Friday, May 18, 2012
California State Foundation bonuses pose conflict of interest
Following public outcry over six-figure pay raises handed out to top executives, the California State University Board of Trustees approved a plan last week to shift future pay hikes from taxpayer funds to nonprofit auxiliary foundations. The decision effectively freezes the amount of tax dollars spent on the college’s executive compensation, and Cal State officials hoped that would be enough to bring closure to the issue. ... “The CSU Board of Trustees’ decision to use funds from college foundations to pay for raises for campus presidents does raise some questions,” said Loyola Law School Professor Jessica Levinson. “If college presidents are in control of these college foundations, then it raises at least a question of the appearance of a conflict of interest.” Finish reading the article here.