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Last modified
7/12/2021 11:03:53 AM
Creation date
3/20/2017 1:10:22 PM
Metadata
2016-1340
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Opinion Item
Opinion Type
Advisory Opinion
Docket Number
2016-1340
Requesting Party
Thomas Skinner
Agency at Issue
LSU Foundation
Decision Date
3/17/2017
Caption
Advisory opinion that the Code of Governmental Ethics would prohibit the Louisiana State University Vice President, who is also serving as the CEO of LSU Foundation, from being compensated solely by the LSU Foundation. However, La. R.S. 42:1111A(1)(b) would allow the LSU Vice President to receive supplementary compensation or benefits from funds accruing to the benefit of LSU as approved by the appropriate policy or management board, through the Foundation. Additionally, the LSU Foundation must reimburse LSU, either directly or through in-kind services, for the cost of LSU employees furnished to support the LSU Foundation. The Code of Governmental Ethics would not prohibit the LSU CFO from serving as the interim Foundation CFO, provided that his duties and compensation as LSU CFO will be continued without change and the LSU Foundation will reimburse LSU for the portion of his salary attributable to time spent on Foundation matters and away from his regular LSU duties. In general, La. R.S. 42:1112B(3) would prohibit the LSU Vice President/Foundation CEO from participating, in his capacity as LSU Vice President, in any transaction involving LSU in which the economic interest is of greater benefit to the Foundation than to any of the other LSU affiliated foundations. Finally, La. R.S. 42:1115 would prohibit the LSU Vice President from soliciting and/or accepting donations from certain prohibited sources for his personal benefit as well as for the benefit of his agency or other person.
Ethics Subject Matters
Payment - Not Duly Entitled
Participation
Prohibited Sources
Donations
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A search committee made up of the ranking members of the Foundation's Board of <br /> Directors, including LSU President F. King Alexander, an ex-officio board member, and <br /> Mr. Layzell, the interim Foundation CEO, will interview candidates for the position. The <br /> Foundation's Board of Directors will make the final decision regarding the new <br /> Foundation CEO, while Mr. Alexander will be responsible for filling the LSU VP <br /> position. In his capacity as Foundation CEO, he will report directly to the Foundation's <br /> Board of Directors and will undergo annual performance evaluations without the <br /> involvement of the LSU President. As LSU VP, he will report directly to the LSU <br /> President and be subject to the performance evaluation process required of similar <br /> positions. <br /> Whether La. R.S. 42:1111 prohibits the Foundation's employment and compensation of <br /> the Foundation CEO/LSU VP position? <br /> La. R.S. 42:1111A(1)(a) prohibits a public servant from receiving anything of economic <br /> value, other than compensation and benefits from the governmental entity to which he is <br /> duly entitled, for the performance of the duties and responsibilities of his office or <br /> position. <br /> La. R.S. 42:1111A(1)(b) provides that any supplementary compensation or benefits <br /> provided to an employee of a public higher education institution, board, or system from <br /> funds or property accruing to the benefit of the institution, board, or system as approved <br /> by the appropriate policy or management board, through an alumni organization <br /> recognized by the management board of a college or university within the state or <br /> through a foundation organized by the alumni or other supportive individuals of a college <br /> or university within the state the charter of which specifically provides that the purpose of <br /> the foundation is to aid said college or university in a philanthropic manner shall be <br /> deemed for purposes of this Subsection as compensation and benefits from the <br /> government to which he is duly entitled. <br /> The Board concluded, and instructed me to inform you, that the Code of Governmental <br /> Ethics would prohibit the LSU VP, who is also serving as the Foundation CEO, from <br /> being compensated solely by the Foundation. However, La. R.S. 42:1111A(1)(b) would <br /> allow the LSU VP to receive supplementary compensation or benefits from funds <br /> accruing to the benefit of LSU as approved by the appropriate policy or management <br /> board, through the Foundation. Additionally, pursuant to La. R.S. 17:3390B(3), the <br /> Foundation must reimburse LSU, either directly or through in-kind services, for the cost <br /> of LSU employees furnished to support the Foundation. Therefore, the LSU VP must <br /> receive at least some of his compensation directly from LSU, for which the Foundation <br /> must reimburse LSU the portion of his salary attributable to time spent on Foundation <br /> matters and away from his LSU duties. <br />
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