Trustees December Meeting Coverage |
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January 14, 2014, Volume 60, No. 18
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The Executive Committee of the Trustees of the University of Pennsylvania met on Thursday, December 12. At the Stated Meeting, the Trustees approved two resolutions: one to authorize the execution of a lease and expenditures for build out of space to house the Penn Wharton Center in Beijing, China, as part of Penn’s strategic international planning; and the other resolution on responsibility concerning endowment securities, to adopt new guidelines for divestment consideration and to establish an ad hoc advisory committee.
Vice President and University Secretary Leslie Kruhly explained that, “After a number of months of extensive discussion and fact-finding, the Executive Committee of Penn’s Board of Trustees has approved a new policy for considering divestment from the University endowment. The Trustees felt that it was important to improve the process by which members of the University community could express their views on possible divestment while protecting the fiduciary obligation of the Trustees to make investment decisions.
“The new policy will not affect the current request to consider divestment from tobacco companies that will be heard by University Council in January, but will apply to any new proposals for divestment that might come forward in the future.
“The policy establishes an updated list of guidelines for considering divestment and modifies the process by creating a new Ad Hoc Advisory Committee on Divestment that would make recommendations to the Board.
“Trustees consider their fiduciary role as their highest priority. This new policy strengthens the process in ways that they believe will significantly help in guiding their decisions.”
If members of the Penn community (students, faculty, staff or alumni) believe that divestment of specific corporate securities is warranted, they could present a proposal to the University Council Steering Committee for consideration.
If Steering concludes that there is a reasonable basis to proceed, it would refer the matter to the Ad Hoc Advisory Committee on Divestment, which would be constituted when needed.
If the Ad Hoc Committee believes some action is warranted, it should present its views to the Trustee Subcommittee on Divestment.
Upon receiving a recommendation from the Ad Hoc Committee, the Trustee Subcommittee on Divestment will consider the recommendation and provide its advice on the proposal to the Executive Committee of the Trustees for whatever action the Executive Committee deems appropriate under the Guidelines which outline the basic principles and social responsibility defined for purposes of divestment as well as options for actions the Trustees could consider.
Related: Faculty Senate Executive Committee Agenda |