August 3, 2008
Contributed by Thomas Yoshida
This subject typically attracts widespread media attention, so I wanted to make sure you were aware of the filing, and to let you know that you are able to view the document at http://www.ksbe.edu/newsroom/filings/trustee_compensation_2008_doc01.pdf
The Trustee Compensation Committee, per a 1999 court order, convenes no less than every three years to study and recommend a level of compensation for Kamehameha's trustees that is deemed "reasonable under the circumstances." In 2007, the Court appointed businessman (and KS graduate) Michael Rawlins, trust attorney Roseanne Goo and accountant Douglas Goto to the Committee. The Committee then hired Mercer, LLC, an independent, San Francisco-based consulting firm to evaluate the factors and data relating to trustee compensation.
The Committee is independent of Kamehameha Schools and reports directly to the court. The current filing is being reviewed by the Attorney General's office, the court's Master overseeing Kamehameha Schools, Mr. David Fairbanks, and by our Board. A Probate Court hearing on the report is scheduled for August 29, 2008. Probate Court makes the final determination on Trustee compensation.
The report and supporting exhibits comprise a document in excess of 200 pages. In summary, the Committee recommends a base retainer of $75,000/year for each trustee and a $1500 meeting fee for each Trustee per meeting, with a cap on the number of compensable meetings set at 75 – representing approximately 1.5 meetings per week, on average, per year. The Chairman of the Board would receive an additional retainer of $30,000 in recognition of his/her additional responsibilities.
In its final report to the Committee, Mercer, LLC concluded that the recommended terms "provide an appropriate level of compensation to the Trustees given their time commitments and relative to the market comparability data described in this report. We also believe that this compensation program is competitive and will support KS' mission and vision as it recruits highly qualified Trustees in the coming years."
The Committee and Mercer, LLC also observed, among other things, that the issues regularly confronted by the Trustees, from expansion of the Schools under the new Education Strategic Plan, to improving the quality and diversification of the endowment, land use and environmental issues, and litigation concerning admissions policies are highly significant, complex and time consuming matters that require a substantial commitment of time above and beyond that which is required of a typical corporate board.
Again, to see a copy of the report and for more background on the Committee's process for developing its recommendation, go to http://www.ksbe.edu/newsroom/filings/trustee_compensation_2008_doc01.pdf
Mahalo for your continuing support of Kamehameha Schools.
Ann Botticelli, Vice President
Community Relations & Communications
Report of the Trustee Compensation Committee (Adobe PDF, 14 MB)
Kamehameha Schools’ policy is to give preference to applicants of Hawaiian ancestry to the extent permitted by law.
