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II - 1.23 - Policy on Maximum Annual Salary for Faculty

I. Purpose

The purpose of the Bowie State University Policy on Maximum Annual Salary for Faculty is to define the maximum salary a Bowie State University faculty member may earn above his or her regular academic year contract and how that compensation is to be determined.

II. Policy

Faculty will be compensated on an academic year basis, a summer basis, and an annual basis with the maximum compensation of 20% as determined by the formula outlined in the Procedures Section below.

III. Procedures

A. Maximum Academic Year Compensation

1. Formula:  The maximum academic year compensation for a faculty member on a ten-month contract would be determined as follows:

a. Multiply the ten-month salary by .20; the resulting figure is the maximum overload allowed for ten months.

b. The sum of the overload calculated in (a) plus the ten-month salary is the maximum ten-month salary allowed.

2. Example: The maximum academic year compensation for a faculty member making $40,000 on a ten-month contract would be determined as follows:

a. To determine the overload salary for ten months, multiply the ten-month salary by .20: $40,000 x .20 = $8,000.

b. To determine the maximum ten-month salary, add the overload in (a) to the ten-month salary: $40,000 + $8,000 = $48,000.

B. Maximum Annual Compensation

1. Formula: The maximum annual compensation for a faculty member will be determined as follows:

a) Annualize the ten-month academic year salary; then

b) Multiply that figure by 1.2 to obtain the 20% maximum overload compensation.

2. Example: The maximum annual compensation for a faculty member making $40,000 on a ten-month contract would be determined as follows:

a) To determine annualized salary, divide ten-month salary by ten and then multiply the monthly salary by twelve: $40,000 / 10 = $4,000 per month; 12 x $4,000 = $48,000 annualized salary.

b) To determine maximum compensation (20% above annualized salary), multiply annualized salary by 1.2: $48,000 x 1.2 = $57,600 maximum yearly compensation.

C. Maximum Summer Compensation

1. Formula: The maximum summer compensation, the maximum regular summer compensation, and the maximum summer overload compensation will be determined as follows:

a) Maximum summer compensation: subtract the maximum academic year compensation from the maximum annual compensation.

b) Maximum regular summer compensation: multiply the ten-month salary by .20.

c) Maximum summer overload compensation: subtract the maximum regular summer compensation from the maximum summer compensation.

2. Example: The maximum summer compensation, the maximum regular summer compensation, and the maximum summer overload compensation for a faculty member making $40,000 on a ten-month contract would be determined as follows:

a) Subtract the maximum academic year compensation [II.A.2.b] from the maximum annual compensation [II.B.2.b]. The difference is the maximum summer compensation: $57,600 - $48,000 = $9,600.

b) Multiply the ten-month salary by .20. The resulting figure is the maximum regular summer compensation: $40,000 x .20 = $8,000.

c) Subtract the maximum regular summer compensation from the maximum summer compensation. The difference is the maximum summer overload compensation: $9,600 - $8,000 = $1,600.

 

Effective Date:  11/30/1994