Dive Brief:
- University of California regents have tightened rules on conflict of interest policies for campus leaders, asking them to justify and limit positions outside of their primary system employment and to prove how the positions benefit their institutions.
- Presidents say outside consulting or board memberships help them to better understand governance and to make philanthropic connections.
- The rules will impact 165 executives, but will grandfather in 50 executives who have outside positions on for-profit companies which will be subject to annual review.
Dive Insight:
Limiting the outside compensation of college presidents may present an unintended consequence of discouraging quality leaders from considering certain positions. While designed to prevent corruption or improper benefits with vendors, it also limits opportunities to bolster campus marketing with public expertise or exposure to corporate or legislative circles.
Given the limited pool of presidents and chancellors with records of success, some systems or boards may benefit by encouraging presidents to seek outside opportunities which can positively position schools for fundraising or legislative benefit.