The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Reports Suggests Governance Changes for TIAA-CREF Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, May 6, 2005

Reports Suggests Governance Changes for TIAA-CREF

Reported by Sean Hanna, Editor in Chief

Investigators are blaming TIAA-CREF's top leaders for not better informing the fund manager's board of an improper business deal with Ernst & Young. The conclusion came from a report released former U.S. Attorney General Nicholas Katzenbach yesterday.

The 52-page report is available in PDF format at http://www.tiaa-cref.org/pdf/katzenbach_report_4_29_05.pdf.

The investigation looked into how senior managers, including Chairman and CEO Herbert Allison, handled the situation when they learned that two TIAA-CREF trustees had conducted an improper business deal to jointly sell valuation services for corporate stock options with Ernst & Young, the company's outside auditor.

One problem, according to Katzenbach's report, was the board power-sharing arrangement that confused responsibilities. TIAA-CREF has one board of trustees for both its TIAA division and its CREF division. It then also has a separate board of overseers. The arrangement is a relic of the merger of the two companies decades ago.

Katzenbach recommended that TIAA-CREF scrap the board of overseers, noting that the existing structure runs the "constant risk of potential and actual conflict" and "runs counter to the notions of effective governance."

"The obvious solution to potential conflict would be elimination of the board of overseers, perhaps through merger with the TIAA board," the report said. "There is no compelling reason for it to exist as a distinct entity."  

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use