Brodhead Updates Employees on University Financial Status

Dear Colleagues,

I write to give a brief update on the financial state of the
University.

As you know, the economic downturn of 2008-09 significantly
reduced our endowment income and brought us a period of profound uncertainty.
Since that time, with cooperation from the whole Duke community, we have
achieved sizeable reductions and identified efficiencies that will save money
for many years to come.  Coupled
with reviving financial markets, these changes have put the university's budget
back on a sustainable footing.

Many of our revenue sources remain uncertain, so we need to
maintain the self-discipline of the past two years.  But it's time to return to a more normal approach to
recognizing the good work of Duke employees. I am happy to announce that we will
resume merit-based pay increases this year. The details of the merit increase
program, which will be tied to performance reviews, will be communicated to
individuals later this spring and will be effective July 1.

It is appropriate that the whole Duke community should
benefit from our improving financial circumstances, since you helped to create
the improvement. In the face of financial challenges, Duke's workforce took on
a shared sacrifice. As you know, the suspension of the annual pay raise for the
last two years protected hundreds of jobs at Duke, and prevented the widespread
layoffs suffered elsewhere. You approached our financial crisis with energy and
creativity, ensuring that Duke's essential values were never compromised.

I am proud of the fact that in the face of hardships, we
never lost our focus on our core mission. 
I want to convey my profound thanks for your help in getting us through
a difficult time.

Sincerely,

Richard H. Brodhead

President of Duke University