FAMU President James Ammons has reversed his decision to defer an $81,000 bonus “in light of tax consequences.”In a university-wide memo, Ammons said: “At the time of (trustees) approval, I deferred my acceptance. However, in light of tax consequences…I am requesting that you take the necessary actions to effectuate the payment of the bonus on December 17, 2010.”
Ammons announced last month that would defer an $81,000 bonus that was awarded to him based upon his performance in 2008-2009. His decision was based upon the tough budget situation that the university faces.
Members of the university’s Board of Trustees voted to give him the minimum bonus permitted by his contract. According to the language of the performance bonus clause: “Based upon his achievement of annual goals and objectives…Dr. Ammons shall receive an annual performance bonus. It is intended that said annual performance bonus shall be in the range of 25% to 35% of the annual base salary.”
Ammons’ base salary is $325,000 per year. Last year he accepted a 35 percent, or $113,750 bonus. He gave 50 percent to the FAMU National Alumni Association.
The president is in discussions with the board chairman concerning a “restructuring” of the bonus clause of his contract.