Jim Hackett's Appointment Letter
Michigan has released the October 31 letter to Jim Hackett setting forth the terms of Hackett's employment as Interim AD. The text of the letter is below (LINK for original), with significant points including the following:
- Hackett's appointment was expressly subject to the regents' approval.
- Hackett reports directly to Schlissel, and gets $600,000 per year as base salary.
- The term is indefinite and he serves at the will of Schlissel.
- Hackett gets moving expenses up to $50K, plus a monthly housing allowance.
- Hackett can continue to serve on various external boards of directors, subject to UofM conflict of interest policies.
- Hackett cannot take on any other work without Schlissel's approval.
I've no issue with any of this - Hackett is stepping into a position of great responsibility, and the pay seems to be in keeping with the role.
UNIVERSITY OF MICHIGAN
Mark S. Schlissel
President
2074 Fleming Administration Building 5113 Thompson Street
Ann Arbor. MI 481094340
T: 734 764-6270 F: 734 936-3529
October 31, 2014
Personal and Confidential James Hackett
Dear Jim,
This letter is to confirm my offer and your acceptance of the position of Interim Athletic Director at the University of Michigan, subject to approval by the Board of Regents. As Interim Athletic Director, you will report directly to me.
Your appointment will be effective November 1, 2014. The term of your appointment is indefinite, at the will of the President, and is expected to continue until such time as a new Athletic Director is installed. Your salary will be set at the annual rate of $600,000. If you choose to do so, you will be eligible to participate in the University's benefit programs offered to regular faculty and staff; as may be amended from time to time. This includes health insurance, prescription drug, dental, vision, legal, life insurance, retirement savings programs, dependent and medical care flexible spending accounts, short term and long term sick and disability plans, and vacation, holiday and season days. In addition, the University will provide you with a non-elective, institutional 403(b) contribution to be concurrent with the appointment and in accordance with any pre-existing retirement plan and applicable IRS limits.
In accordance with NCAA requirements, you shall provide a written detailed account annually to the president or chancellor for all athletically related income and benefits from sources outside the institution.
The University will assist you in locating a furnished rental to accommodate your household while you are in Ann Arbor and will reimburse you for reasonable moving expenses up to 1/12th of your base annual salary. The University will also provide you with a monthly housing allowance equal to the cost of the rental that you secure (grossed up for taxes). If you should have to sign a lease and your appointment ends before the term of the lease expires, the University will assume any liability for payments under the lease.
You may continue to serve on any external boards on which you currently serve during your term of this interim appointment in accordance with University regulations on outside employment and conflict of interest. Consistent with existing University policy, you must discuss with and seek approval from me prior to accepting any new appointments. Any other consulting, professional engagements or contracts are subject to my prior approval, which will not be unreasonably withheld.
All other terms and conditions of your appointment will be those generally applicable to University employees.
I deeply appreciate your willingness to serve the University of Michigan in this capacity, and I look forward to working with you.
Sincerely,
Mark S. Schlissel President
I accept your offer of appointment as Interim Athletic Director for the University of Michigan in accordance with these terms.
Signed as of 3NOV14
November 11th, 2014 at 9:59 AM ^
Brandon making ?
November 11th, 2014 at 10:03 AM ^
November 11th, 2014 at 10:04 AM ^
If I'm reading THIS right, his base salary this year was $900,000. The contract extension reminds me of ND's untimely extension of Weis's head coaching contract.
November 11th, 2014 at 4:44 PM ^
I find it pretty amusing that Jabba the Weis will still be one of the highest paid coaches in the country for the next few years, despite being unemployed, courtesy of nd and Kansas. Actually miss him; college football just isn't the same without him waddling down the sidelines and spouting off about his decided schematic advantages...
November 11th, 2014 at 11:25 AM ^
He took about an 80% pay cut.
November 11th, 2014 at 1:38 PM ^
Thank goodness we got a good deal! HOWEVA, I'd like to see the numbers you're referencing. At over $800k in 2011 (assuming the above linked article is correct) he would've had to be making ~$4 million. This link (Forbes) says Dominos paid him just under $2.1 million. Also this:
"He continues to serve as Non-executive Chairman of Domino's." and "In addition to his service on the Company's Board of Directors, he is a director of Domino's Pizza, Inc. and Herman Miller, Inc."
It seems that there is always more to the story anytime money is discussed wrt DB.
EDIT: Here is an article that came out right after his hiring citing base salary and his 2008 earnings from Dominos ($3.228 million).
November 11th, 2014 at 10:12 AM ^
my ass...
This communication, including attachments, is for the exclusive use of addressee and may contain proprietary, confidential and/or privileged information. If you are not the intended recipient, any use, copying, disclosure, dissemination or distribution is strictly prohibited. If you are not the intended recipient, please notify the sender immediately by return e-mail, delete this communication and destroy all copies.
November 11th, 2014 at 10:16 AM ^
But when the University of Michigan publishes the letter (as linked above), it's ... uhm ... no longer confidential.
It was confidential when Schlissel sent it. But once the agreement was signed, it headed into the public record.
If you were joking, my apologies.
November 11th, 2014 at 12:46 PM ^
yes yes, I am aware...
the 7 dumb fucks who upvoted you need to get a sense of humor...
November 11th, 2014 at 12:56 PM ^
Well, they're probably not as smart as you. I'm plainly not, because I did not get the joke.
But "dumb fucks"? You may be taking this stuff too seriously.
November 11th, 2014 at 10:18 AM ^
Pretty sweet deal to earn $600K for an indefinite period until the new guy is hired. And, oh yeah, you're charged with hiring the new guy.
November 11th, 2014 at 10:27 AM ^
Agree it's a pretty sweet deal in general. However Hackett made $5.8M last year so I doubt he really cares about the money.
November 11th, 2014 at 10:37 AM ^
If he didn't care about he money he'd do it for $1.
He is basically retired and this is a sweet gig. I am sure the dinero is not priority #1 but he is not doing it as a volunteer gig.
I do think this relationship between football coach --> AD --> Univ president has to be one of the strangest on the planet. The higher you go up the authority food chain, the lower you are paid!
November 11th, 2014 at 10:25 AM ^
If you should have to sign a lease and your appointment ends before the term of the lease expires, the University will assume any liability for payments under the lease.
If only my landlord back in the day had agreed to similar terms. I tried to talk them into it, I really did, but no dice. Also, apparently, no parking in HIS spot, as I found out when Sakstrup's showed up once.
November 11th, 2014 at 10:57 AM ^
will be $3.35 instead of $5? I suppose that's progress. . .
November 11th, 2014 at 11:06 AM ^
doesn't try to market Michigan Athletics like office furniture we'll be ok.
November 11th, 2014 at 11:21 AM ^
None of these?
November 11th, 2014 at 11:45 AM ^
I take your general point, but a couple of years ago I had the opportunity to do business with Steelcase and caught a long glimpse of their inner-workings and culture. Steelcase is innovative in its marketing approaches, and has a great reputation for customer service. And they view their customers as quasi-partners, with whom they strive to have a long-term relationship. And the marketing is first-class - in part because their customer base includes many Fortune 500 companies. My understanding is that the high-end office furniture business does not make its money on one-off sales, and is largely BtoB focused. If we get treated like Steelcase customers, I think we'll be much better off.
Compare that to the customer experience and culture of Domino's Pizza. There you are getting a rapidly consumable commodity promoted with the cheesiest (hah!) marketing you can imagine. (Avoid the Noid!) And Domino's is managing franchisees who actually interface with the consuming public. So they are a classic "pump and dump" business, that will engage in any promotion in order to increase sales.
Of course we don't want Michigan Athletics marketed or treated like a business, and we don't want the alumni and fans treated as mere "consumers". But it seems to me that the Steelcase approach to its customers is much more attractive than the Domino's approach.
November 11th, 2014 at 11:23 AM ^
I attended an event in Los Angeles last week to hear from Dr. Schlissel. This was a gathering of well-heeled donors, donors, and people who do nice things for the University. Maybe around 200 people were in attendance. The University contingent included Dr Schlissel, people from the alumni development/fundraising department, and people from athletic development/fundraising department, a few regents, and support staff (as far as I could tell).
A few things I noted – and take it fwiw:
· Dr. Schlissel spent the first 10 minutes of his talk addressing UM athletics and the athletic director.
· He spoke with a bit of humor and had command of the room.
· He noted while he was intellectually aware of the prominence of UM Athletics, he quickly realized how important athletics are to the fabric and sense of community at UM.
· He made it a point to note that athletics, in particular football, was something that brought the alumni across the globe together and that was important to the culture of the University.
· He reiterated his appreciation of Dave Brandon’s work as Athletic director, and like in the AD press conference, noted Dave’s lifelong contribution to the University including he and his wife’s $2 million dollar donation to Mott’s Children’s Hospital.
· He said, “I hold Michigan Athletics to the same standard of excellence as I hold Michigan academics.” (paraphrasing) He noted that like many of the different schools at UM which are ranked consistently in the top 10, he expects Michigan athletics to compete at the same level, and expects them to be "Leaders and Best"
· The general sentiment I got from those who saw Schlissel speak is that UM is in really good hands. He seems to get it on all Michigan fronts.
· Afterwards, one prominent athletic booster, who I know was a Brandon supporter, told me he was unexpectedly impressed and won over.
A few other tidbits from people who are connected to the Athletic Department.
· Jim Hackett has been clear he does not want the AD job long term.
· There was no timetable on the AD search – at least from the people I spoke to or they weren’t willing to tell me, if there was.
· Dave Brandon has been helping Hackett with the transition. They have a long standing personal and professional relationship.
· Dave and Jim are colleagues. They played together at UM for Bo. They both started their careers at P&G and served together on common boards, and councils.
sorry for any ypos or grammar mistakes, i tried to proofread but...tl/dr
November 11th, 2014 at 11:37 AM ^
November 11th, 2014 at 11:58 AM ^
wasn't cobbled together overnight. I would wager MS had decided DB was gone long before DB "resigned" and had his replacement in hand before the resignation. It augers well for those of us that want Hoke gone as well.
November 11th, 2014 at 12:32 PM ^
Mary Sue decided to fire DB after he slipped her the roofie..alledgedly
November 11th, 2014 at 12:23 PM ^
That's much less pay than I would have guessed. Not that I'm complaining, though.
November 11th, 2014 at 3:12 PM ^
"Hackett's appointment was expressly subject to the regents' approval."
That's standard operating proceedure for just about any administrative appointment at U-M.