When Conflicts of Interest Involve the Board
The Chronicle notes that one fourth of private institutions do business with their trustees’ companies. Further emphasizing the extent of possible conflicts of interest involving high-ranking officials at private institutions, another study (login required) notes that many presidents at US institutions with the largest endowments supplement their salaries with lucrative posts on corporate boards. We asked Lucie Lapovsky, president of Lapovsky Consulting and past president of Mercy College, for her advice on how institutional presidents can best manage institution/board relationships to either prevent a conflict of interest or minimize the negative impact if there are already existing conflicts. If Possible, Avoid the Conflict in the First Place “You’re far better off not having business relationships with your board members.”Lucie Lapovsky, Lapovsky Consulting Even if the relationship is entered into with the best of intentions, it is very difficult to terminate it if needed. Lapovsky cites the example of a construction contract with a board member’s company. It is rare in any case for a major capital project to stay on time and on budget. When the time comes for your institution to engage in difficult mid-project negotiations with the contractor, the decision of how hard to push the contractor will […]
