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ERIC Number: EJ825477
Record Type: Journal
Publication Date: 2008-Nov-21
Pages: 1
Abstractor: ERIC
Reference Count: 0
ISBN: N/A
ISSN: ISSN-0009-5982
Corporate Boards Provide Big Benefits to Presidents but Also Carry Big Risks
Fain, Paul
Chronicle of Higher Education, v55 n13 pA4 Nov 2008
University presidents are attractive candidates for corporate boards. Their credentials and their university's name lend an air of academic prestige to the companies they oversee. Presidents are typically well compensated for their service on boards of directors, earning at least six figures each year in cash fees and stock awards. The role can also pay off for universities through corporate partnerships and access to wealthy donors. However, the benefits come at a price. Presidents already put in long hours in their day jobs, and board meetings are time away from work. As a result, some university governing boards have begun to restrict the corporate-board service of their presidents. Some higher-education experts recommend that college chiefs take on no more than two directorships. In addition, governance experts say college presidents should be wary of corporate boards, in part because the stakes have gone up in the wake of the accounting scandals from earlier this decade. Subsequent federal legislation has given directors more responsibility as fiduciaries. They can be held accountable for management problems and could face fines after a corporate meltdown, while also bringing the university's name into a controversy.
Chronicle of Higher Education. 1255 23rd Street NW Suite 700, Washington, DC 20037. Tel: 800-728-2803; e-mail: circulation@chronicle.com; Web site: http://chronicle.com/
Publication Type: Journal Articles; Reports - Descriptive
Education Level: Higher Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A