Basic Science Faculty Incentive Plan

Date: November 9, 2020
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:
Faculty members who are tenured or tenure-eligible in the basic science department of the School of medicine(“SOM”). The dean may approve participation of similar faculty in other departments or centers in the SOM, after consultation with the appropriate department chair or center director.

PolicyStatement:

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

1.Grants from government, foundation, and corporate sources.

2.Income from consulting activities.

3.Other qualifying income as determined by the dean of the SOM.

The dean of the SOM will make the final determination of the eligibility of all salary funds. Separate arrangements will be made for those faculty who derive salary support from endowed chairs, other schools, or other departments.

Timing Considerations: Negotiated (base salary + administrative supplement)salaries are those paid on a fiscal year basis(5/25 through 5/24) and qualifying income (see Eligible Extramural Sources above)includes those funds that have been applied towards the faculty members negotiated salary during that same fiscal year. For the School of Medicine faculty members at the rank of Professor or associate professor, or at the rank of Assistant Professor with three or more years of service, incentive eligibility will be triggered by a faculty member’s attainment of a minimum of 50% salary support from qualifying income throughout any given fiscal year. For faculty members at the rank of Assistant Professor with fewer than three years of service at the SOM, the required salary support threshold will remain at the25% level set forth in the original plan.

Each department is responsible for funding payments or distributions made to its faculty under this plan and must meet minimum reserve requirements per the Basic Science Funding Model guidelines. The department chair forwards the recommended incentives to the dean of the SOM for approval prior to the distribution of any incentives.

Incentive Distributions: The following chart shows the minimum total grant support required and how much of an individual’s salary must be funded by eligible extramural sources during the university fiscal year in order for a faculty member to be eligible for the corresponding incentive distribution.

Years on Faculty Salary support threshold before incentive eligibility Percentage of Salary Support by Eligible Extramural Sources Percentage of Eligible Salary Supported to be Paid as Additional Compensation
Faculty with 3 or more years of service 50% 50%+ salary support 50%
Assistant Prof with fewer than 3 years of service 25% 25% – 50% salary support 33%
50% + salary support 50%

Incentive Calculation
Example A

Associate Professor PI is 80% supported by grants and has been on the faculty for 4 years His/her salary is $100,000

Faculty Rank Eligibility Levels required Salary % of Salary Eligible Dollar Range Eligible Dollar Amount Eligible Percentage of Salary Support to Be Paid Amount of Incentive
Associate Professor 50% + salary support $100,000 50% – 80% $50,000 – $80,000 $30,000 50% $15,000
Total Based on Eligible Extramural Sources $15,000

Incentive Calculation
Example B

Assistant Professor PI is 80% supported by grant sand has been on the faculty for 1 year. His/her salary is $100,000.

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Faculty Rank Eligibility Levels required Salary % of Salary Eligible Dollar Range Eligible Dollar Amount Eligible Percentage of Salary Support to Be Paid Amount of Incentive
Assistant Professor 25% + salary support $100,000 25% – 50% $25,000 – $50,000 $25,000 33% $8,333
Assistant Professor 50% + salary support $100,000 50% – 80% $50,000 – $80,000 $30,000 50% $15,000
Total Based on Eligible Extramural Sources $23,333

The department will use departmental reserves for incentive payments authorized under this plan. Only full-time, tenured, or tenure-eligible faculty who are employed by the SOM as of September1during the year that the payments are issued, and who 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.

Policy Background: The SOM has a reward system for basic science faculty-based upon the generation of income which can serve to offset the amount of institutional(state) funds required for faculty salary support.This plan provides an incentive for participating faculty to provide increased amounts of faculty salary support from grants or other sources of income such as consulting agreements

Related Policies

External Consulting and Professional Activities
https://med.virginia.edu/school-administration/wp-content/uploads/sites/304/2020/07/2.000-External-Consulting-and-Professional-Activities.pdf

Salary Support Expectations for Faculty
https://med.virginia.edu/school-administration/wp-content/uploads/sites/304/2020/07/1.640-Salary-Support-Expectations-for-Faculty.pdf

Salary Adjustment
https://med.virginia.edu/school-administration/wp-content/uploads/sites/304/2020/07/1.650-SOM-Faculty-Compensation-1.pdf

Revision History:
Revised 2/1/2000; 7/1/2004,7/1/06, 8/21/06, 5/15/07; 7/1/08; administrative updates 1/27/15; administrative updates 9/15/16; administrative updates 7/27/20; 11/9/20