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University president in line for $45,000 retainer, stock grants as private company’s board member

By Carisa Seltz on September 10, 2010 6:30 am in University / 9 comments

 

University President George Ross could earn tens of thousands of dollars after being named to the board of directors of a private company.

On Wednesday, Ross was elected to the Furniture Brands International Inc. Board of Directors, for which he’s required to attend four meetings annually.

John Hastings, Furniture Brands’ vice president of communications and investor relations, said the St. Louis-based company sought Ross’ participation after a current board member recommended him.

“He has a long history of building coalitions and I think that’s essential to what we’re doing,” Hastings said. “We’re building a company with processes and infrastructure to develop our company and (Ross) has a lot of experience having done that.”

According to the company’s 2009 proxy statement, board members are typically compensated through an annual cash retainer of $45,000. There also is an annual stock option worth $75,000 given on the first anniversary of the grant date and a one-time stock award for newly-elected non-employee directors, which gives $50,000 over five years.

The company has also reimbursed directors for “reasonable expenses” in connection with attending board meetings. They pay the premiums on a $100,000 term life insurance policy pursuant to the company’s group term life program, according to the statement.

Hastings said directors’ compensation will be disclosed in the company’s 2010 proxy statement, which will be disclosed next spring.

Furniture Brands is a global company publicly traded on the New York Stock Exchange that designs, manufactures and sells home furnishings.

In an interview with Central Michigan Life Thursday, Ross said he’s looking forward to advancing his role as president of CMU and lending his expertise to the company’s board.

“I think this is a great opportunity for me professionally,” he said, “but as importantly for the university to be associated with a corporate board.”

Board members are typically assigned to a different committee and serve in that capacity, Hastings said, but Ross’ duties, official start date and monetary compensation have yet to be determined.

Ross also serves as chairman of the Central Michigan Research Corporation and is a member of the Clarke Historical Society Board, Middle Michigan Development Corporation and National Charter Schools Institute.

He said other university presidents throughout the country regularly serve on corporate boards.

CMU’s Office of Corporate and Foundation Relationships strives to develop positive relationships between CMU, corporations and foundations throughout the state and country, Ross said.

“Being on this board will give me exposure to some of the (Chief Executive Officers) of corporations and foundations throughout the country,” he said.

The first of four board meetings will take place November in St. Louis, Mo., Hastings said.

Ross said traveling to the meetings will not adversely affect the university in any way. He said he also travels to Washington, D.C. on behalf of the university.

“I travel extensively on behalf of the university,” he said. “I’m off campus in state to Detroit and Lansing very often.”

 

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  • Michmediaperson

    Here's the problem I have with this.

    We're paying George Ross to work for CMU.

    If he wants to moonlight as a board member, then he should have to use vacation days to attend board meetings.

    The Board of Trustees should insist on this.

    Just like any other university person on payroll who consults, they should consult on their free time. If they cancel a class or office hours to be paid as a consultant, then they should reimburse the university and the Michigan taxpayers.

    I might make an exception for Ross if he can proved he brought in more money to CMU than the amount of money he would have made sitting in Warriner Hall or out on university time, not furniture time.

    At this time, the Board of Trustees and the Michigan taxpayers should dock him for vacation time…..or sign over the compensation to CMU.

  • Steven J.

    Wow. I first thought this was a joke. So the President's new job doesn't keep him busy enough or make him enough money? Is this really the image he wants to project in his first year here? Perhaps he might want to focus his energies on the job he *just took*?

  • CMU faculty member

    This is a disgrace, coming from a university where faculty are banned from running for public office as it will supposedly distract from their duties at CMU. He already got a 15% pay raise compared to his predecessor Michael Rao, and a 81% pay raise compared to his pay as president of Alcorn State U. Apparently scraping by on $350,000 is not enough to maintain himself?

  • Disgruntled Taxpayer

    CMU President George Ross is a public servant; he's an employee of the State of Michigan, and we, the people, pay his salary. This is an outrage. I cannot believe there isn't a state law prohibiting such an appointment to the board of a publicly traded company. Can you imagine if the speaker of the State House took such an appointment or even the governor? This is absurd.

  • Is Glen Beck a terrorist?

    Dr. Ross already has a contract with CMU. If that contract does not proscribe such activities, and there's no reason to think that it does, there's nothing to be done about it. It doesn't matter what you think, nor what exceptions you might make.

    He's a businessman now; why aren't you showing him support? You support Rick Snyder.

    If I recall correctly what's covered in his CMU contract, his travel to and from those meetings is covered by CMU. (If he decided to drive his CMU-provided car there and back, he certainly could put it on CMU's dime.) Feel free to cry about that as well.

  • Michmediaperson

    Obviously, the Jennifer Granholm-select board members, the Democrats who now run the CMU Board of Trustees, did a lousy job negotiating Ross' contract.

    As far as Snyder goes, show me when he was moonlighting for personal gain WHEN WORKING ON THE TAXPAYERS' DIME. I don't know if he has ever been in the public sector.

    If he wins the election, then he better not be sitting on boards for personal gain, either. I doubt he would. I can't think of a politician ever doing that.

    If the Republicans win back the Governor's seat and the state house, then we're going to have to pass a bill prohibiting state workers, including college presidents, from sitting on boards for personal income gain.

    I think the U-M president makes a bundle sitting on boards. The Democrats have been too generous to state employees. That's why we need Snyder and the GOP to come in and lay down the law.

    The college presidents in this state are being overpaid as is, let alone they are out moonlighting on taxpayer's time.

  • Is Glen Beck a terrorist?

    If you want the public sector run like the private sector, why are you in favor of trying to prevent in the public sector what is common practice in the private sector? In the private sector, company boards are loaded with executives and board members of other companies. Dr. Ross is not an elected official, he's a hired executive; comparing his position to that of Governor is absurd.

    And if you're going to cry about executive compensation in the public sector, take a look at the private sector and dry up already.

  • Is Glen Beck a terrorist?

    You don't pay his salary, CMU does.

    Go tell a state cop you pay his or her salary and see if that does you any good.

  • Is Glen Beck a terrorist?

    No, they are not.

    http://www.cmich.edu/Documents/trustees/policy-manual/c3/03-04%20%2812-4-08%29.pdf

    Selected quotes from the policy:

    “Public service is part of CMU’s Vision Statement. Therefore, employees are encouraged to seek and hold public office.”

    “Employees who seek public office of any kind must do so on their own time.”

    “Any employee of the university who becomes a candidate for nomination and/or election to any federal, state, county, or local office, whether it be part-time or full-time, paid or unpaid, is required, upon filing for candidacy, to present to the applicable personnel office (either Human Resources or Faculty Personnel Services) a statement from her/his supervisor and the applicable vice president or the provost (or president with respect to members of the president’s division) of CMU attesting that appropriate arrangements have been made to ensure that their candidacy in no way will interfere with the full performance of their university work and that their candidacy will pose no conflict with professional standards or ethics.”