Athletic Department

Rachel Bachman at the Oregonian does a good job getting the facts out:

5/9/2009: End of Kilkenny Era

Someone should start filing some public records requests on this stuff – starting with the highly unlikely claim that the Athletic Department’s books are balanced. It would be a simple matter to request the budget reports and then see what they are actually including as expenses in those reports.

Another issue is conflicts of interest. What do you think the chances are that the ~200 employees over there are, many with years of experience, moving in and out of marketing jobs and endorsement contracts, are actually reporting all their financial conflicts of interest with UO contractors such as Nike? State law requires such reports.

Frankly we are too busy with the academic side to do much of substance here, but if you have anything particularly interesting, use the comments or email [email protected]

UO Foundation

The UO Foundation is a non-profit established to raise and manage money for UO. Non-profit status means it must report some information to the IRS. Here are copies of the UO Foundation’s IRS 990 forms. These explain assets, administrative salaries, and give some hints about how the Foundation spends money. The US Senate Finance committee under Grassley and Baucus has pushed revisions to IRS rules which will require considerably more complete documentation – these take effect next year.

The Foundation always runs out the clock on the allowable IRS extensions – this is a common strategy by non-profits to keep information private as long as possible. They have just released the form for the FY ending June 30, 2008. Data for the FY ending this June will likely not be available until nearly a year later – May 15 2010. Late and incomplete as they may be, these IRS are currently the best available public information on how the foundation spends the money it receives for UO.

UO Foundation IRS 990 forms are below. The 07-08 form is full of interesting info we haven’t yet figured out – like $million plus payments for “UO President’s Office”, whatever that means. Anyone got a clue?


Be the Change

UO’s new President Richard Lariviere takes office 7/1. We hear very good things about him from people we trust. He has a few less than two a months to decide how to fix UO. Don’t let him get all his information from the usual suspects. Email him at [email protected], and tell him your perspective on what is right and wrong about UO.

Paul Kelly, chair of the OUS Board is another good person by all accounts, who gets too much information from Frohnmayer, Bean, Grier, Dyke and Hubin, and too little from faculty and students. cc him at [email protected]

Illegally backdated Aff. Act. Plans

posted 5/3/09

Federal regulations require UO to prepare and update it’s Affirmative Action plan every year. At UO, AAEO Director Penny Daugherty never does this and President Frohnmayer then backdates the plans to make it look like we are in compliance.

If you are filing an AA complaint, this is fraud. It will look like UO was in compliance when they were not. A recent Emerald story says

“The plan is suppose to be updated annually; it is a 12-month plan,” said Harold Busch, the former OFCCP Director of Program Operations. “That means (the contractor) needs to have a new plan in effect at that date. You can choose the date … but you must be consistent.”

UO’s 2006 AA Plan is dated “effective Jan 1 2006”. Frohnmayer didn’t sign it until after May 23, 2007, and as these letters show he then backdated it to Jan 1 2006. Incredibly, the current AA plan on the AAEO website is dated Jan 1 2008 – so it’s now 4 months out of date. Apparently Frohnmayer backdated this one, actually signing it in October 2008 or so. Doug Park in the GC’s office won’t tell tell us exactly – that’s right, UO will not tell people when they actually implemented their Affirmative Action Plan!

Complaint to the OFCCP is below:

Dear Mr. Rios:

This is a complaint regarding the failure of my employer, the University of Oregon (UO), to file annual Affirmative Action Plan updates, and their efforts to backdate their AA plan when they finally did update it. I believe UO is required to update these plans annually, and I think that backdating a document of this sort is fraud, or something close to it. I am filing this complaint for myself and for several anonymous minorities, a woman, and a Vietnam veteran, all of whom have asked me to pursue this matter.

I originally started asking the UO Affirmative Action Director, Penny Daugherty about AA plans in May 2006. At the time, UO’s most recent AA Plan was dated January, 2004. Ms Daugherty told me that an update was being prepared. I waited a few months, but nothing happened.

Ms Daugherty then stopped responding to my emails. I then asked UO General Counsel Melinda Grier what was going on, and she also refused to answer. I had a meeting with the University’s Provost, Linda Brady, and the Vice Provost for Diversity, Charles Martinez, on Oct 10, 2006. They assured me the plan would soon be updated, and I said would not pursue the matter meanwhile.

Then in April 2007, I checked and found the plan was still not updated. The AAEO website still listed the plan from January, 2004. I asked around again, but again Ms Daugherty just wouldn’t reply. I wrote a letter to the OFCCP Director in Washington. I emailed UO President Frohnmayer on 5/8/2007, asking what was the holdup, and cced a few newspaper reporters on the email. This got his attention, and he responded a few days later. So I know that as of 5/11/2007, UO had not updated its AA plan from the January 2004 version.

A week or so later I checked the AAEO website. They had now posted a new AA plan. The plan, however, was backdated to say “effective January 1 2006.” It even says this on the page where President Frohnmayer signs it, giving “his personal and professional commitment to equal opportunity”!

As I understand the process, the AA report is prepared by Penny Daugherty and UO’s AAEO office. UO General Counsel Melinda Grier (a specialist in labor and discrimination law) supervises the efforts, and VP for Diversity Charles Martinez consults. None of them have responded to my questions about when the plan was actually complete, much less why they would agree to go along with backdating this official document.

However, I have been told that several discrimination complaints and several lawsuits involving accusations of discrimination are underway against UO. I would think it is important that the people making these complaints know that this backdating has occurred, since it’s my understanding that in the absence of a current AA plan, the burden of proof for some matters involving discrimination claims is with the defendant.

In short, I think the actions of the UO and Frohnmayer, Grier, Martinez, and Daugherty may already have led to, or may about to lead to, real harm.

I very much appreciate your efforts to investigate this situation.


Martinez’s (Diversity VP) 2nd $150K job

Update 5/31/2009:

Greg Bolt has an article in the RG on overcomittment problems at UO. Diversity VP Charles Martinez comes in for special attention. Martinez’s off campus job is at the Oregon Social Learning Center. By running his NIDA grants through OSLC he has been able to do an end-run of the normal overcommitment rules. Here are the contracts showing Martinez’s 3/4 time UO position (pages 1-6) and his 3/4 time OSLC position (pages 7-12). The most recent report, through September 2008, has him working an average of 25 hours a week for OSLC, so he’s billing 19.5 months per year. At one point it was up to 21. His current pay, including a strange “administrative supplement” is now about $150K from UO, plus another $85K from his OSLC grants.

In fairness to Provost Bean he inherited Martinez from Provost Moseley, who had to hire a diversity VP on the quick, after he lost a discrimination lawsuit. So quick that UO didn’t even do an affirmative action compliant search, even a year later, when they converted him from interim to regular. No AA search for the VP for Diversity!?

While Martinez refuses to answer questions, Provost Bean says he’s doing a heckuva job, and it’s fine for him to ignore the usual 1 in 7 day rule on outside work, not run his grants through UO, and have two jobs. As usual with Greg’s articles, you wish he would follow up on his questions, as in: “Really, Provost Bean – you think it is appropriate for one of your VPs to have a 25 hour per week job on the side? Would you offer the same deal to a professor?”

Update from 5/13/2009 Senate meeting:

The meeting also had the Diversity Progress report by VP Charles Martinez. Charles’s speech was straight up bureaucratic double-speak. As has become traditional, Charles brought a large contingent of UO Diversity Committee people with him for protection, announced their presence and had them stand before speaking, and took so long to say nothing that there was no time for questions about that nothingness. But at least this year he took time off from his OSLC job to show up for the meeting, and we appreciate that gesture – so thanks Charles we really appreciate the (literally!) 1137 pages of “Diversity Action Plans” your office has processed. An awesome achievement, on paper.

Notably, Martinez did not mention the UMRP once. We will have more on why later. The other rumor is that his office will be reorganized and Charles will be replaced in fall, because of his second job and because people are beginning to wonder exactly what his office does, besides spend $1 million plus per year. The press release will read something like “Mission Accomplished”. We expect (hope?) that President Lariviere will insist on an open hiring process – it’s a little embarrassing having a Diversity VP who was hired without an Affirmative Action compliant search!

UO Senate motion on financial transparency

5/14/09 Update:

Nathan Tublitz’s UO Senate motion for a bit of financial transparency passed on an unanimous voice vote with a few minor amendments. The argument was over when a Senator said to Frohnmayer: “You are asking us to give up our pay to help out UO. We deserve to know how you are spending our money.” Somehow that didn’t sink in with Frances, who kept on arguing. The motion as passed is here.

Professor Nathan Tublitz has introduced the motion below, calling for UO to follow the OSU lead and provide public access to all accounting information. This simple change would mean the faculty might finally learn how UO spent the extra $12 million in tuition money that came in last year.

Rumor control says Frohnmayer has told the Johnson Hall dwellers that they are to say publicly that they don’t oppose this motion and try and move the Senate to a compromise that would only apply to transactions that occur after President Lariviere takes over. Now why would that be so important? Anyone who’s been at UO for more than a few years knows Frohnmayer’s code of omerta. Perhaps the most vicious recent example was what happened to PPPM Prof. Jean Stockard. But remember, she fought it and won.

UPDATE 5/5/2009: Frances Dyke has now caved on Nathan Tublitz’s motion to require UO to post accounting info on the web. A bit late. Rumor is that Bean is going to hire a new VP for Finance, with responsibility for all the parts of the job Frances hasn’t been able to figure out. She of course will keep her $212,493 salary – hey, it’s not like the state is short of money or anything.

Motion US 08/09-8 Concerning Transparency of University Financial Transactions


SPONSOR: N. Tublitz, Department of Biology

BACKGROUND: The University of Oregon releases general financial information regarding expenditures on an annual basis. However detailed information on specific expenditures is not easily available. For example, it is currently nearly impossible to ascertain how much did the Biology Department spend on frogs for dissections last term or what were the monthly fax charges accrued by the Romance Languages Department last month.

Our colleagues at Oregon State University have developed a user-friendly, on-line budget reporting web site where users can track expenditures, transaction by transaction, by clicking on specific budget lines in an academic department or administrative office, from the President’s office on down ( The OSU system easily tracks individual line items and shows for each how much was budgeted, actual expenditures and available balances. A video demonstration of the OSU system can be viewed at

The OSU on-line budget reporting system has received national exposure and praise (e.g., A State of Oregon legislative bill (House Bill 2500; ) has been introduced in the current legislative session to establish a similar type of searchable budget reporting website for all executive, legislative and judicial branches of state government. This motion proposes to establish an on-line budget reporting system at the University of Oregon similar to that already in place at Oregon State University.

MOTION: The University Senate directs the University of Oregon Administration to establish a publicly accessible, on-line budget reporting system at the University of Oregon by 1 September 2009 that will allow users to track current and retroactive individual university expenditures as is currently done at our sister institution Oregon State University on their budget reporting website (

FISCAL IMPLICATIONS: OSU’s VP for Finance and Administration, Mark McCambridge, states that their cost of developing a web site to interface with their existing budget database (BANNER) cost less than $10,000. Given that OSU has already produced the interface, the cost to the University of Oregon should be significantly less.

Accounting secrets at OSU and UO

At Oregon State there are none.

OSU’s VP for Finance Mark McCambridge has posted all financial information to the web – every single transaction. See (10/7/2009: now apparently restricted to OSU IP addresses.)

Quoting from the Inside Higher Ed news story:

Since the university already maintained a central database storing transaction information, the process of bringing it into public view took just a few months, with a price tag below $10,000.

“It’s pretty basic, but it is very transparent. Everybody in the institution can see everything that goes on everywhere,” says Mark McCambridge, vice president for finance and administration at Oregon State.

At UO, VP for finance Frances Dyke has been busily instructing her employees to remove what little accounting info is available from her website. (See update here.)

Quoting from the email we were sent by an employee of Ms Dyke’s and written at her instruction:

… we removed the information from our publicly-accessible website and restricted access to personnel with a “demonstrably legitimate need for particular information in order to fulfill their official, professional responsibilities.” Those personnel include those who perform business and budget transactions within the BANNER enterprise accounting system (i.e. campus budget and business officers and core-office personnel.)

You can be sure is making every effort to find out exactly what Ms Dyke is trying to hide (legal disclaimer: if anything) and that we will post it publicly as soon as we do.

UPDATE: Soon after we sent her the URL for this post, Ms Dyke sent the email below to all UO faculty and Staff. She sends this out 6 months after the policy is adopted? How does she expect people to report “financial irregularities” when they can’t get any of the accounting information? Isn’t that part of a modern bookkeeping operation? Oh, wait, I get it – she’s afraid that…

To: University of Oregon Community

From: Frances L. Dyke, Vice President for Finance and Administration

Date: May 4, 2009

Subject: Financial Irregularity Reporting Hotline

All of us share responsibility for ensuring that the university conducts its financial transactions in ways that are ethical, honest, and reflect sound fiduciary practices. Because the University of Oregon and the Oregon University System (OUS) take this obligation seriously, a revised Financial Irregularities Policy was adopted in November 2008 by the Oregon State Board of Higher Education. This revised policy encourages employees to report any suspected financial misconduct to the appropriate university office, the OUS Internal Audit Division, or through the Financial Concerns hotline.

The OUS has contracted with EthicsPoint, an independent, third-party vendor, to provide a confidential and anonymous telephone and Internet system for reporting your financial concerns. The OUS Internal Audit Division administers the hotline system and will follow up on reports.

Additional information concerning the hotline and related policies and procedures can be found on the OUS Reporting Financial Concerns webpage ( A link to the OUS Financial Irregularity Reporting Hotline has been provided on the UO Business Affairs ( and VPFA ( web pages.

Your commitment to integrity and honesty is an important element in maintaining an ethical and secure workplace environment for everyone. Your help in calling attention to unethical or irregular financial practices is greatly appreciated.

Furlough Bottom Line:

The question on the table is should you take the furlough? The senior administrators who are pushing the furlough earn 100% of their peers and recently spent $2.4 million remodeling their own offices. Our president who just got a $150,000 raise, has signed up his retiring VP’s for golden parachute retirements, and is trying to finagle OUS into giving him the same. They haven’t told you the truth about UO’s admin expenses, about Bend losses, etc. So, no, I don’t think you should. It’s pretty clear where your money will end up.

People are concerned about the classified staff they work with. Here’s how to help them out. Get together with other department faculty. Decide how much extra money the department wants to give staff. Divide that total up among the faculty, asking more from those with higher incomes. Then ask for donations. Tell people your goal, their share, and announce that if you do not meet the goal you will give the money back to the donors. This makes every person’s donation “pivotal” and substantially increases the incentive for each faculty to give. These donations are not tax deductible, but at least you will know who is getting the money!

UO does lots of good work, and we all know a lot of those programs are badly underfunded. So, you can also go to UO Foundation website and earmark a donation for those programs you particularly care about.

UO’s Bend programs lose $1 million per year.

Update: 5/14/2009 : Provost Bean’s claims on Bend have morphed from “we are slightly in the black” when asking the faculty for furlough contributions to “we’ve lost millions but we will almost break even next year – if no one notices we are keeping everything possible including Moseley’s salary off the books.” Uh, but he’s the Director, Jim. And what about Leahy and Seitz? You are going to lose your last shreds of credibility over this. Everyone including the CAS Dean knows you haven’t been telling the truth and still aren’t. Sunk costs are sunk – as it don’t use them to justify digging a deeper hole. You are paid enough to do hard things, this one is easy.

At the 4/14 furlough meeting Provost Been told us that UO’s administrative expense ratio was 38% of peers. See his reply to the question at 50:20 in the video. The 38% number is simply a fiction as the post here demonstrates, and the administration apparently just has no idea what the actual ratio is.

So what about the claim Bend makes money? See 32:18 into the video above, where Provost Bean says “A slight profit, very slight, but in the black”. It turns out that this is not true either. I recently was forwarded the email below from a UO administrator to Provost Bean who was not happy that the true cost of Bend had not been presented accurately to the faculty. The gist is that Bend has only 15 graduates per year and the program is losing about $1 million a year. The subtext is the rumor that Frohnmayer is planning on retiring to Bend and administering the UO Program there, or perhaps the entire OSU – Cascades effort. He already owns a $1.05 million dollar home there.

So that’s two false statements so far. What’s left? The claims that Portland is not costing Eugene money and that athletics is self-supporting (48:50). Regarding the first, I’ve already heard from someone that the money for the White Stag sign was not an earmarked donation but will come out of general foundation funds – i.e. funds which could have instead be used to plug the budget gap. Thanks for that, but we really need the documentation, so keep those emails coming to [email protected]!

Text of original email:


I have been asked by a number of persons in xxx and elsewhere about the Bend campus. Since part of my job is xxx I thought I should look into the questions myself. Ultimately, this pointed me to the need to have a budget summit, which I will explain below.

The costs on the books for running Bend as you know are around $1 million dollars. This is an underestimate, of course, because many costs of running the campus are borne directly by the Eugene campus. For example, the AV tech at the library who helps beam courses to Bend is not counted towards Bend and it looks like some of the TRP (tenure reduction program) monies for faculty is also not included as costs. The revenue generated by the campus is also hard to figure exactly. However, at its maximum, Bend enrolls 100 students and graduates 15 annually. A significant portion of those students are part-time, nearly all are in-state, and there is very little auxiliary income from these students. Even if they were full time, however, the revenue generated from those students would fall approximately $500,000 short of the known costs of operating the campus. Thus, unless there are significant sources of revenue that are not related to students, the Bend campus is significantly in the red.

However, this really does not express the full cost of the campus, because there are opportunity costs associated with running the campus in the sense that it directs resources away from Eugene that could be used more efficiently on the main campus. For example, the TRP faculty teaching in Bend could teach more students in Eugene than they could in Bend where the average class size in 9. In a time where student demand is exceedingly high and we short of instructional faculty, this cost is substantial. There are many other places you could make this type of opportunity cost argument that make Bend a really poor investment.

Finally, there is a lot about the Bend campus that just does not “feel right”. For example, while no one really wants to put find a point on it, the fact that John Mosley is collecting a six figure salary while being retired in Bend (even if it is legit) does not look right and perceptions are important – particularly in economic hard times when you are asking faculty to give back.

Thus, the resistance you are getting from the numerate persons on campus for Bend, etc. is not misplaced and ultimately I hope you are willing to listen to their very sound advice on Bend and other similar types of expenditures. While I understand that there were other (e.g., political) reasons why having a presence in Bend was important, the recession provides us the opportunity to allocate resources based on sounder economic principles and we should not waste this opportunity.

This exercise points more generally to a need for a deeper and broader consideration of “how we spend our money”. I am on board with the voluntary salary reduction plan this time because I do believe that we did not have sufficient time to respond to the ever changing financial picture. However, in the next biennium, we will have time to plan and we should begin now with a budget summit that includes all the leadership. The essential component to such a summit is the presence of detailed data for all the academic and central units on campus (and off – e.g., Bend and Portland). Before I would agree to take another voluntary cut in pay myself and before I would ever recommend that other faculty participate in such a pay reduction, I think we need to understand what the tradeoffs are and I believe we have an obligation to be more creative with our finances than we were able to be at the end of this biennium. In order for me to understand such tradeoffs and to be able “with a straight face” ask my faculty to pitch in, I am really going to need to understand where the money is going and not take it on faith that, for example, “Bend is breaking even” and “Portland is not costing the main campus anything”.

Thus, I think it is time to start considering some serious tradeoffs between a number of “sacred” elements on campus which include “salaries”. Let me give an example that does not involve Bend – library serials and OIED program grants are both things we value on campus even to the point of being “sacred”. However, we are letting one sacred cow be gored without possibly considering a reallocation of funds from other sacred cows being held harmless. I think we need to be prepared (not afraid) to ask this tough question “Are the current allocations appropriate and consistent with our “Academic Plan”. Careful consideration could involving taking funds from OIED program grants in order to help fund the library. Obviously, there are other places we can go to examine tradeoffs – I picked these two because they are something our campus has shown commitment to and represent choices that people would find hard.

In the end, I think we owe faculty, staff, and students more over the next biennium in terms of a careful consideration of how to address the economic crisis. xxx We are at a critical time where we have the opportunity to examine our priorities and the campus will be willing to listen because of the economic crisis. Thus, we do have an opportunity in this crisis.

I would love to talk more about this idea of a budget summit.

Portland campus expenses and funding sources

UPDATE: As of 5/15/2009, no response from Provost Bean on this:

Sent to Provost Bean 4/19/2009:

Dear Provost Bean:

At the Furlough town hall you asked faculty to email this address if they had questions. This one regards the budget for UO-Portland.

At the meeting you explained that much of the White Stag renovation was paid for by the developer, with money from federal redevelopment funds. You said that UO had made lease specific improvements, but that these had been paid for, so far, using proceeds from the sale of another building. Paraphrasing, you also said that the cost of buying the WS sign, and presumably redoing it, would not come out of general funds, but would be paid by Foundation money. The implication was that these funds therefore were not available to deal with the current crisis.

I am hoping that you can explain two aspects of your statements in a little more detail:

First, how much did UO get from selling other Portland property, how much of that has been allocated to the WS renovation, and what will be the likely net surplus or uncovered cost. What purpose will any surplus by reallocated to, or any shortfall made up from?

Second, that sign again. In your remarks at the meeting I don’t think you said there was an (earmarked donation) specifically for the sign or specifically for WS remodeling. I realize donations to the foundation are exempt from some of the disclosure rules, but I am hoping you can explain how much money has been given to the WS project, with earmarks of what type.

For example, if the money comes from funds earmarked for WS renovations generally, couldn’t that offset other funds which could then be reallocated back to some project with more importance, given our current budget crisis?

This sign has a lot of significance – sort of the point of a sign I guess – and this question comes up time and time again in the debates of UO’s spending priorities. Letters to the editor has focused on this repeatedly. I this it would be good to present a credible evidence based argument that the money that is about to be spent on the WS sign could not legally be redirected to other UO projects, should such an argument exist.

Thanks for your time, and I will post these questions and any reply from you at

Comments and news tips:

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A link to the latest UO Foundation IRS 990 form is below. The 07-08 form is full of interesting info we haven’t yet figured out – like $1 million plus payments for “UO President’s Office”, whatever that means. Anyone got a clue read here: 2007-08

(We’ve now heard that these payments were authorized by former Foundation head Karen Kreft, but that the new Interim head Jay Naymet thought they were inappropriate and stopped them this year.)

We’ve had some very helpful tips about Lorraine Davis’s questionable “job”, Frances Dyke’s replacement/replication, Frohnmayer’s golden parachute contract, Bend and Moseley (damn is that a popular subject!) Martinez’s double dipping, the ICC return grab-back, … Thanks!

Several readers have asked about Frohnmayer’s upcoming asian junket. Apparently he is taking a few aides on a tour of Asian universities. Macau has been mentioned – perhaps because of the lack of an extradition treaty. (Nope, saw that movie – you’re thinking Venezuela, friend.) If you’ve heard anything more detailed – as in who is going, where, and most importantly who is paying (just so we can help out with a contribution, of course) drop an email to [email protected]

UO’s administrative expenses 38% of peers? Not true.

At the furlough meeting Provost Bean told us that UO’s administrative expense ratio was 38% of peers. See his reply to the question at 50:20 in the video. This number was repeated in Greg Bolt’s RG story about the meeting. This issue matters because the admin need to have some justification for asking the faculty and staff to take cuts when administrators are making such small sacrifices themselves. It turned out that Bean did not actually have a copy of the study from which he quoted, but simply remembered hearing the number somewhere. A group of curious faculty got on the question, and with the help of a local reporter tracked down the source, on page 38 of this document:

The data on the page does not even remotely support Provost Bean’s 38% claim – for example, it compares the total administration and *facilities* costs of schools. Further, each of the comparators has a med school, engineering school, etc. All have, for example, at least one nuclear reactor. The cost of operating those reactors – think fuel rods – is included in the number Bean was using to argue that UO’s costs for *administrators* are relatively low. Unless UO is now fielding nuclear powered Vice Provosts, (heads up guys: notify the UN inspectors first) we can dismiss this 38% number as a convenient fiction, designed to justify asking faculty to make sacrifices that administrators will not make themselves. I have asked Provost Bean to issue a formal retraction.

Next up, his claim that we are making money in Bend. He has promised to make a complete accounting report. Meaning that he made the Bend claim without actually understanding those numbers either. UPDATE: Those numbers were made up too.

The Gist of the Furlough Plan

Senior administrators at UO earn 100% of their comparators.
President Frphnmayer earns $150,000 more than his comparators.
UO Faculty earn 83% of their comparators.
We’ve taken voluntary cuts for years.

When Frohnmayer and the VPs have given back enough salary to get down to 83% like us, we should have a serious conversation.