The University of Minnesota will review its conflict management policies following the controversy over President Joan Gabel's decision to take a corporate board seat, officials announced Friday.
"The goal here is to ensure that our policies align with best practices," Ken Powell, chair of the Board of Regents, said in a meeting Friday.
Powell said he has asked the board's policy committee to look at the system "as it relates to senior university leaders." That group meets again in June.
The board voted 9 to 3 in December to allow Gabel to take a paid position on the board for Securian Financial, which has more than $1 billion worth of business with the university. As a condition, she was required to recuse herself from any decisions involving the U and Securian Financial or its affiliates.
The university pays about $4.6 million each year to Minnesota Life Insurance Co., a Securian Financial affiliate, to cover basic life insurance for employees. It transferred its retirement plan administration to Fidelity a couple of years ago but still has about $1.3 billion in "legacy business" with Securian Financial, according to a letter written by leaders of the university's Conflict of Interest Program and Institutional Conflict Review Panel.
The arrangement drew concern from some high-profile officials, including the governor and state attorney general. Gabel resigned from the position with Securian Financial last month. At the time, Regent Darrin Rosha called for the university to examine its conflict review policies, noting that some people who review the matters ultimately report to the university president.
During a public meeting Friday with the university's Board of Regents, Gabel said she wanted to acknowledge "the public concern over my corporate board seat, which I recognize that, regardless of the intent, did become an unfortunate and difficult distraction for our community." She said she stepped down "in the best interest of the university" and thanked people for their feedback.
