UC Professors Fail to Report Outside Income

  • Neal Hermanowicz has led the movement disorders program at the University of California Irvine for almost 20 years, where he earns more than $380,000 a year in salary and bonuses.
  • He also adds to his income by consulting for drug companies. Since 2014, he has consulted for 11 companies earning a total of at least $588,000. In 2017 he was Acadia Pharmaceuticals’ highest-paid physician consultant in the US.
  • Under University of California rules and policies, Hermanowicz should have reported his outside income to UC Irvine and turned over more than $200,000 of it to the school from 2016 to 2018. His academic department would then be responsible for deciding how much to keep and how much to return to him.
  • A review conducted by ProPublica of almost 90 UC system health faculty members, who had among the highest outside incomes at four medical schools, found that this type of behavior is not uncommon with about two-thirds, including Hermanowicz, not reporting all earnings as required.
  • ProPublica examined the UC records as part of an effort to build Dollars for Profs, a national database of faculty outside income. The examination found the failure of health sciences professors to report earnings within the UC system could be shortchanging the university and California taxpayers. Reason being, the UC system requires most of its 4,000-plus health sciences faculty members to turn over to it any earnings above an annual cap of $40,000 or 40% of their base pay, whichever is higher.