The powerful chairman of the Senate Finance Committee is expected to call for major reforms for the American University Board of Trustees following a six-month investigation into the ouster of former President Benjamin Ladner, sources said.
Several top school officials have been meeting with committee staff for months to reach a compromise on the extent of the reforms, which several sources close to the talks said could include the removal of as many as four trustees who have been criticized for their role in Ladner’s $3.75 million departure package.
Sen. Charles Grassley, R-Iowa, chairman of the committee, is expected to outline his reform recommendations in the next few weeks, sources said.
Ladner resigned in October after hundreds of thousands of dollars in expenses were questioned by outside auditors. The Board of Trustees initiated a massive internal reform effort shortly after Ladner’s dismissal — and before the Senate committee began its investigation in late October. Those reform recommendations are expected to be unveiled next month.
Gary Abramson, chairman of the Board of Trustees, has led discussions with the Senate committee but declined to comment Thursday on the talks.
“The board and its governance committee have been hard at work, conferring almost daily with its consultants and among itself as well as meeting with all the university constituents,” Abramson said. “There are a lot of areas to review and possible changes to consider.”
AU spokesman David Taylor said any “specifics” of the talks with the Senate committee would not be made public.
One current trustee, who was not part of the talks and asked not to be named, said that if Grassley recommends the dismissal of trustees, it would be “simply rehashing old grudges.” A handful of trustees resigned during negotiations over Ladner’s departure package and were highly critical of several board members.
Jill Gerber, a spokeswoman for the Senate committee, did not return calls and e-mails seeking comment.
Committee investigation
» The Senate Finance Committee has oversight over nonprofit organizations — including institutions of higher education.
» Grassley has overseen massive reform efforts at the Red Cross and United Way.
» University officials said reform efforts would have moved forward without a Senate investigation.
» Several trustees said they would fight any effort to single out individual board members for dismissal.
