A meeting of the Compensation Committee of the Board of Trustees convened at 9:33 a.m. on Friday, October 2, 2020, at Purdue Polytechnic High School Englewood, located at 3029 E. Washington Street in Indianapolis. In adherence to the Protect Purdue policies amid the ongoing COVID-19 pandemic, everyone in the room was wearing a mask and restrictions were placed on the number of visitors in the room. Members of the media and the public who wished to observe the meeting virtually were provided such instructions.

All committee members were present in person: Malcolm DeKryger, chair; Gary Lehman; and Don Thompson. All other trustees were present: Sonny Beck; Michael Berghoff; JoAnn Brouillette (virtually); Theresa Carter; Vanessa Castagna; Michael Klipsch; and Noah Scott.

Officers and administrators in attendance were: Mitch Daniels, president; Jay Akridge, provost and executive vice president for academic affairs and diversity; Chris Ruhl, chief financial officer and treasurer; Jim Almond, senior vice president, assistant treasurer, and assistant secretary; Steve Schultz, general counsel; Janice Indrutz, corporate secretary and senior executive assistant to the Board; and Ron Elsenbaumer, chancellor, Purdue University Fort Wayne (virtually).

I. APPROVAL OF MINUTES

Upon proper motion made and duly seconded, the Compensation Committee voted unanimously to approve the minutes of its last meeting convened on February 7, 2020.

II. DETERMINATION OF PRESIDENTIAL PERFORMANCE AT-RISK PAY FOR 2019-2020

Trustee DeKryger reminded the Committee and other members of the Board that the metrics by which the at-risk portion of President Daniels’ salary would be determined were approved by the Board on December 6, 2019. He reviewed the key metrics categories of student affordability, student success, fundraising, and operations, and highlighted that, under President Daniels’ leadership, the time to degree dropped to 3.98 years and the freshman to sophomore retention rate was at an all-time high of 93.5%. Trustee DeKryger submitted three additional significant achievements, including the success of the Polytechnic High School initiative, and he reported that the only goal President Daniels did not achieve within the metrics was the fundraising goal, which Trustee DeKryger attributed to the global COVID-19 pandemic. Trustee DeKryger then recommended to the Committee that President Daniels be awarded 89% of his at-risk salary in the amount of $191,572.50.

Trustee Lehman remarked that, though President Daniels’ compensation within the Big Ten was average, President Daniels was not an average president. Trustee Thompson asserted that the success of the Polytechnic High School initiative was significant because, by cultivating a talented pool of young, underrepresented individuals who would attend Purdue, the university moved forward. Chairman Berghoff remarked that President Daniels had worked hard to earn the 89% because of the considerable leadership challenges created by the COVID-19 pandemic, and he said the Board was very pleased with President Daniels’ performance. Trustee Klipsch offered that President Daniels’ biggest achievement was the fact that the university was open, and, prior to the pandemic, President Daniels had been on track to achieve the fundraising goal.

Upon proper motion duly made and seconded, the Compensation Committee voted unanimously to award President Daniels 89% of his at-risk salary. Supporting materials were filed with the minutes.

III. ADJOURNMENT

By consent, the meeting adjourned at 9:46 a.m.