimmerman. The controversy led to the abrupt resignation of UTIMCO President Robert Rowling later that month.
Under the new plan, up to 50% of incentive pay earned by UTIMCO senior staff would be deferred for three years. The deferred amounts would then increase or decrease according to the endowments' investment performance.
If losses equal or exceed 14%, bonuses will be eliminated. If the endowment assets gain 20% or more at the end of the year, bonuses could be doubled.