When former UM System President Tim Wolfe [resigned on Nov. 9](https://www.themaneater.com/stories/2015/11/9/wolfe-announces-resignation-um-system-president/), he didn’t just give up his position as the leader of the UM System’s four campuses. He also lost thousands of dollars in potential earnings and future payment through deferred compensation.
Wolfe signed four contracts over the course of his tenure as president: an original contract in 2011, an amended contract in 2012, a second amended contract in February 2014 and an amended and restated contract in August 2014. Obtained through an open records request, Wolfe’s August 2014 contract details the specifics of his presidency, including job duties, salary and additional compensation.
The August 2014 contract extended his term as president until June 2018. Wolfe was originally set to serve as president until February 2015, but the UM System Board of Curators voted to extend his contract.
“The board is pleased to extend President Wolfe’s contract to demonstrate our support for his performance as our university’s chief administrative officer,” said Don Downing, chairman of the UM System Board of Curators, [in a news release](http://www.umsystem.edu/ums/news/leadership_news/082014_news) Aug. 20, 2014 announcing Wolfe’s contract extension. “We are grateful for his leadership, and look forward to working with him for many years to come.”
Wolfe had five official job duties, according to his contract. He was to “serve as the chief executive and academic officer of the University,” following all board bylaws and rules and regulations. He was to devote his best efforts and time to “properly further the interests of the University” and “perform (his) responsibilities in a manner satisfactory to and subject to the direction and control of the board.” He was also to comply with all rules and regulations of the UM System and “truthfully and accurately maintain and preserve the University’s records and make all reports required by the board.”
Wolfe’s annual base salary was $459,000 for 2014-15. The base salary would be “subject to annual review and adjustment by the board” for subsequent years. It could not be less than $459,000. Wolfe’s salary increased to $477,544 for 2015-16, per the average annual increase for all university employees.
In addition to his base salary, Wolfe was entitled to additional deferred monetary compensation, both performance and longevity-based. The board met annually to assess Wolfe’s performance the preceding year and decide upon the amount of performance-based compensation. Longevity-based compensation was earned for continuing in the position.
The contract stated that there would be a “substantial risk of forfeiture” of the money in the deferred compensation account in the event that Wolfe voluntarily terminated his employment with the UM System prior to 2018 or if Wolfe was terminated with cause. Wolfe received the money in the deferred compensation account in February 2015. He would have received further deferred compensation funds again in 2018.
It is unclear what, if any, further deferred compensation Wolfe will receive in the future given his resignation. He did not sign a resignation letter or agreement, according to an open records request.
According to the August 2014 contract, for 2013-14, Wolfe earned $68,750 in performance-based pay and $68,750 in longevity-based pay. This money was placed into a deferred compensation account to be paid to Wolfe at a later date.
From the 2014-15 period onward, Wolfe would annually earn $50,000 of longevity-based compensation, placed into the deferred compensation account. Wolfe could earn up to $50,000 in performance-based compensation, paid directly to him, based on the board’s assessment of his overall performance and accomplishment of yearly mutually agreed upon performance-based goals.
Wolfe also received a monthly housing allowance of $2,400 and could use any available UM-owned property for university-related business and entertainment at the expense of the UM System, including the UM System official residence, Providence Point. He could opt to receive either a car to be used “for all purposes deemed appropriate by the president” or an automobile allowance.