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