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AG's opinion sought on UCA president's bonus Friday, Jul 11, 2008 By John Lyon Arkansas News Bureau LITTLE ROCK - On the heels of news reports that University of Central Arkansas President Lu Hardin received a $300,000 bonus in May, the chairman of the UCA Board of Trustees asked Thursday for an attorney general's opinion on whether university employees can receive bonuses in excess of state-mandated salary caps. Hardin recently acknowledged that the UCA board voted May 2 to give him a $300,000 bonus two years ahead of schedule. The board voted three years ago to give Hardin the bonus after five years, as an incentive to remain with the university, but it decided to award the bonus early as a show of good faith, Hardin told the Arkansas News Bureau. The decision to award the bonus early apparently was made in executive session. The board voted in open session to approve unspecified personnel decisions, making no specific mention of a bonus for Hardin. Questions have been raised about the legality of making the decision in secret and the legality of the bonus itself. The board decided to take the money for the bonus from a fund that includes collections from student-service vendors such as food stands and the campus bookstore. Randy Sims, the board's chairman, asked Attorney General Dustin McDaniel on Thursday for an opinion on whether the fund should be considered public or private money and whether a bonus from that fund could violate a state statute limiting the pay of university employees. Under state law, an institution of higher education may not pay an employee more than the salary level set by the state Legislature, plus 25 percent. Hardin's salary is $253,000. Hardin has said the board planned to replace the $300,000 with donations from private sources. He has also said he may ask the board to vote again on the bonus in open session. Hardin said last week he regretted that after the May 2 meeting he told reporters he did not receive a raise but failed to mention the $300,000 bonus. His response at the time was an "error in judgment," Hardin said. |
