STATEMENT BY BOARD OF REGENTS CHAIRMAN GERALD L. PARSKY ON THE AUDIT OF UC COMPENSATION BY THE BUREAU OF STATE AUDITS

I greatly appreciate the diligence and professionalism of the Bureau of State Audits in producing this report. This report will add to the efforts the Regents have undertaken to establish the facts regarding past compensation practices, and its findings will be tremendously helpful to us as we go about implementing corrective actions.

The Regents have indicated that we stand ready to take strong action in regard both to individual cases and adoption of improvements to our compensation programs. Our actions must be informed by today’s audit as well as by the review efforts we have launched at the University – including the report of the Task Force on Compensation, Accountability, and Transparency; the PricewaterhouseCoopers audit; and the University’s forthcoming internal audit of members of the Senior Management Group not already reviewed by PwC.

The Regents have asked President Dynes to respond to these reports, including the Bureau of State Audits report, at the May Regents’ meeting. We will review all of this information and begin taking appropriate actions at that time.

We value our partnership with the State of California in addressing these important issues, and the Bureau of State Audits report makes a valuable contribution to the process we have launched.

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