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If a tree falls in the woods and there is no one there to hear it does it makes a sound?
Here's the full text of my comments at the BOT meeting yesterday:
July 21, 2017
President Barron, Chairman Lubert, fellow Trustees, more than 5 ½ years ago in January 2012, the leaders of this body promised the Penn State community that it would thereafter operate with openness, transparency and accountability. That promise remains largely unfulfilled and, as we today choose new leadership, I believe this Board remains secretive, sometimes purposely, and unaccountable. The Board’s self-appointed majority often acts in its own interests, ignoring the will of its alumni. Consequently, the Board is divided and more significantly the alumni are divided.
My remarks are often characterized by the majority as intemperate, possibly because sometimes my remarks are intemperate. Intemperate perhaps but always honest. Nonetheless, I have been here since this board acquiesced to guilt in mid-2012 and I have observed the extraordinarily expensive actions it has taken to pay for its self-imposed guilt.
I will cite just two of many examples where Board majority has acted, knowingly, to ignore the will of the University’s vast alumni.
In 2012 and by about a 10-1 ratio, trustees still in this room and many now long gone told Louis Freeh interviewers that board membership was much too large to achieve good board governance. By 2014, the trustees chosen by the alumni grew more active and sought answers to matters it deemed relevant in the boardroom. Alumni vote totals grew, though their representatives are still in the minority on this Board. The majority became less comfortable. And so, notwithstanding a board already hopelessly unwieldy at 32 members, the majority proposed to increase board size—except for its initial proposal to reduce the alumni’s representation on the board. We are now a cuddly 38 persons.
One need not be unduly intemperate to see that majority self-interest was imposed for its own selfish purposes by adding seats it could fill, without minority input. Self-interest superseded improved governance. Transparency?
Interestingly, Freeh chose not to recommend a reduced board size when board size was the clearest problem suggested to him. Not too big a surprise though-- much of what Freeh learned from interviewees never made it to the report. More disturbing is how much in the report has zero support in his investigatory notes. But that’s for another day.
The Freeh Report caused the destruction of the Penn State culture that I came to know and love, perhaps in perpetuity; it caused NCAA to impose unwarranted and Draconian sanctions; and as one obedient to his profession, Freeh created the wealth transfer of tens of millions from taxpayer and student pockets into the pockets of plaintiffs’ attorneys.
Much remains unsaid about Freeh’s Report because of the secrecy imposed by this board. Freeh’s destructive PSU indictment was never examined by this so called “accountable” body, nor by our outsized legal department. We were told by legal counsel, “Don’t look at that evidence; what if it is worse????” Not knowing was actually recommended -- I call that Purposeful Ignorance!!!
Purposeful Ignorance is an unnatural human condition and like most such conditions in this day and age, the product of lawyerly advice. Perhaps that advice fits into our contorted legal system—but legal or not, Purposeful Ignorance is not moral in my book. Millions were spent to keep those documents secret from the alumni of this university. Millions were spent to deny trustees the right to do their duty as they saw their duty. The majority chose to remain uninformed, then used taxpayer and student funds to preclude alumni trustees from gaining knowledge. In the end, more than $1.2 million was wasted.
--The majority knowingly and falsely informed us we had no duty to understand the Freeh investigation.
--After the majority forbid the minority to do its duty, seven, myself included, pursued that duty in the courtroom and not surprisingly won the case.
--The majority, in response to a private letter from the seven, chose to publicly rebuke the minority for its effort to gain access to information.
--President Barron chose to belittle the minority’s efforts publicly calling the information request “frivolous and damaging to the University”; where is seeking knowledge and truth frivolous?
--The majority purposely deceived the public saying we rejected a “compromise” to examine the Freeh data. Untrue yet published anyway.
--The majority indiscriminately paid lawyers for legal matters related to PSU and unrelated to PSU. We even paid the NCAA’s obligation to Senator Corman in a suit the NCAA LOST.
--The majority chose not to reimburse the duly elected members of this board for its legal fees associated with our effort to seek knowledge and truth but instead publicly and maliciously chastised and belittled our efforts. Fortunately, the three-person Commonwealth Court ruled otherwise and reminded President Barron our effort was indeed not “FRIVOLOUS.”
--The majority purposefully and deceitfully informed the public that Freeh interviewees had been promised confidentiality. Untrue. Freeh investigators explained to each interviewee their confidentiality could not be promised!!!
Worth mentioning is that President Barron reneged on his commitment to review the Freeh material noting that Freeh was not really relevant to the board’s work. Really not relevant to more than a quarter of a billion dollars and the university’s reputation?
The foregoing are simply not the actions of two board groups with valid differences of opinion. Generally though, that is how the majority characterizes differences. Differences we have, of course.
The actions I just cited reflect the actions of a majority imposing its self-interest—unlawfully--on the minority. Deception and majority self-interest are not okay.
James Madison was arguably the major contributor more than 230 years ago to the design of the Constitution of this country and its voting processes. His biggest fear, mitigated somewhat by the Electoral College, was the likely propensity of the voting majority to impose its will on the minority. He called it the tyranny of the majority. I better understand his fear.
The obligations of DUTY and LOYALTY of trustees are not determined by one of General Counsel’s many opinions, nor are they defined by the vote of the majority of trustees. Trustee obligations are individual and each must act according to his or her own conscience and sensibilities. This fact is well established and well understood in America—and by our self-selected legal subcommittee. Yet the committee and our leadership mislead us and they attempted to mislead the court.
Our lawyers, and the legal subcommittee have allocated hundreds of millions of dollars for which they should be accountable. This board and management long ago abdicated their responsibilities to lawyers. The money is gone. Sadly, so is our reputation. Obviously, all the kings’ horses and all the king’s lawyers cannot restore the pride and culture of a Penn State destroyed by our Purposeful Ignorance and perpetual passivity. We do not play offense or defense; we are inert.
I raise these matters again because silence is acquiescence. As I analyze our actions five years later I am more troubled than ever.
For 5 years I have imprecisely chosen the term “dysfunction” to describe this board. Board size alone causes the board confusion, incompetence, disorganization etc… that makes us dysfunctional. But dysfunction is prevalent on many not-for-profit boards. That is not the cause of our futility—the imposition of deceitful self-interest is the cause.
To be clear, the term deceitful is used to be precise. That its usage may be inflammatory and polarizing is unfortunate but true. Hundreds of thousands of alumni who care about our past and our future have been deceived and, in the process, disenfranchised.
Remember, we will never heal without truth and reconciliation.
Now Mark and Matt, I hope, I pray, that the two of you work together to help bring us back together.
Thank you.
If a tree falls in the woods and there is no one there to hear it does it makes a sound?