Public leaders on private boards

By The Gazette Editorial Board

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Public university presidents who serve on corporate boards must never lose sight of their primary duties: To lead, direct and advocate for the public institutions they serve.

And as long as it doesn't interfere with or compromise those duties, we see no problem with university presidents serving on private corporate boards.

There could be benefits, as well, to having a voice from public education on the boards of for-profit companies. The presidents' presence and influence can be beneficial to their institutions, and help them and private sector leaders understand how their missions can intersect in ways that serve the public interest.

So we disagree with Sen. Chuck Grassley's blanket criticism of the practice. Grassley has said he's troubled by the time commitment and potential conflict of interest of serving on private boards.

Valid concerns, but we see nothing inherently wrong with university presidents serving on such boards, or being compensated for their service - as it's practiced in Iowa, anyway.

The Iowa Board of Regents does not limit the number or types of boards the three university presidents can serve on, but presidents must disclose those positions.

As a matter of service, and to maintain close ties with the community and like-minded groups, presidents of Iowa's three public universities serve on external boards of their own choosing. Generally, they are unpaid positions with non-profit organizations or education groups.

But occasionally, a president will serve on a corporate board, and be compensated. Iowa State University President Gregory Geoffroy earns about $16,000 a year to serve on the board of directors for Bankers Trust of Des Moines. University of Northern Iowa President Ben Allen earns $10,000 each year for serving on the board for Heartland Express.

In past years, University of Iowa President Sally Mason has served on the MidWestOne Bank board of directors and was compensated.

Regents monitor the relationships and financial rewards of the board service. It's been a reasonable approach. However, if board work presents a conflict of interest, leads to undue corporate influence or distracts university presidents from their primary jobs, we expect Regents to step in.

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