Research Department Faculty Incentive Plan

Date: August 8, 2025
Policy ID: 1.620
Status: Final

Contact Office:
Director of Faculty Affairs
PO Box 800793
phone: 434-243-4078

Oversight Executive:
Senior Associate Dean for Faculty Development and Faculty Affairs
PO Box 800793
phone: 434-924-5118

Applies to:

All faculty on the tenured or tenure-eligible, Academic Investigator (AI) track whose primary appointment is in a research department in the School of Medicine (“SOM”) except for faculty who are in the Department of Biomedical Engineering (BME). Other departments and centers may leverage this model as deemed appropriate by the department chair or center director, but may not have a model that defines lower threshold metrics for incentives.

Background & Reason for Policy:

To establish a reward system for tenured and tenure-track faculty in research departments who generate salary coverage on extramural sources in excess of the stated expectations in the salary support policy. This plan incentivizes participating faculty to provide increased amounts of faculty salary support from grants or other sources of income such as consulting agreements.

Policy Statement:

Tenure-track faculty in research departments who generate salary coverage on grants in excess of the stated expectations in the salary support policy will earn an incentive of 50% of the funding in excess of the expectations.

Eligible Extramural Sources:
Sources of faculty salary support that will be recognized in the funding formula include:

Grants & Contracts from government, foundation, and corporate sources.
Other external qualifying income.

The dean of the SOM, and/or designee, will make the final determination of the eligibility of all funding eligibility.

Timing Considerations:
Total annual salary is paid on a fiscal year basis and qualifying income (see Eligible Extramural Sources above) includes those funds that have been applied towards the faculty member’s total annual salary during that same fiscal year.

Eligibility for Incentive:
School of Medicine faculty members on the Academic Investigator track in a Research Department are eligible for an incentive when the faculty member attains the minimum of salary support from eligible extramural sources through any given year. The minimum salary support threshold is aligned with the Salary Support Expectations for Faculty Policy and is:

50.0% for fiscal year 2024
53.3% for fiscal year 2025
54.0% for fiscal year 2026
56.0% for fiscal year 2027
58.0% for fiscal year 2028
60.0% for fiscal year 2029 and ongoing

Incentive Calculations & Distributions:
The incentive for eligible faculty will be calculated as 50% of any salary coverage in excess of the eligibility incentives defined above.

Incentive Calculation Example

Tenure track AI is 80% supported by grants.

Fiscal Year	Eligibility Levels Required	Salary	Actual Salary Covered	Expected Salary Coverage	Amount over coverage expectation	% Salary Support to be Paid as Incentive	Amount of Incentive
Fiscal Year 2025	53.3%+ Salary Support on Eligible Extramural Sources	$100,000	$80,000 80%	$53,300 53.3%	$26,700	50%	$13,350
Fiscal Year 2026	54.0%+ Salary Support on Eligible Extramural Sources	$100,000	$80,000 80%	$54,000 54.0%	$26,000	50%	$13,000
Fiscal Year 2027	56.0% Salary Support on Eligible Extramural Sources	$100,000	$80,000 80%	$56,000 56.0%	$24,000	50%	$12,000
Fiscal Year 2028	58.0%+ Salary Support on Eligible Extramural Sources	$100,000	$80,000 80%	$58,000 58%	$22,000	50%	$11,000
Fiscal Year 2029 and Thereafter	60.0%+ Salary Support on Eligible Extramural Sources	$100,000	$80,000 80%	$60,000 60%	$20,000	50%	$10,000

Departments are responsible for funding incentive payments authorized under this plan. Only full-time, tenured, or tenure-eligible faculty who are employed by the SOM on the date the payment is issued, and who meet the meet the other criteria outlined in this policy, are eligible for the incentive.

Compliance:
The intent of this plan is to stimulate all participating faculty to produce income that can be used to support faculty salaries. In order for this plan to be successful, it is necessary for each faculty member to request, on all grant proposals, an allotment for faculty salary consistent with the percentage of professional effort to be devoted to the project. Exceptions will be made if the sponsor has a published limitation on the amount of faculty salary that can be requested. Once awarded, it is expected that all funds originally budgeted and subsequently awarded for faculty salary support (less a proportionate share of any across-the-board cuts made by the sponsor) will be used for this purpose. At fiscal year-end and before incentive calculations are finalized, it is expected that grant deficits are covered.

Related Policies:

Revision History:
Created 8/8/25

Approved:
Melina R. Kibbe, MD
August 2025