I don't mean this in mean way, but I'm not sure how much more I can lay it out.
Lets say the head of MNDot owned a license plate company on the side. Then MNDot started using that license plate company. Every person who needs a new license plate has to buy it from MNDot and MNDot buys it from the company.
Do you think it's likely that MNDot chose that license plate company for reasons that are in the best interest of the taxpayers (Cheaper, reliable, quality, etc.)? It's impossible to tell because there is an obvious conflict of interest.
The head of MNDot's interest, in their position as the head of MNDot, is to look out for the best interests of the taxpayer $. They essentially are a fiduciary to the public's money. The obvious conflict would come in that they would have an interest in their license plate company being picked by MNDot whether or not it's in the best interest of the tax payer. The conflict of interest occurs whether or not the license plate company was really the best bid.
Keep in mind, the companies that are putting these people on their board know this as well. It's the reason they put these people on their board - they are hoping for favorable treatment. It's why board rooms are full of former presidents, former politicians, etc.
The hypothetical scenario you lay out is a clear, blatant conflict of interest, no doubt.
I'm not sure I understand how or agree that it is a valid analogy to Gabel being on the Securian board.
Aren't the following true:
- Gabel would be paid $X for service on the board, regardless how Securian did as a company, and regardless if they picked up additional work from the U
- the work they were doing for the U had already been agreed upon before Gabel was offered the board seat, and possibly (probably?) before she was even named president here
- Gabel doesn't "own" Securian, but may have held stock of them (don't know)
- it's not unusual for a major university president to be on a board
- the U Regents offered/told(? this part is more murky, not sure if this can be clarified) that she could be on a board as part of how they got her "total" compensation up higher
The last part especially, UPitt exactly said that she could do that, and is how they were offering her "total" compensation that I believe is 40% higher than what she was making here.
I can totally understand that it was going to, and she should have known better,
look bad. That's fine, I don't need to challenge that necessarily.
I'm challenging that there was
actually the potential for a bad thing to happen here. So far, no one has been able to articulate hypothetically why this is, which I find odd if it is so obviously a blatant offense.