Performance Bonuses for Permanent Faculty and Exempt Professional Staff (EPS) Employees Policy 635

I. Purpose

This Policy sets forth specific definitions and procedures for the payment of performance bonuses to permanent  Faculty and Exempt Professional Staff (EPS) employees of The University of North Carolina School of the Arts (“University”). Performance bonuses may be awarded only for an employee’s extraordinary achievements in the course and scope of their university employment, as defined in this Policy. Any such bonuses will be paid only in accordance with the provisions of this Policy. This Policy is intended to meet the requirements for performance-based bonuses as outlined by UNC Board of Governors Regulation 300.2.14.2[R].

II. Scope of Applicability

This Policy applies to all permanent Faculty and EPS employees at UNCSA, except the Chancellor.

III. Policy

A. Policy Statement

Within the parameters outlined below, performance bonus compensation may be awarded to permanent  Faculty and EPS  employees to reward performance of extraordinary contributions, while ensuring equal opportunity and consistency of application across similarly situated groups of employees and positions. Performance bonuses are subject to the following requirements:

1. Decisions concerning performance bonus compensation must not discriminate and may not be based in whole or in part on any employee's protected status.

2. No University employee is automatically entitled to a performance bonus.

B. Sources of Funds

Performance bonuses may be funded from any source, including state or non-state appropriations, so long as the funding source permits an expenditure for this purpose. For state funds, such use must be permissible under the policies of the Office of State Budget and Management.

C. Eligible Employees and General Requirements

1. Only employees in permanent Faculty and EPS  positions are eligible for performance bonuses under this Policy. 

2. Performance bonuses may be awarded only after an employee’s manager has completed an annual performance appraisal of the employee.

3. The University will not award any performance bonus under this Policy to an employee who:

a. has received an end of appointment notice;

b. did not receive an overall rating of at least “Meeting Expectations” on their most recent annual appraisal; or  if an annual performance appraisal was not required, is deemed to not be in “good standing”;

c. is currently working under a performance improvement plan; or

d. is no longer actively employed in their position. 

4. Receipt of a performance bonus does not preclude an employee from receiving a sign-on or retention bonus as may be allowed by policy.

5. Receipt of a performance bonus does not preclude an employee from receiving a retention base salary increase for a competitive offer as allowed by existing salary administration policy and regulation. 

D. Performance Bonuses for  Faculty and EPS  Employees

1. Purpose of Performance Bonuses

Performance bonuses are discretionary and are intended to reward extraordinary achievements in the course and scope of an employee’s University employment. “Extraordinary achievements” means exceptional performance beyond normal expectations of the employee’s position.
Performance bonuses are not intended to supplement base salary adjustments when deemed necessary and appropriate, such as addressing essential labor market or equity situations. 

2. Performance Achievements

A performance bonus must be based on at least one of the following specific, demonstrated, extraordinary achievements, as documented in the employee’s annual performance appraisal and in alignment with the strategic goals of the University:

a. Extraordinary Contributions: The employee has made extraordinary contributions to the fulfillment of the goals, mission, and objectives of the department, school/division, and/or University. Such contributions must be visible, measurable, and broadly acknowledged by colleagues and school/division and/or University administrators.

b. Extraordinary Collaboration/Creativity: The employee has identified and implemented extraordinary creative and innovative ideas or solutions that increase efficiency or effective use of University resources, the effects of which must be apparent at the school/division or University level and must be visible, measurable, and broadly acknowledged by colleagues and school/division and/or University administrators.

c. Extraordinary Results: The employee has delivered extraordinary results in the areas of teaching, research/creative practice, and/or service, the results of which must be visible, measurable, and broadly acknowledged by colleagues and school/division and/or University administrators.  

3. Bonus Amount

The University will annually determine pools of available central funding for Faculty and EPS  performance bonuses. A performance bonus awarded to an employee in a single fiscal year may not exceed the thresholds established in UNC Board of Governors Regulation 300.2.14.2[R].  Recommended performance bonus amounts are subject to funding availability.

4.  Bonus Payout

a. A performance bonus should be paid as close to the most recent year’s performance appraisal cycle as reasonably possible.

b. A performance bonus may be paid in one lump sum or in installments, at the University’s discretion, paid in the fiscal year in which it was awarded. 

c. Performance bonuses are subject to retirement contributions to either the Teachers’ and State Employees Retirement System or the UNC Optional Retirement Program for employees participating in one of those programs. 

d. If the employee leaves the position in which the performance bonus was earned prior to the full bonus being disbursed, then the employee will receive the remainder of the performance bonus at the time of separation from the position.

E. Performance Bonus Requests 

Following an employee’s annual appraisal, the employee’s manager may submit a performance bonus request to the appropriate Vice Chancellor, Dean, or division head.

For EPS  employees, the Vice Chancellor or division head must submit all requests to award any performance bonuses to the Human Resources Department. For Faculty, the Dean must submit all requests for any performance bonuses to the Office of the Provost and then submitted to the Human Resources Department.

All performance bonus requests for  Senior Academic and Administrative Officers (SAAOs) must be approved by the Board of Trustees.

All performance bonus requests must include the documented justification based on the performance achievements identified in Section III.D.2 above.

IV. Revision History

A. Policy Effective July 1, 2025.