Traverse City Record-Eagle

Archive: Friday

Related Photos

  • Jan-Michael Stump

    NMC BOARD
November 20, 2008

NMC's Nelson may get vacation payouts

College president could get $13,251 for unused days

By SHERI McWHIRTER

TRAVERSE CITY -- Northwestern Michigan College trustees could approve contract changes for the college president that include big payouts for unused vacation time.

NMC President Tim Nelson will receive $164,035 in salary this year and could get an extra check for $13,251, if college trustees approve his draft contract Monday evening. It's a potential windfall intended to decrease his 71 accrued vacation days to 50, a number that would become the new maximum for annual vacation carryover.

If Nelson doesn't take his allotted vacation time each year, he'd be paid for days he did not take off, though the payout would reflect a reduced rate of his salary.

Nelson contends he doesn't have enough time to use his annual vacation days.

"My schedule doesn't really allow it. I make the choice to either take vacation days or do the work that needs to be done," Nelson said. "It's hard for me to take five weeks of vacation in a given year."

Nelson annually earns 25 vacation days and his balance of 71 days accumulated during his seven-plus years at the community college.

That buildup of vacation time has been a topic of discussion among NMC trustees for some time, said Trustee Bill Myers.

"We really want him to take his vacation. It's important. People are given vacation for a reason. Everybody needs down time," Myers said.

The proposed vacation policy would limit Nelson to 50 days of accrued vacation at the end of each fiscal year, following this year's potential payout. Nelson must surrender any unused vacation time in excess of that for a cash payment, if his draft contract is approved next week.

That would bring Nelson's contract stipulations regarding vacation in line with all other college employees, said NMC Trustee K. Ross Childs, who chairs a committee negotiating Nelson's contract.

"The board intends to take a strong position encouraging Tim to take regular vacations," Childs said.

Future vacation day payouts would drop the value of the time to 65 percent of the initial worth, Childs said.

Each of Nelson's vacation days are worth $631 until he receives another pay increase.

The loss of value to future vacation payouts is meant to incite Nelson to schedule time off, Childs said.

Currently there are no limits on the number of vacation days Nelson can compile. He would be paid for 100 percent of that accrued time when he leaves NMC, according to the current contract.

That translates into a large, looming expense for the college -- now valued at $44,801 for all 71 days -- unless there's a reduction in Nelson's stockpile of vacation days.

"We don't want to have too much financial exposure," Myers said.

NMC trustees will meet to consider Nelson's contract at 6:30 p.m. Monday at the Oleson Center. They last approved revisions to his contract in March 2006, when they removed an annual bonus system.

Nelson's contract expires in June 2011.

Nelson's recent contract negotiations also included his request for a $1 million life insurance policy, a perk that would have doubled his current $500,000 life policy. That figure is meant to be split between NMC and his beneficiaries.

Nelson said he asked that the $1 million policy be removed from his draft contract late last month, after he learned costs were significantly more than expected because of his history with prostate cancer two years ago.

Text Only