UK president-elect Eli Capilouto received a five-year contract with a base salary of $500,000 from the University of Kentucky trustees on Tuesday — and indicated that he would not accept a performance bonus for the first year he is in office.
The first year that Capilouto will be eligible for a bonus will be fiscal 2012-13, his second year as president.
Trustees chairman Britt Brockman said Capilouto's salary and benefits package is "roughly analogous" to that of President Lee T. Todd Jr.
Brockman said that the contract closely corresponds to the terms of agreement that Capilouto and the board approved when the now-former University of Alabama-Birmingham provost was hired on May 3. "There have been no major disagreements since then," Brockman said, calling the contract "merely housekeeping" and "a pretty easy process."
Todd's current compensation is $657,000. As UAB provost, Capilouto earned $371,664.
Capilouto's contract includes these provisions:
■ Renewal or extension of Capilouto's contract must be agreed on no later than June 30, 2015.
■ In addition to the $500,000 base salary, Capilouto will receive $50,000 in annual retirement benefit-plan contributions and 15 percent of his base salary also invested in retirement contributions. Those provisions, coupled with Capilouto's base salary, push his compensation to $625,000 before any future bonuses.
■ The bonus available to Capilouto in 2012-13 and after will be no less than 10 percent of his salary, payable in a lump sum.
■ Capilouto will receive a car "suitable for his role as president" and purchased or leased by the university.
■ Capilouto is required to live in UK's official president's residence, Maxwell Place. UK will pay for all household maintenance and operating expenses, including grounds-keeping and housekeeping, and all utilities including telephone, cable high-speed Internet, electric, gas and water. Capilouto will receive a fully equipped home office, including computer and FAX machine.
■ Capilouto will receive membership fees in an organization considered to be of business use.
■ Should the board fire the president, Capilouto may continue employment through the end of his contract as a faculty member.
■ Capilouto will receive a university-issued Blackberry, cellphone and "portable computing devices necessary to conduct his university-related activities."
Capilouto was not present for the meeting, which was the last trustees meeting for retiring president Todd.
Todd, who was showered with accolades by trustees, said that he never expected to be UK's president, but his decade in the job "has been a labor of love."
"I think we're respected nationally sometimes more than we are in this state," Todd said.
Four trustees attended their final meeting on Tuesday. They are: Everett McCorvey, a faculty trustee; Dermontti Dawson, a former professional football player; Penelope Brown, a commercial real estate developer from Corbin; and Ryan Smith, the student trustee.