Purpose

Policy 200.4, Assessment Process for the Chief Executive and Governing Boards of the University of North Carolina requires the University of North Carolina Board of Governors to use a qualitative and quantitative approach to presidential compensation and performance assessment. Policy 200.6, Policy on Delegation of Authority to the President, delegates to the president the authority to develop incentive compensation programs for chancellors (see 200.6.F and 200.6.H).

With each incentive program, 50% of the annual incentive is based on quantitative metrics, and 50% is based on the Board of Governors’ review of the president or the president’s review of the chancellor. The quantitative portion of the award is based on institutional performance on goals and metrics that have been identified by the Presidential Assessment Committee and approved by the Board of Governors for the president’s incentive compensation program in the areas of student success, affordability, and efficiency.

Quantitative Metrics

Institutions are graded in three-year performance periods. Performance period 2 (PP2) spans 2024-26. Data from 2023 was used to create the baselines for PP2, and data from 2026 will be used to set the baselines for Performance Period 3 (2027-29). These metrics are also included in the System’s performance-weighted funding model.

Performance Period 2 Metrics

  • 4-Year Graduation Rate (12.5%) – The percent of first-time, full-time students that graduate by the summer of their fourth year of study.
  • Undergraduate Degree Efficiency (6.7%)– The number of bachelor’s degrees produced per 100 FTE students.
  • Average Earned Credits per Year (12.5%) – The average number of credits earned by undergraduate students at their institution in a given academic year.
  • Average Debt at Graduation for First-Time Students (8.3%) – The average amount of federal debt accrued at the institution by in-state, first-time students.
  • Average Debt at Graduation for Transfer Students (3.3%) – The average amount of federal debt accrued at the institution by in-state transfer students that transferred from a UNC System or NCCCS institution.
  • Education and Related Spending per Degree (6.7%) – Amount of education and related (E&R) spending per degree and certificate produced.

Performance Period 3 Metrics

  • 4-Year Graduation Rate (12%) – The percent of first-time, full-time students that graduate by the summer of their fourth year of study.
  • Undergraduate Degree Efficiency (10%)– The number of bachelor’s degrees produced per 100 FTE students.
  • Average Earned Credits per Year (9%) – The average number of credits earned by undergraduate students at their institution in a given academic year.
  • Direct Cost of Attendance (10%) – The sum of tuition, fees, housing, dining, and books and supplies for in-state, full-time, undergraduate students.
  • Education and Related Spending per Credit Hour (9%) – Amount of education and related (E&R) spending per credit hour earned.

Goal Setting

Goals are set using a combination of national data, System data, and external factors and every institution is tasked with making the same rate of change during each performance period. Institutions are measured only against their own baseline, and goals are reflective of the baselines.