This policy applies to contracts with, and compensation for the president of American University (the “University”).
Any University contract with the president, including the president’s employment agreement, shall be in writing and shall contain all material financial terms. A contract with the president shall be disclosed in full to the Board and must be approved by the Board prior to its execution on behalf of the University.
The terms of any contract with the president, and the compensation to be paid the president, shall be reviewed periodically by the Compensation Subcommittee of the Board’s Executive Committee, which may engage counsel and compensation specialists as the subcommittee deems advisable to assure that the compensation paid is appropriate in relation to that paid by comparable institutions of higher learning for similar services, as well as other relevant considerations including performance. To be effective, any report, recommendation or finding of the Compensation Subcommittee, or any other committee, regarding the president’s compensation, must be approved by the Board and recorded in the minutes of the Board meeting at which such vote occurred.
The Board will receive a periodic evaluation of the president’s performance from the Compensation Subcommittee, which will consult with the various University constituencies in preparing its report.
On an annual basis, the compensation information reported by the University to the Internal Revenue Service will be shared with the University community.
The Vice President of Finance of the University shall serve as the contracting officer for each contract with the President. The Vice President of Finance shall sign each contract as approved by the Board and maintain the original copy for the University. The Vice President of Finance and the General Counsel shall be consulted by the Board before such a contract is executed, and thereafter the Vice President of Finance, in consultation with the General Counsel, shall oversee compliance with the contract.