The University of North Florida’s Board of Trustees voted 11-1 on Wednesday to approve a multi-year employment contract for President-elect Michael P. Shannon. The agreement features a $750,000 base salary and a total potential compensation package approaching $1 million.

This decision marks a $225,000 increase in base salary over former UNF president Moez Limayem. It follows an intense debate among trustees over the structure of the performance incentive compensation, a bonus tied directly to achieving specific strategic goals.

Trustee Nikul Patel cast the sole dissenting vote. Patel opposed capping the incentive compensation rate at 30% and instead proposed increasing it to 50%. 

Under the approved 30% rate, Shannon could earn up to $225,000 in bonus pay, bringing his total potential compensation to $975,000. Raising the incentive to 50% would have expanded the potential bonus pool to $375,000 for a total package of $1,125,000, placing a significantly larger portion of his pay on performance outcomes.

“Let’s put our skin in the game and raise those numbers,” Patel said during the meeting.

Terms of the employment agreement

Central to the trustees’ discussion was whether Shannon’s incentive compensation should remain at 30% or rise to 50%. 

Patel said that higher incentive pay would tie compensation more closely to measurable results and give Shannon greater motivation to meet the university’s targets.

He said the university has routinely awarded bonuses despite shifts in institutional performance, emphasizing that key objectives such as building critical relationships should be strongly incentivized.

“If he makes those relationships, we should incentivize them and pay him for making them well,” Patel said.

Shannon’s contract officially begins Jan. 4, 2027, and concludes on June 30, 2030, unless modified. 

Because his term starts midway through the university’s July-to-June evaluation cycle, trustees established a prorated arrangement for Shannon’s initial six months. 

Under this provision, Shannon will be eligible for up to $50,000 in incentive pay based on early targets outlined in the contract.

Concerns and counterarguments from trustees

However, several trustees expressed caution regarding higher financial incentives, raising concerns that aggressive benchmarks might create unintended pressure on the institution.

Trustee Jack Boyle advocated for maintaining the 30% baseline during Shannon’s first year, allowing the board time to evaluate his initial impact before considering any adjustments in subsequent years.

“I think Dr. Shannon’s impact in year one on the performance metrics might be even less than it will be in years two or three,” Boyle said.

Trustee Christopher M. Lazzara concurred with Boyle, adding, “We can’t do it in year one; we don’t have time anyways.”

Patel pushed back, arguing that Shannon starting in January leaves ample time to establish metrics. He questioned why the board would limit Shannon’s earning potential in year one when Shannon himself expressed confidence in achieving early goals.

Final vote and next steps

Following deliberations, the Board of Trustees voted 11-1 to approve Shannon’s contract, setting his base salary at $750,000 with a potential annual performance bonus capped at $225,000.

The board retains authority to adjust the incentive percentage in future contract years and may reduce bonus payouts if performance targets are not fully met.

Michael Shannon is scheduled to meet with the Board of Governors next Wednesday, Sept. 30, for final approval as the University of North Florida’s eighth president.

 

 

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