Nevada System of Higher Education
System Administration
2601 Enterprise Road
Reno, NV 89512-1666
Phone: 775-784-4901
Fax: 775-784-1127
System Administration
‘5550 West Flamingo Road, Suite C-1
Las Vegas, NV 89103-0137
Phone: 702-889-8426
Fx: 702-889-8492
EMPLOYMENT AGREEMENT
Daniel J. Klaich, Chancellor
Nevada System of Higher Education .
July 1, 2012 - June 30, 2017
This employment agreement is effective on the 1" day of July 2012, by and between the Board of
Regents of the Nevada System of Higher Education (hereinafter referred to as the “NSHE” or
“employer”) and Daniel J. Klaich, Chancellor of the Nevada System of Higher Education
(hereinafter referred to as the “Chancellor” or “employee”) and it cancels and replaces any and
all prior employment understandings and agreements between these two parties. This
Supplement, the Terms of Employment to which it is attached and Exhibit A attached hereto, are
collectively referred to herein as the “Contract.”
1. The Board hereby appoints and employs Daniel J. Klaich to be Chancellor of the
Nevada System of Higher Education (hereinafter referred to as the “NSHE”)
Employee accepts and agrees to such employment. Chancellor shall perform or
comply with all duties as set forth in this Agrcement, and as required by law, NSHE
Code, NSHE Policies, and the duties of the Chancellor enumerated in the Board of
Regents’ Bylaws, Article VIL, Sections 1-3. Chancellor agrees to faithfully,
industriously, and with maximum application of experience, ability, and talent, devote
full-time, attention, and energies to the duties as Chancellor of the NSHE. The
Chancellor acknowledges that while serving as Chancellor he is a public officer and
is subject to the Nevada Ethics in Government Law, which is set forth in NRS
281A.400 to 281.660.
The Chancellor’s employment, hereunder, shall commence July 1, 2012 and shall
continue until this employment agreement terminates upon the close of business at the
Nevada System of Higher Education on June 30, 2017; provided that this provision is,
subject to the terms and conditions of Paragraph 8 hereof concerning termination.
3. While serving as Chancellor, compensation will be an annual base salary of
$303,000.00, together with such additional fringe benefits as are provided for all
other professional employees of the NSHE. Compensation is subject to mandatory
salary reductions or unpaid leave as imposed by the Nevada State Legislature and the
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Chancellor Employment AgreementBoard of Regents, The Chancellor shall be eligible for an annual cost-of-living
allowance (COLA), as approved by the Nevada State Legislature, and merit increase,
as approved by the Board of Regents.
4. Employee's performance of job duties and responsibilities will be evaluated on an
annual basis. The evaluations shall be conducted in accordance with written
guidelines on file in the Chancellor's Office. In the next-to-the-last year of this,
Contract, Employer and Employee, or their designees, will meet to determine whether
Employee’s employment with the NSHE shall be renewed upon mutually aeceptable
terms and conditions.
5. While serving as Chancellor of the Nevada System of Higher Education, perquisites
shall consist of an annual automobile allowance and an annual housing allowance
provided in recognition of the requirements of this position and in lieu of furnishing
an automobile and house to the Chancellor, as follows
a, An annual automobile allowance of $8,000, which shall be in lieu of
reimbursement for use of a private vehicle on official business within a 50
mile radius of the Chancellor's office. This allowance shall be paid in two
equal payments of $4,000 in July and January of each fiscal year. In partial
fiscal years of service as Chancellor, the automobile allowance will be
prorated
b. An annual housing allowance of $24,000.00, to be paid in two equal payments
of $12,000.00 in July and January of each fiscal year. In partial fiscal years of
service as Chancellor, the housing allowance will be prorated.
.penditures from the host account must conform to policies established by
the Board of Regents. Host account funds may be used to pay for
transportation, lodging, and meal expenses (in accordance with the standard
state reimbursement rates) of appointee’s spouse when appointee’s spouse is
expected to accompany appointee in representing NSHE. Out-of-state travel
by appointee’s spouse will require prior approval by the Chair,
6. The Chancellor shall have the use of a $10,000.00 host account only while serving as
Chancellor of the Nevada System of Higher Education. Expenditures from the host
account must conform to policies established by the Board of Regents and the
policies of the Chancellor's Office.
Chancellor Employment Agreement7. The NSHE’s financial commitment to the employee in the position of Chancellor of
the Nevada System of Higher Education extends only for the term of the agreement.
The parties to this employment agreement expressly understand and agree that the
provisions of this paragraph constitute the notice to the employee of the nonrenewal
of his employment at the Nevada System of Higher Education upon the close of
business at the Nevada System of Higher Education on June 30, 2017, and that,
notwithstanding any provision of the NSHE Code to the contrary, no other not
nonrenewal of employment shall be required.
of
8, The Chancellor serves at the pleasure of the Board of Regents. The Chancellor may
‘be removed by the Board of Regents at any time for any reason, and the contract
terminated upon payment of the remaining contract base salary only. Upon
termination, the Chancellor shall not be entitled to any remaining payments for
housing allowance, automobile allowance, host account, or other perquisites. In the
event that the Chancellor holds tenure in an appropriate academic department at one
of the two universities the Chancellor shall be reassigned from the Chancellor
position to an employment position as a full time member of the academic faculty at
one of the two universities. The terms and conditions of the reassignment will be
pursuant to the terms of this agreement and will follow Title 4, Chapter 3, Section 27
(1-3), outlining presidential transitions. The Chancellor shall be subject to discipline
for cause by the Board in accordance with the provisions of Exhibit A, attached
hereto and by this reference incorporated he:
Accepted on behalf of the Employee:
afl,
ale
Accepted on behalf of the Board of Regents of the Nevada System of Higher Education:
Mle 2-2-1
Jason Ggedes, Chairman of the Board of Regents Date
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Chancellor Employment AgreementEXHIBIT “A” TO EMPLOYMENT AGREEMENT
PROVISIONS FOR DISCIPLINE OF CHANCELLOR
1. Discipline for Cause
This Employment Agreement may be terminated for cause or the Chancellor may be disciplined
for cause by the NSHE Board of Regents. Without regard to and not subject to any of the
provisions or procedures of the Board of Regents’ Code, Title 2, Chapter 6, the Board of Regents
‘may take any of the following disciplinary actions for cause against the Chancellor:
a. Issue a warning;
». Issue an oral or written reprimand;
c. Removal from office and termination of the employment contract
2. Progressive Discipline
Except in cases of serious violations which have a substantial negative impact on the System or
on any institution or unit, principles of progressive discipline shall be followed. ‘The less severe
measures of warnings or reprimands are first imposed and the more severe measure of
termination is applied only if the less severe measures are ineffective.
3. Prohibited Acti
ity
The following conduct shall constitute cause for imposition of any of the discipline set forth
above:
‘lure to perform the duties for which the Chancellor is employed.
Failure to maintain a required level of performance as provided in Title 4, Chapter
2, Section 4 of the Nevada System of Higher Education Code.
¢. Incompetence or inefficiency in performing the duties for which the Chancellor is
employed.
Insubordination, which is defined as disobedience of a lawful written order.
e. Falsification of employment applications or documents submitted to the System,
its member institutions or its special units, or making other false or fraudulent
representations in securing employment.
f. Intentional misrepresentation of a material fact that has a substantial adverse
impact on the System, its member institutions or its special units.
Conviction of any criminal act involving moral turpitude.
Being under the influence of intoxicants, or, without a valid medical excuse,
being under the influence of controlled substances as defined in the Nevada
Revised Statutes, while on duty, due consideration being given to NRS 284.379.
i. Unauthorized absence from duty or abuse of leave privileges.
j. Personal or professional conduct which shows that the Chancellor is unfit to
remain in the position or which has an ascertainable harmful or adverse effect on
the efficiency of the institution.
age pA
Chancellor Employment Agreement
Se4, Disciplinary Procedure
The Board of Regents shall give the Chancellor written notice of intent to discipline. ‘The written
notice must describe the circumstances of the alleged prohibited conduct and must include all
available materials and documentation to support the charges. The Chancellor may present a
written response to the Board within ten (10) working days after receipt of the notice. The
Chancellor may appeal a proposed termination, but not other discipline, to the Board of Regents,
using the procedures established in Section 6.13 of the Code, Title 2, Chapter 6, so far as they
can be made applicable and subject to the following: the appeal must be filed with the Chief
Administrative Office r of the Board of Regents. The appeal must be filed within ten (10)
working days after receipt of a written notice of intent to terminate from the Chancellor. The
imposition of termination is stayed pending a decision from the Board of Regents on the appeal.
‘There is no right to an evidentiary hearing with regard to any proposed discipline,
5. Effect of Termination on Compensation of Chancellor
a, Upon termination for any of the causes set forth in Sections 3. e-h hereinabove, in the
event the Chancellor does not hold tenure, the Chancellor shall not be entitled (o the
payment of any salary and shall not be entitled to payment of any remaining housing
allowance, automobile allowance, host account, other perquisites or salary
supplements funded by a foundation. Upon termination for any of the causes set forth
in Sections 3. a-d or 3. i-j, hereinabove, in the event the Chancellor does not hold
tenure, the Chancellor shall be entitled to the lump sum payment of base salary only
for the balance of the remainder of this Contract term
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Chancellor Employment Agreement