University of Georgia President Michael Adams stands to receive about $2.7 million over five years as part of a retirement agreement the State Board of Regents is scheduled to vote on Wednesday.
The agreement, which Chancellor Hank Huckaby signed off on, includes a one-time payment of $600,000 in deferred compensation, according to a document The Atlanta Journal-Constitution obtained through an Open Records request Friday. That payment is in "recognition of extended service of more than 15 years and significant contributions to the institution," according to the document.
It was not immediately clear if the $600,000 would be funded by taxpayers or UGA's foundation, said John Millsaps, spokesman for the University System of Georgia. Taxpayers would pay much of the rest.
Rep. Bill Hembree, R-Winston, former House Higher Education Committee chairman and a past critic of university system spending, was stunned by the agreement.
"That seems like an outrageous amount of money," Hembree said. "He’s done a good job, but these golden parachute deals … they just send the wrong message. This isn’t General Electric or IBM. This is the University of Georgia.”
Adams announced Thursday he will retire June 2013. His current total compensation package is $660,318, which includes a base salary of $258,670, according to university system figures.
Adams said he plans to return to teaching and become a member of the UGA faculty. The retirement agreement states he will be a President Emeritus and Regents Professor. He also will have an office, parking and a part-time secretary -- perks given to other presidents once they retire.
Although Adams' agreement may be the largest, the University System has been paying top administrators after they quit their jobs for more than a decade.
Some former presidents have received six-figure salaries for a year or more to prepare for teaching assignments or for transitioning to life off campus. Former longtime Georgia State University President Carl Patton was paid $365,571 in 2009, the year after he left office.
The AJC last year reported that former University System Chancellor Stephen Portch remained on the state’s payroll for nine years after he retired, collecting more than $800,000 as an advisor and consultant.
Some of the payments stem from a regents policy adopted in 1994. The system essentially allowed outgoing top officials to be paid 90 percent of their previous salary for a year, and 60 percent for a second year. Portch has said the aim was to make up for regents' decision not to grant tenure job security to chancellors and presidents.
The policy has since been changed to give the chancellor more discretion.
Before becoming chancellor, Huckaby worked for Adams, serving as the senior vice president for finance and administration. After Huckaby retired from UGA, he continued working for the school, earning a part-time salary of $118,579 as an administrator in fiscal 2008 and 2009, according to state audit records.
Rep. Earl Ehrhart, R-Powder Springs, has long challenged how the regents spend money but said he would "trust their judgment on this one."
"These are savvy business people," said Ehrhart, who heads a state committee that oversees college budgets. "They wouldn't do this if they didn't think there would be a return on the investment."
Adams' successor better agree. Under the contract he or she will be working with Adams for five years.
Staff writer Chip Towers contributed to this report.
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