The regents voted to implement new rules governing service on corporate boards just after the Chronicle broke a story about a UCSF employee who has made millions from companies that have, in turn, made millions from UCSF. Also, the regents voted to change their own bylaws, a move that some see as intended to limit public scrutiny.
Regents & Outside Compensation
7/18 – UCSF Medical Center CEO profits from firms doing business with hospital (SFChronicle): Mark Laret, the CEO of UCSF Medical Center, sits on the corporate boards of two companies that do millions of dollars of business with the public hospital. Laret’s compensation from the two companies exceeds $5 million. UCSF maintains Laret’s service is above board and that the CEO is not involved in purchasing decisions. At the heart of the controversy is whether Laret’s role to minimize costs for UCSF conflicts with his job to maximize profits for the two companies.
7/21 – UC regents toughen moonlighting rules for top executives (SFChronicle): Senior UC execs must explain how service on a corporate board or consulting work would benefit the UC system under new rules the regents approved. The rule would not apply to those who have already received permission to work outside UC. In other news, 19 top executives including nine chancellors, received 3 percent raises. See the action item here. More from the SacBee.
7/21 – Editorial: Tighten rules for moonlighting UC officials (LATimes): The LA Times editorial board came out in favor of tougher rules on moonlighting, including forbidding UC executives from serving on boards that do business with UC. The new rules approved by the regents do not forbid that practice.
7/21 – UC chancellors get raises – some for second straight year (EBTimes): Chancellor Dirks’ salary has increased by $30,000 since June 2015.
7/20 – UC Regents take steps to streamline board operations, dig more deeply into crucial issues (LATimes): The regents agreed to reduce the number of committees and to spend more time meeting as a full body. According to the article: “The proposal now affirms that all regents have the right to raise any issue at any time and that all open committee meetings will be videotaped and posted online. The board would retain the right to weigh in on all committee actions, rescind any decision delegating authority to UC administrators and maintain the right to investigate allegations of misconduct by a regent.”
7/15 – A Near Coup d’Etat at the University of California (AmericanThinker; NB this was written before the changes went into effect): Former Regent Velma Montoya characterizes the “streamlining” of the regents as a move to concentrate power in the hands of one committee and to limit public scrutiny.
7/18 – Katehi scandal at UC Davis called ‘worse than pepper spray’ (SacBee): Emails reveal the strategizing of Katehi’s office as the Bee broke news of the chancellor’s service on two corporate boards that raised ethical questions.
This & That
7/18 – UC regent named as chancellor of community college system (SF Chronicle): Eloy Ortiz Oakley will remain a UC regent as he takes over the state’s community college system.
7/19 -State funding cuts during the recession still shortchanging Cal State students, officials say (LATimes): The nation’s largest university system receives state funding worth $7,858 per full-time student, compared with $9,686 in 2007-2008. The system has had to deny admission to qualified students and defer maintenance on numerous buildings. At the same time, the system’s graduation rate lags behind the national average.
7/18 – Berkeley Student Killed in Terror Attack in Nice (IHE): The 20-year-old was one of 84 people killed in the attack. Three other Berkeley students, all in France on a study abroad program, were injured.
Public Higher Ed Finances
7/17 – Bonuses Push More Public-College Leaders Past $1 Million (Chronicle): Five public university leaders hit the $1 million compensation mark.
7/14 – Finances of City College’s President Are Under Federal Investigation (NYT): Feds are investigating whether CUNY President Lisa S. Coico misused research money to reimburse a private foundation that paid for the president’s personal expenses.