UNIVERSITY OF TEXAS SYSTEM

State senators posed tough questions Thursday to officials of the University of Texas System's outside investment company over a $1 million bonus for its chief executive, leading to an angry exchange in which the chairman of the company's board declared his resignation. "You can have my job – I resign. I'm out of here," said Robert Rowling, a UT regent who is chairman of the board of the University of Texas Investment Management Co. UT System officials and Gov. Rick Perry's spokesmen said they weren't sure whether Rowling was saying he was stepping down only as UTIMCO chairman or as a regent. Rowling was not immediately available for further comment. The wealthy Dallas businessman made the comment in an exchange with Republican Sen. Kevin Eltife of Tyler before the Senate Finance Committee. "It shatters the trust in government," Eltife said of the bonuses. "This is shameful." Rowling had said the bonus was for the year ending June 30. That was before the meltdown in financial markets. Rowling said UTIMCO bonuses were spelled out in a compensation contract and that the company has done better with its investments recently than many of its counterparts. After the confrontation, some senators turned more friendly and said they appreciated Rowling's service and hoped he wouldn't resign. But they questioned the $1.05 million bonus for UTIMCO CEO Bruce Zimmerman and $2.3 million combined for other staff members that were outlined in a critical letter by Perry and Lt. Gov. David Dewhurst. Shortly after Eltife's comments, Rowling decried what he called "abuse" by the senator and said he would resign. "We did what we thought was right. We felt like we had an obligation," Rowling said of the bonus decision made in November. He said he doesn't regret the decision but acknowledged that because of the sinking economy there probably will be changes in how UTIMCO awards bonuses.