Argus reports "SDSU's cozy deal questioned"

[JimmyJack]

President Chicoine's decision to join the Monsanto board (for $195,000 a year plus $195,000 in stock options the first year) questioned:

http://www.argusleader.com/article/2...eal+questioned

My opinion: This is nothing unusual, in the larger scheme of things. University presidents commonly sit on boards and receive pay for their work. It's just new to South Dakota. There are ethics rules in place that govern these situations. Presidents of major universities do this all the time.

However, I don't think the rollout of this appointment was handled properly, from a media relations perspective. When you fail to mention the compensation in your announcement and reporters instead find it in SEC documents, it creates a perception that somebody was hiding something. That sets off hypocrisy detectors in reporters' heads. Generally speaking when it comes to media relations, self-disclosure buys you considerable slack with reporters. I would have advised that the announcement include the compensation information and an effort to educate the public about how common this is.

Media relations is really the management of perceptions among a specific public, people who work in newsrooms. Those perceptions could have been better handled in this case.

[RabbitObsessed]

Re: Argus reports "SDSU's cozy deal questioned"

Was this the whole "Stu's going to write a bad article about SDSU" thing then? Without Stu actually writing it, I mean.

[EQguy]

Re: Argus reports "SDSU's cozy deal questioned"

I agree JJ. I saw the headline in one of the Argus piles at Hy-vee this morning and I cringed a little. After reading the article on-line I thought it was much ado about nothing.

[Pierre_Jacks_Fan]

Re: Argus reports "SDSU's cozy deal questioned"

Why are South Dakotan's sometimes so hard on "success"? Somehow it's wrong to be succussful. That's what I kept thinking while reading the article.

[JackJD]

Re: Argus reports "SDSU's cozy deal questioned"

Why are South Dakotan's sometimes so hard on "success"? Somehow it's wrong to be succussful. That's what I kept thinking while reading the article.

Good post. I think it was fine for the Argus to print the article. It was certainly newsworthy and there will be differences of opinion on what SDSU's President is doing. I come down on the side of Pierre Jacks Fan...we can keep an eye on conflicts of interest and for now, I trust Pres Chicoine to avoid conflicts. It's a credit to SDSU that our President is considered for such positions.

Many universities encourage their professors and administrators to get involved in the private sector. A good friend of mine was a Harvard econ professor and he told me Harvard was one of the best universities to work for -- not necessarily the highest paid but the best in terms of encouraging its people to get involved outside the university and thereby make some additional money while adding to the prestige of Harvard.

[Cowbell]

Re: Argus reports "SDSU's cozy deal questioned"

To me, this is more about money than conflict of interest. The average person, making $35,000 a year, can't compute this type of thing with all the intangibles. They see someone who is already making a heck of a lot money making a lot more money. It just can't be right.

[KUlawJack]

Re: Argus reports "SDSU's cozy deal questioned"

To me, this is more about money than conflict of interest. The average person, making $35,000 a year, can't compute this type of thing with all the intangibles. They see someone who is already making a heck of a lot money making a lot more money. It just can't be right.

Again, with the success thing though. He has a Ph.D and is well respected for his knowledge in agri-business. Board of Directors make good money because they are good administrators. Keep in mind he is an outside director. His small stockholding in a gigantic corporation would hardly be incentive to risk his role at his alma mater.

The average person making $35,000 a year probably doesn't have the tools to be placed into a position like this or they would have gotten the degrees and made the connections and worked hard and achieved it. I am not saying that they couldn't do so, they just chose not to.

I really could care less how much money he makes from this position. We pay him peanuts compared to what other University presidents make across the country. His vision and connection will help grow the university and I expect it will be done properly and encourage the type of ethical growth we want. Until there is any hint of his BOD position affecting the University in a questionable way, there is no reason to conclude otherwise.

[JimmyJack]

Re: Argus reports "SDSU's cozy deal questioned"

To me, this is more about money than conflict of interest. The average person, making $35,000 a year, can't compute this type of thing with all the intangibles. They see someone who is already making a heck of a lot money making a lot more money. It just can't be right.

That's the common reaction. But of course most of us aren't nearly as accomplished as somebody like David Chicoine. And most people who make $35,000 (been there, done that) don't have expertise that others are willing to pay big bucks for.

There's definitely a tendency for some people to dismiss the value of a Ph.D. It happens to me all the time (even on campus). But it's worth remembering that you only get a Ph.D. after you become one of THE experts on a given topic, sometimes one of a handful of experts in the entire world. Some areas of expertise, like President Chicoine's understanding of agri-business, are worth a lot of money in the corporate world. Other areas of expertise (like mine... FBI public relations during the J. Edgar Hoover era) are not.

[Cowbell]

Re: Argus reports "SDSU's cozy deal questioned"

JimmyJack, please don't understand me. I don't have a problem with this at all. President Chicoine is an intelligent man with above average ethics. He doesn't see a conflict of interest. The fact that the Board of Regents okayed it says they don't see a conflict of interest. I just think the average person has a hard time grasping this and some folks with PhDs don't like the idea he's making so much more than they are. I believe this will be a good thing for SDSU.

[filbert]

Re: Argus reports "SDSU's cozy deal questioned"

I'll take this opportunity to point out the extreme bias of the Argus' choice of headline: "SDSU's 'cozy' deal questioned"

The scare quotes around the word "cozy" . . . in fact, the inclusion of the word itself automatically biases the reader against whatever deal is being reported on.

Nice work, Argus headline writer. The topic was likely to be controversial anyway but there's nothing better than pouring a bit more gasoline on a fire, right when you're starting it.

Monsanto's Board of Directors Charter and Corporate Governance Guidelines is interesting reading:
http://www.monsanto.com/responsibili...ov/charter.asp

[filbert]

Re: Argus reports "SDSU's cozy deal questioned"

In case it matters who Monsanto's other Directors are, and where Chicoine fits into the group:

Frank V. AtLee III, 68, is a retired president of the former American Cyanamid Company and chairman of the former Cyanamid International. Both companies were involved in the discovery, development, manufacturing and marketing of medical and agricultural products. Mr. AtLee served Monsanto as chairman of the board and chair of the Executive Committee from June 2000 to October 2003. He was Monsanto's interim president and chief executive officer from December 2002 to May 2003. He is a member of the Audit and Finance Committee and the Science and Technology Committee.
Mr. AtLee has been elected to a term that expires in 2010.

John W. Bachmann, 70, is a senior partner of Edward Jones, a major financial services firm that advises individual investors exclusively. From 1980 until 2004, Mr. Bachmann served as managing partner of Edward Jones. Mr. Bachmann was elected to the Monsanto board in May 2004 and is a member of the Audit and Finance Committee and the People and Compensation Committee. He also serves on the boards of AMR Corporation and the U.S. Chamber of Commerce, where he was the chairman of the board for 2004-2005.
Mr. Bachmann has been elected to a term that expires 2011.

David L. Chicoine, Ph.D., 62, is president of South Dakota State University, a leading research institution. Prior to 2007, he held various positions of increasing responsibility with the University of Illinois, most recently as vice president for technology and economic development and interim vice president of academic affairs at the Urbana-Champaign campus. Dr. Chicoine was elected to the Monsanto board in April 2009 and is a member of the Public Policy and Corporate Responsibility Committee and the Science and Technology Committee.
Dr. Chicoine has been elected to a term that expires in 2010.

Janice L. Fields, 53, is executive vice president and chief operating officer of McDonald’s USA, LLC, a subsidiary of McDonald’s Corporation, the world’s leading global foodservice retailer. She served as president, McDonald’s Central Division from 2003 to 2006, and has been with McDonald’s USA for more than 30 years. Ms. Fields was elected to the Monsanto board in April 2008 and is a member of the Nominating and Corporate Governance Committee, the Public Policy and Corporate Responsibility Committee and the Science and Technology Committee.
Ms. Fields has been elected to a term that expires in 2012.

Hugh Grant, 50, is chairman of the board, president, and chief executive officer of Monsanto. He joined the former Monsanto as a product development representative for the company's agricultural business in 1981. Since 1991, he has held a variety of management positions, most recently as executive vice president and chief operating officer. Mr. Grant chairs the Executive Committee. He also serves on the board of PPG Industries, Inc. He has lived and worked in a number of international locations including Asia and Europe, as well as the United States.
Mr. Grant has been elected to a term that expires in 2012.

Arthur H. Harper, 53, is managing partner of GenNx360 Capital Partners, a private equity firm focused on business to business companies. He served as president and chief executive officer - Equipment Services Division, General Electric Corporation from 2002 to 2005 and executive vice president - GE Capital Services, General Electric Corporation from 2001 to 2002. Mr. Harper was elected to the Monsanto board in October 2006 and is a member of the Public Policy and Corporate Responsibility Committee and the Science and Technology Committee. He also serves on the board of Gannett Co., Inc.
Mr. Harper has been elected to a term that expires in 2010.

Gwendolyn S. King, 68, is president of Podium Prose, a speakers bureau. From 1992 to her retirement in 1998, Mrs. King was senior vice president, corporate and public affairs, for PECO Energy Company, now Exelon, a diversified utility company. From 1989 through 1992, Mrs. King served as the 11th Commissioner of Social Security. Prior to her appointment, she was deputy assistant to the President and director of Intergovernmental Affairs for President Ronald Reagan. Mrs. King has served as a director on the Monsanto board since February 2001. She chairs the board's Public Policy and Corporate Responsibility Committee, and she is a member of the People and Compensation Committee, and the Nominating and Corporate Governance Committee. Mrs. King also serves on the boards of Lockheed Martin Corporation and Marsh and McLennan Companies Inc.
Mrs. King has been elected to a term that expires in 2010.

C. Steven McMillan, 63, is a retired chairman of the board and chief executive officer of Sara Lee Corporation, a global consumer packaged goods company whose brands include Sara Lee, Hillshire Farms, Earth Grains, Jimmy Dean, and Douwe Egberts. He has served as a director on the Monsanto board since June 2000. Mr. McMillan chairs the board's People and Compensation Committee, and he is a member of the Audit and Finance Committee and of the Nominating and Corporate Governance Committee.
Mr. McMillan has been elected to a term that expires in 2012.

William U. Parfet, 62, is chairman of the board and chief executive officer of MPI Research Inc., a preclinical toxicology research laboratory. He has served as a director on the Monsanto board since June 2000. Mr. Parfet chairs the board's Audit and Finance Committee, and he is a member of the People and Compensation Committee and the Executive Committee. He also serves on the boards of Stryker Corporation and Taubman Centers, Inc.
Mr. Parfet has been elected to a term that expires in 2011.

George H. Poste, Ph. D., D.V.M., 64, is chief executive of Health Technology Networks, a consulting group specializing in the application of genomics technologies and computing in healthcare. In February 2009, he assumed the post of Chief Scientist, Complex Adaptive Systems Initiative at Arizona State University. From May 2003 to February 2009, he was director of the Arizona Biodesign Institute at Arizona State University. Dr. Poste is a member of the Defense Science Board and the Health Board of the U.S. Department of Defense. He is a Fellow of the Royal Society, the Royal College of Pathologist and the UK Academy of Medicine and Distinguished Fellow at the Hoover Institution at Stanford University. Dr. Poste is also a member of the Council on Foreign Relations. He has served on the Monsanto board since February 2003. Dr. Poste chairs the Science and Technology Committee and is a member of the Public Policy and Corporate Responsibility Committee. Dr. Poste also serves on the boards of Exelixis, Inc. and Orchid Cellmark Inc.
Dr. Poste has been elected to a term that expires in 2011.

Robert J. Stevens, 57, is chairman of the board, president and chief executive officer of Lockheed Martin Corporation, a firm engaged in the research, design, development, manufacture and integration of advanced-technology systems, products and services. During 2001 and 2002, he served on President George W. Bush's Commission to Examine the Future of the United States Aerospace Industry. Mr. Stevens has served as a director on the Monsanto board since August 2002. He chairs the board's Nominating and Corporate Governance Committee, and he is a member of the Audit and Finance Committee and of the Executive Committee. He also serves as Monsanto's presiding director.
Mr. Stevens has been elected to a term that expires in 2012.

Should Chicoine turn down an opportunity to spend significant amounts of time with people like this? Should the people of South Dakota DO SOMETHING! to keep these evil, vicious, and ruthless people away from SDSU's president? (Sorry, I'm getting a bit sarcastic here. Apologies. I'll go sit in a corner for a while.)

[joeboo22]

Re: Argus reports "SDSU's cozy deal questioned"

I don't have the brightess opinion of Monsanto, Dupont or any of the agricemical/seed companies, but some people need to understand this... If Chicoine issn't on the board, another president will be... And SDSU will benefit more then the money that Chicoine makes on the board and what SDSU pays him combined.....

[JACKGUYII]

Re: Argus reports "SDSU's cozy deal questioned"

IMHO, SDSU is less likely to gain Monsanto investment money with Chicoine on the Board as they will go out of their way to not show they are buying influence. Would Chicoine have taken this post if the compensation package was not this good? I wonder how much is the time commitment for President Chicoine to be on the Monsanto Board? If it does not conflict with his "real job" I don't have a huge issue with it. There is a lot of debate over compensation Doctors recieve for trying and recommending pharmaceutical and medical device products. Is this any different? Does Dr Chicoine allow other Professors to spend their time and enrich themselves in this manner? If your qualified and both parties are interested why not serve on these boards after you step down from the Public Sector and then you don't have to worry what anyone thinks.

[KUlawJack]

Re: Argus reports "SDSU's cozy deal questioned"

IMHO, SDSU is less likely to gain Monsanto investment money with Chicoine on the Board as they will go out of their way to not show they are buying influence. Would Chicoine have taken this post if the compensation package was not this good? I wonder how much is the time commitment for President Chicoine to be on theMonsanto Board? If it does not conflict with his "real job" I don't have a huge issue with it. There is a lot of debate over compensation Doctors recieve for trying and recommending pharmaceutical and medical device products. Is this any different? Does Dr Chicoine allow other Professors to spend their time and enrich themselves in this manner? If your qualified and both parties are interested why not serve on these boards after you step down from the Public Sector and then you don't have to worry what anyone thinks.

According to the Charter, the BOD meets 4-6 times a year. I am sure what other professors do with their personal time would be up to them. I really don't know and JimmyJack could probably give us better info on that. If one wanted to write a book for instance on his or her free time (taking into consideration he or she is also meeting the university's requirements for published academic work) I would bet that no one would have a problem with it. I could be wrong though.

Your statement about the compensation package is off base I think. It is good by any reasonable standards, but considering the size of Monsanto, its most likely comparable to any outside director's compensation in another similar corporation. Look at the Charter Filbert posted. The information is there and specifically mentions this stuff and how the Compensation Committee deals with these situations to avoid infringing on an outsider director's independence.

[JACKGUYII]

Re: Argus reports "SDSU's cozy deal questioned"

I'm sure there are more lucrative Board positions, but there are also many where it's travel expenses and a stipend.