Dollars and Sense

Penn State University is a cornerstone of the state's economy and the source of
higher education for many thousands of citizens. Unfortunately, a small cabal of
influential individuals has accumulated enough power that they make decisions on
behalf of Penn State that are not necessarily in the best interests of the
university, and by extension, the Commonwealth.
Board of Trustees bylaws state that seven or more trustees can schedule a board
meeting. In accordance with section 2.06 of our bylaws, eight of my colleagues
and I scheduled a meeting on Monday, December 15. The purpose was to discuss
whether Penn State should join state officials as a plaintiff in a lawsuit
against the NCAA rather than standing with the NCAA as a defendant. The stakes in
this lawsuit are huge - many tens of millions of dollars as well as Penn State's
reputation hang in the balance.
Our standing orders specify that trustees must "prepare diligently, attend
faithfully, and participate constructively in all Board of Trustees meetings." In
blatant violation of this order, board chair Keith Masser not only boycotted the
December 15 meeting, he encouraged other trustees to do so. These actions were
irresponsible, unethical, and possibly illegal.
The Masser Boycott is just the latest in a series of governance failures that
have undermined confidence in Penn State's leadership. The 2012 acceptance of the
NCAA consent decree is but one example of a few powerful people hoarding
information and making highly questionable decisions for the board. Rather than
convening the full board to grapple with monumental decisions, university
president Rodney Erickson consulted just a few of the board's power players and
head football coach Bill OBrien before signing a deal with significant
financial and reputational impact on the university. Given that one high ranking
NCAA staffer described her organizations efforts to sanction Penn State as a
bluff, it seems likely that a candid discussion among the full board would have
resulted in a better outcome.
Recent governance changes have not resolved the issue of the elite few making
decisions for the entire board. Although best practices emphasize the need for
smaller boards composed of fully engaged members, the Penn State board has been
made larger and thus easier for the powerful few to control.
The Sandusky scandal has cost the university at least 100 million dollars; just
about half the annual appropriation Harrisburg gives Penn State. To restore
Pennsylvania taxpayers confidence that the money they pour into the university
is being wisely spent, state leaders need to act. Governor-elect Wolf and the
state legislature should impose a solution on this small group of power players
who seem unwilling to put their own desires aside and act for the greater good.