The UNC Policy Manual
Administrative Separation of the President and Chancellors
1. Retreat to a faculty position: If a chancellor resigns from the position of chancellor, or if the president resigns from the position of president, after having served in that position for at least five years, if the chancellor or the president will assume a tenured or non-tenured faculty position at a constituent institution of the University of North Carolina, and if there is not good cause to terminate the chancellor’s or the president’s service at the time that the chancellor or president resigns, then the chancellor or president will receive a one year research leave at the chancellor’s or the president’s most recent administrative salary. Non-salary compensation such as a house and an automobile will not be continued during the one year research leave.
At the end of the research leave, the chancellor or president will assume the faculty position with a nine month appointment, with duties and responsibilities in accordance with departmental expectations. The initial annual faculty salary will be the greater of 60% of the most recent annual administrative salary or a salary that is commensurate with the salaries of comparable faculty members in comparable positions.
2. Separation from the University. In some cases, a chancellor or a president may not be assuming a faculty position. It may be in the best interest of the University and a chancellor for the University to negotiate a severance agreement with a chancellor. In these circumstances, the president may, at the president’s discretion, determine that the circumstances justify providing severance pay in the amount of the chancellor’s full administrative pay for up to 90 days. Non-salary compensation such as a house and an automobile will not be continued during this period of full compensation, although the president may allow the chancellor a reasonable amount of time to vacate the chancellor’s house. Any agreement that results in a longer period of compensation must be approved by the Board of Governors.
The Board of Governors may, in its discretion, negotiate a severance agreement with a president who is resigning and is not assuming a faculty position.
3. Separate agreement: If the Board of Governors enters into a written agreement with a president or a chancellor, the terms of that agreement shall supercede this policy.