Karen Peetz–Honesty and Integrity is an Issue For Her

Ms. Karen B. Peetz has been the President of The Bank of New York Mellon Corporation since January 01, 2013 and serves as its President of BNY Mellon NA. Ms. Peetz served as the Chief Executive Officer of BNY Mellon’s Issuer, Treasury & Broker Dealer Services since July 2008.

She was Chairman of the Pennsylvania State University’s Board of Trustees when the Consent Decree with the NCAA was signed. Ms. Peetz has a Bachelor of Science from Pennsylvania State University and a Master of Science from Johns Hopkins University.

Bank of New York Mellon will pay $714 million to settle state and federal charges that it engaged in a scheme to defraud clients by systematically adding hidden spreads to foreign currency trades executed on their behalf, government prosecutors announced Thursday.
BNY Mellon, based in New York, “admitted the factual details of its fraud” and will fire certain executives involved in the fraud, including the head of products management, David Nichols, who was named as a defendant in the federal lawsuit, according to New York’s attorney general and the U.S Attorney’s office in Manhattan. The trust and custody giant also will “reform its practices to improve and increase the information it provides to its customers,” the joint release said.
BNY Mellon had foreshadowed the settlement last month in a Securities and Exchange Commission filing in which it said it was revising fourth-quarter earnings downward by $598 million to account for the anticipated deal.
State and federal fraud charges in the matter were filed in 2011. A former currency trader for BNY Mellon in Pittsburgh, Grant Wilson, was previously identified as a whistleblower in the case.

Age 58

Total Calculated Compensation 5,532,958

She is connected to 225 board members in 6 different organizations across 7 different industries


Bob Costas Doubts Paterno Involved in Cover Up

Emmy Award-winning NBC sportscaster Bob Costas said Wednesday concerning the  ongoing investigation of the Jerry Sandusky/Penn State sex scandal, “I don’t buy  the idea that [late head coach Joe Paterno] was actively involved in a  cover-up.”

“There’s a grand jury proceeding that just said there’s enough evidence to  take it to trial, which was no surprise to anybody,” Costas replied. “Spanier,  Curley, and Schultz, the administrators, who will go on trial.”

“But the main figure to the average person,” he continued, “the main figure  is still, other than Sandusky himself, Joe Paterno, who has since passed away.  And I really think that there is now some legitimate doubt.”

“I don’t know where the truth is,” Costas added, “but there’s some  legitimate doubt about the extent of Paterno’s involvement. The pat storyline  became, everybody, Paterno included, knew pretty much what Sandusky was up to.  And they all kind of conspired to cover it up to protect the image of the  football program at Penn State.”

“And you don’t think that’s true?” Leno asked.

“I  think that Paterno was negligent,” answered Costas. “I think he should have  recognized what was going on because the warning signals were there. But, having  read the Freeh report, and then having read some of what’s been put out to  refute it, I don’t buy the idea that he was actively involved in a  cover-up.”



More Than 300 Former Penn State Players, Coaches Support Challenge to NCAA

More than 325 former Penn State football players have joined in support of a recent lawsuit filed against the NCAA.

The Paterno family, members of Penn State’s board of trustees and faculty and former players and coaches filed their suit last month alleging unlawful conduct by the NCAA in sanctioning the athletic department.

The suit seeks to overturn last July’s sanctions, calling the NCAA’s actions an “improper interference in and gross mishandling of a criminal matter that falls far outside the scope of their authority.”

Joe Paterno and the entire Penn State football program have been used as scapegoats in this horrible tragedy,” Masella said in a statement. “When the NCAA neglected to conduct their own investigation, and used the flawed Freeh Report as the judge and jury, they further prevented an opportunity to get to the real truth, and in turn, punished a generation ofPenn State players, students, and supporters who had nothing whatsoever to do with Jerry Sandusky.”

The following players and coaches support the May 30 lawsuit challenging the NCAA sanctions against Penn State.

•  Robert Belus
•  Frank Della Penna
•  Charles Chick King
•  Ron Markiewicz
•  Fran “Bucky” Paolone
•  Don Ryan
•  John Jack Urban
•  Dick Anderson
•  Steve Bezna
•  Bob Capretto
•  Jack Curry
•  Alan Delmonaco
•  Gerry Farkas
•  Chuck Franzetta
•  Ed Gabirel
•  Tony Gebicki
•  James Graham
•  Warren Hartenstine
•  Michael Irwin
•  Robert Kline
•  George Kulka
•  John Kulka
•  Jon Lang
•  Ed Lenda
•  Linc Lincoln Lippincott
•  Jim Litterelle
•  Thomas Mairs
•  James McCormick
•  Thomas McGrath
•  Dave McNaughton
•  Donald Miller
•  Hank Oppermann
•  Bill Rettig
•  Dave Rowe
•  Ted Sebastianelli
•  Gary Shaffer
•  Steve Smear
•  Dave Truitt
•  Frank Waresak
•  Chris Weber
•  Walt Addie
•  Russell Albert
•  Kurt Allerman
•  Ferris Atty
•  Jeff Behm
•  David Bland
•  Jeff H. Bleamer
•  Jim Bradley
•  Tom Bradley
•  Richard M. Brown
•  Chuck Burkhart
•  John W. Bush
•  Greg Buttle
•  Robert Campbell
•  Michael Cappelletti
•  Richard F. Caravella
•  Joseph V. Carlozo
•  Charles Chiampi
•  Thomas Greg Christian
•  Craig Coder
•  Ron Coder
•  Mike Conforto
•  F. Len Consalvo
•  Bill Crummy
•  Steven A. Davis
•  Chris Devlin
•  Joe Diange
•  Thomas F. Donchez
•  Rocco English
•  Scott Fitzkee
•  Chuck Fusina
•  Paul Gabel
•  Steve Geise
•  Doneal Gersh
•  Bill Glennon
•  Tony Gordon
•  David F. Graf
•  Mike Guman
•  Brian Hand
•  Franco Harris
•  Scott Hettinger
•  Ron Hileman
•  Ron Hostetler
•  Thomas M. Hull
•  Neil Hutton
•  David W. Klock
•  Bob Knechtel
•  Richard A. Knechtel
•  Joe Lally
•  Philip F. LaPorta
•  John R. Lewchenko
•  Larry J. Ludwig
•  Mark J. Markovich
•  Brian Masella
•  Rich Mauti
•  Richard McClure
•  Lance Mehl
•  D. Scott Mitchell
•  Guy Montecalvo
•  Robert Nagle
•  Daniel F. Natale
•  Richard N. Nichols
•  Thomas Odell
•  Michael A. Orsini M.D.
•  Woody Petchel, Jr.
•  Carlos Quirch
•  Tom Rafferty
•  Joel Ramich
•  John M. Reihner
•  Paul Renaud
•  Robert Rickenbach
•  James E. Rosecrans
•  George SanFilippo
•  Carl Schaukowitch
•  Bernard Shalvey
•  Tom L. Shoemaker
•  Micky Shuler Sr
•  Tom Shuman
•  John Skorupan
•  Steven E. Stilley
•  Donald P. Tarosky
•  Raymond Tesner
•  Gary R. Tyler
•  Alberto Vitiello
•  Marshall Wagner
•  Dan Wallace
•  Alex Wasilov
•  Franklin Frog Williams
•  John Williams
•  Thomas J. Williams
•  Charles Wilson
•  Roger Alexander
•  Michael Arnold
•  Walker Lee Ashley
•  Mark Battaglia
•  Trey Bauer
•  Jeff Bergstrom
•  Todd Blackledge
•  Scott Bouslough
•  Kirk Bowman
•  Don Brinsky
•  Tim Bronish
•  Keith Brown
•  Jeff Brunie
•  Jeff Butya
•  Drew Bycoskie
•  Mark Cherewka
•  Chris Clauss
•  Joel Coles
•  Bill Contz
•  Tom Couch
•  Troy Cromwell
•  Peter Curkendall
•  Rich D’Amico
•  John DePasqua
•  Dwayne Downing
•  Michael Dunlay
•  Thomas Durant
•  Eric Etze
•  Craig Fiedler
•  Tim Freeman
•  Mark Fruehan
•  Brennan Gaertner
•  Mark Galimberti
•  Mike Garrett
•  Gene Gladys
•  Scott Gob
•  Nick Haden
•  Lance Hamilton
•  Albert Harris
•  Greg Hay
•  Stu Helgeson
•  Joseph Hines
•  John Hornyak
•  Randy Huttenberger
•  Timothy Janocko
•  Joe Johns
•  Eddie Johnson
•  Greg Jones
•  Keith Karpinski
•  Ken Kelley
•  Matt Knizner
•  Rich Kuzy
•  Massimo Manca
•  Kirk Martin
•  Carmen Masciantonio
•  Brian McCann
•  Matt McCartin
•  Donald Jay McCormick
•  Shawn McNamara
•  Mike Meade
•  Rob Mikulski
•  Dan Morgan
•  Bob Ontko
•  Aoatoa Polamalu
•  Bobby Polito
•  Ed Pryts
•  Scott Radecic
•  Terry Rakowski
•  Kevin Romango
•  Dwayne Rush
•  Michael Russo
•  Rich Schonewolf
•  John Shaffer
•  Brian Siverling
•  Patrick Slater
•  Rob Smith
•  Pete Speros
•  Joseph Strycharz
•  Mike Suter
•  Tim Sweeney
•  John Walsh
•  Darryl Washington
•  Steve Wisniewski
•  Jeff Woofter
•  Jeff Anderson
•  John Andress
•  Steve Babinchak
•  Michael Barninger
•  Tom Bill
•  Dave Brzenchek
•  Mike Carroll
•  Robert Ceh
•  Kerry Collins
•  Brett Conway
•  Bob Daman
•  Maurice Daniels
•  Daniel Drogan
•  Adam Fahrer
•  Douglas Farren
•  Gerald Filardi
•  Derek Fox
•  Reggie Givens
•  Rudolph Glocker
•  Ryan Grube
•  Shelly Hammonds
•  Jeff Hartings
•  Leonard Humphries
•  Greg Huntington
•  Chad Linnon
•  Rob Luedeke
•  Mike Malinoski
•  Joe Markiewicz
•  Christian Marrone
•  Tony Matesic
•  OJ McDuffie
•  Tom Molnar
•  Joe Nastasi
•  Kevin O’Keefe
•  Brian O’Neal
•  Brandon Palmer
•  Ryan Seese
•  Brandon Short
•  Dave Smith
•  Terry Smith
•  Vincent Stewart
•  Lance Antolick
•  Jason Bisson
•  Mike Blosser
•  Jeremy Boone
•  James Boyd
•  Brian Brozeski
•  Dorian Burton
•  Gino Capone
•  Daryll Clark
•  Brennan Coakley
•  Dan Corrado
•  Jeremiah Davis
•  Steven Delich
•  Larry Federoff
•  Gus Felder
•  Shamar Finney
•  Eric Flohr
•  Joshua Gaines
•  Phil Gardill
•  Nathan Glunt
•  Ryan Gmerek
•  Tom Golarz
•  Andrew Guman
•  Benjamin Gummo
•  Joe Hartings
•  Erik Holt
•  Tom Humphrey
•  Justin Ingram
•  Joe Iorio
•  Cedric Jeffries
•  Bryant Johnson
•  Michael Johnson
•  Bobby Jones
•  Jim Kanuch
•  Brad Karson
•  Ben Lago
•  Kevion Latham
•  Tyler Lenda
•  Mike Lukac
•  Jordan Lyons
•  Nick Marmo
•  Shawn Mayer
•  Anthony Morelli
•  Jordan Norwood
•  Anwar Phillips
•  Andrew Pitz
•  Paul Posluszny
•  Curt Reese
•  Matthew Rice
•  David Royer
•  Bryan Scott
•  Ryan Scott
•  AQ Shipley
•  Mickey Shuler
•  Jonathan Stewart
•  Nick Sukay
•  Tyler Valoczki
•  Casey Williams
•  Thomas Williams
•  Michael Yancich
•  Alan Zemaitis
Coaches and staff
•  Dick Anderson
•  John Bove
•  Booker Brooks
•  Craig Cirbus
•  Don Carlino
•  Raymond J. Horan
•  George Salvaterra

Editorial Comment–“We are Penn State, and we want the truth.  We are standing behind our traditions, values, and motto of Success with Honor–Joe Paterno’s “Grand Experiement”  that now graduates more Division 1 Football players than any other University!”–Myke Triebold

Under Emmert, NCAA enforcement division has gone from bad to worse

 NCAA insiders cite meddling from president Mark  Emmert as a major reason the enforcement division is in disarray.

In a comprehensive story in this week’s Sports Illustrated, senior  writers Pete Thamel and Alexander Wolff go inside the Nevin Shapiro case at  Miami and explore how the NCAA mishandled it. Here is some additional  information that doesn’t appear in the story. For the complete magazine story  and to buy a digital version of the issue, go here.

On May 11, 2011, all NCAA employees were required to attend a day-long  meeting that began at the ballroom of the J.W. Marriott near NCAA headquarters  in Indianapolis.

When the employees returned to the NCAA’s offices that day, they found  banners featuring corporate buzzwords like communication, accountability and inclusion had replaced banners of famous  athletes and inspirational quotes. The sidewalks and bridge near NCAA  headquarters featured similar messages.

The day marked the grand rollout of One Team One Future, one of NCAA  president Mark Emmert’s internal initiatives to improve the work culture at the  NCAA.

What unfolded epitomizes Emmert’s two-and-a-half-year NCAA tenure — plenty  of flash with little tangible results. When NCAA employees arrived at their  desks that day, their computer screen savers and phone backdrops were adorned  with One Team One Future logos. But they weren’t quite prepared for the  grand rollout, with Emmert’s introduction coming by a voice-of-God narrator amid  a backdrop of music, strobe lights and video.

“It’s the Jim Carrey movie Yes Man, where he goes to that big  inspirational thing,” says former NCAA investigator Abby Grantstein. “The  culture of the NCAA wasn’t like that before, and you can’t change it in one  day.”

She added that the message was clear: “It was like, ‘Get on the bus or go  home.'”

WOLFF: Nevin Shapiro is still talking from jail

SI spoke with more than 20 current or former NCAA employees about the  troubles of the NCAA enforcement staff for a lengthy story in this week’s Sports Illustrated. A portrait emerged of a department battered by  turnover, afraid of lawsuits and overwhelmed by scandal. One ex-enforcement  official told SI, “The time is ripe to cheat. There’s no policing going on.”

In many interviews with NCAA officials about enforcement, the topic quickly  shifted back to the leadership of Emmert, who is known internally at the NCAA as  the “King Of The Press Conference.” That’s not a compliment.

One of the biggest criticisms of Emmert is his desire to be in the spotlight.  (Emmert declined multiple requests to speak with SI for this story. Spokesman  Bob Williams says Emmert’s increased public profile has been at the request of  the NCAA’s Executive Committee.)

Even one of Emmert’s supporters could come up with few positives for One  Team One Future, calling the rollout “mechanical.” The NCAA employee  compared it to an Apple shareholder meeting. “Some of that may have rubbed  people the wrong way,” the person said. “I think it reflects the approach and  style that Emmert brought to the position, whether that’s good or bad, it’s the  reality of it.”

The reality is that NCAA culture needs to change, as it’s entering a time of  great transition. The enforcement staff is fighting the perception that it’s  meek, and many of its most talented investigators have left the association.

When talking to a dozen college officials to get a pulse on Emmert, many  struggled to answer the question, “What has he actually accomplished so far in  his tenure?” Even the harsh sanctions against Penn State in the wake of the  Jerry Sandusky scandal ($60 million fine, four-year bowl ban and the loss of 40  scholarships over four years) has painted Emmert in a bad light  after he went on a television tour, which some perceived as a victory lap, to  talk about the unprecedented action by the NCAA.

The NCAA has failed to pass most of the initiatives Emmert has trumpeted.  Many agreed with the ideals behind Emmert’s ambitious agenda, including trying  to give scholarship athletes a small amount of money to cover the full cost of  school, and paring down the rulebook. But the lack of results have highlighted  the growing schism between haves and have nots in Division I and further  polarized the athletic directors who feel largely ignored and highlighted how  out-of-touch Emmert is with his constituents. There’s been tremendous turnover  in top-level NCAA jobs under Emmert, to the point where many administrators  complain that they don’t even know who to call at the NCAA anymore. And therein  lies the irony of Emmert’s One Team One Future attempt — ideals like  communication, collaboration and inclusion sound great, but they’re missing  among the membership.

“I’m really concerned,” said one high-ranking college administrator. “There’s  a need for a healthy NCAA. It’s not healthy right now.”

Morale is at an all-time low among the enforcement staff as several respected  veterans — Dave Didion (Auburn), Marcus Wilson (Maryland) and Chance Miller  (South Carolina) — have left for college compliance positions since April. On  Tuesday the department received another huge blow when Rachel Newman-Baker, the  managing director for enforcement, development and investigators, left for a  compliance job at Kentucky. Newman-Baker is the highest ranking member of the  department to leave since enforcement vice president Julie Roe Lach was fired in  February in the wake of missteps in the Miami investigation.

“With Rachel gone,” another ex-NCAA staffer said, “there’s really only two  investigators (Angie Cretors and LuAnn Humphrey) left with experience in major  football and basketball cases.”

Last week, interim director of enforcement Jonathan Duncan told SI: “It’s  been a tough time for the enforcement staff.”

One of the driving forces of the enforcement exodus came from seeing how  Emmert’s office handled the Miami debacle. The NCAA knew about the issues  regarding the financial arrangement between Nevin Shapiro’s lawyer and  investigator Ameen Najjar for months, but Emmert’s remarks to the press — “a  shocking affair” — came off as if he’d just been informed that morning and  needed to express his outrage publicly.

Many staffers felt like Lach was the scapegoat, as the 52-page external report shows she directed Najjar’s request  through the proper channels. Jim Isch, the No. 2 behind Emmert at the NCAA, also  knew of the arrangement and offered financial support, but he faced no  repercussions. No logical explanation of that disconnect was provided.

How the NCAA handled Tom Hosty didn’t help either; weeks after Hosty was  demoted from managing director to director of enforcement, Isch informed the  staff of the demotion at a meeting and walked out as jaws dropped to the floor.

“They know if the s— hits the fan, they’re not going to be backed up by  anyone,” said one ex-investigator.

As the NCAA moves forward, the reality of Emmert’s future is tricky. “When  you get to the position Mark is in right now,” said another college  administrator, “it’s how and when you are leaving, not if.”

That’s easy to say, but that pace of change in both academia and in the NCAA  is unbearably slow. As one former staffer said of NCAA business: “You realize  that it takes 100 internal emails for you to get the one e-mail that says  nothing.”

Academia is arguably worse, as the average search for a college president  takes a year. There are few groups of powerful people more collectively risk  averse than college presidents, who when deciding on whether to blow their nose  insist on forming a sub-committee to dissect proper tissue texture. In other  words, getting a group of college presidents together to make a bold move like  firing Emmert is highly unlikely. Emmert could realize he’s in an untenable  position and jump to another job, but that isn’t likely either (he reportedly  makes $1.6 million per year).

It should be noted that Emmert does have supporters, particularly among  Pac-12 presidents, as he came to office from Washington. He helped hire Pac-12  commissioner Larry Scott and counts Oregon State’s Ed Ray among his closest  confidants.

But elsewhere, Emmert’s support is tepid at best. He proved helpless during  realignment, has been overwhelmed by constant scandal and has been unable to get  his reform measures through the muddled NCAA governance structure.

Even worse, public perception of the NCAA under Emmert is at an all-time low.  (This stinging USA Today story that exposed Emmert’s  messy handling of a large-scale construction project while at UConn didn’t help  Emmert’s reputation.) The mass exodus of talented employees speak much louder  than his corporate buzzwords. And that’s something that can’t be changed with  flashy lights or new screen savers.football/news/miami-ncaa/#ixzz2W6TuD0TJ

Rush to judgment: Penn State trustee recounts decision to fire Coach Joe Paterno

Posted on March 10th, 2013 in News and Commentary

“Let me be clear – we got this wrong.”

“None of us are proud of how we handled this.”

by Bill Keisling

Penn State trustee Stephanie Nolan Deviney is up for reelection to the school’s governing Board of Trustees. On March 9, on her webpage, she responded to the following question: What was your thought process with respect to Coach Paterno?


“Saturday, November 5, 2011, I received an email from a fellow PSU grad at approximately 3 p.m. with a messaging along the lines of ‘I bet you never thought you signed up for this!’ There was also an email from the university scheduling a conference call. Realizing something was going on I googled ‘Penn State’. This is how I learned the news.

“I immediately searched the web and found the presentment. I read the entire thing by our 5 p.m. call. When I read the presentment my initial reaction was that we needed to determine who knew what and when. The Presentment stated that Coach Paterno had been told of activity “of a sexual nature” between Sandusky and a young boy. During our call we planned a meeting for 7 p.m. the next evening.

“When I arrived at Old Main I was given a press release that had been issued by the Paternos. I asked if the press release had been run by anyone at the university before it was issued. I was told it had not been run by the university. When the decision was made to cancel the regularly scheduled press conference, there was no agreement with this decision. Instead, the press was told to stay tuned as plans were in the works for an off campus press conference (no such conference ever took place).

“At that time it was clear that the university’s interests and Coach Paterno’s interests were not aligned. We should have been working together on this issue – the biggest crisis the university had ever faced. Rather, we were two ships not communicating with one another. I did not think these actions were in the best interests of the university. My decision to remove Coach Paterno as head coach was largely based on the events that transpired after the presentment was issued.

“The trustees had a call on Tuesday night during which time I thought we would decide what actions to take with respect to Coach Paterno and Graham Spanier. However, many trustees thought that such a decision could not be made over the phone. Rather, we needed to be face to face, to look each other in the eye, to read each other’s body language in making such a monumental decision. We agreed to make the decision on Wednesday night when we met in person.

“I could not sleep that night as the decisions weighed heavily on my mind. I did not know what other trustees were going to decide. I appreciate all this University has done for the Commonwealth. I appreciate all Joe Paterno has done for Penn State. I understood what Penn State meant to so many people. I understood the magnitude of the decisions we would make the next day. No matter what we decided, we would forever change people’s lives, Penn State, and history. This decision was left in the hands of 32 people. I was one of them.

“On Wednesday Coach Paterno announced his retirement without consulting with the university.   

“By Wednesday evening none of the trustees thought that the football season could go on “business as usual” with Coach Paterno on the sidelines and in front of the press. As such, we made the decision to remove him as head coach for the remainder of the season. We did honor his contract. Yes, I have seen the letter that Cynthia Baldwin sent to him. It should not have been sent to him.

“It seems so clear now that the university and Coach Paterno should have been speaking to each other and working with each other during those five days. Looking back it seems unbelievable that neither side communicated with one another. I often think of how things might have been different if any small changes were made that week. Posnanski recently wrote that after reading the presentment, Coach Paterno’s own family told him that he might have to face the possibility of never coaching another game. Under such circumstances it saddens me that we didn’t find a way to handle this better. We both should have been working together. When we made out decision, it was around 9 p.m. at night. It has also been widely reported why we made the decision to call his home. First, there were news vans and students surrounding his home. We did not think it was appropriate to have such a message be delivered so publicly. It surely would have been caught on camera. No one would have liked that either. Second, we did not think we could wait until the morning as many details of our meetings that week were reaching the press. The last thing we wanted was for Coach Paterno to hear the news from the press. Let me be clear – we got this wrong.

“I agree 100 percent with Sue Paterno’s statement – Joe Paterno did deserve more.”  (sorry, Stephanie, too little too late–where have you been for the past year and a half?  Why were you and Paul Suhey not out there with McCombie and Lubrano asking the important questions?)

“Every board member has a tremendous amount of respect and admiration for all that Joe Paterno and his family did, and continue to do, for our university. He influenced and molded countless men. He and Sue were generous with their time, money, and talent. You may wonder how we could all feel this way and still remove him as head coach but as fiduciaries we had to make the decisions in the best interests of the University.”

editor note:  it is my opinion that the Board of Trustees (John Surma) had a vendetta against Joe Paterno to not only fire him but to destroy his reputation, and that was the goal (not necessarily known by the general board membership).

Erickson Awarded 85,000 Salary Increase

The Board of Trustees approved a pay increase for Penn State President Rodney Erickson as part of a protocol that includes an evaluation one year after Erickson assumed his role as president.

The increase will raise Erickson’s salary from $515,000 to $600,000, according to a press release issued via Penn State Live.

Erickson’s new salary will now put him in the 50th percentile of base salaries for presidents from institutions similar to Penn State. The increase is performance-based because Erickson’s contract is concerned with salary and a benefits package only.

The salary increase comes after the board conducted an annual performance review that focused on factors such as leadership, planning and resource development, and management of financial resources. The discussion to increase the president’s salary has been under consideration since the summer, said Trustee Anthony Lubrano.

The board recently finalized the discussion to give Erickson an $85,000 raise.

“The entire board had a general discussion in November,” Lubrano said.

Erickson, although a voting member of the Board of Trustees, was not present at the discussion in November, Lubrano said.

Lubrano said that there was no formal vote taken on the salary increase. He said that he was made aware of the increase today.

Although there was no formal vote, Board of Trustees Chairwoman Karen Peetz issued a statement in support of Erickson and the increased salary.

“It is imperative that we have a strong, effective leader to ensure our future excellence. Rod Erickson is that leader,” Peetz said in a press release.

Penn State Trustee Speaks Out on Due Process

From Trustee Ryan McCombie
10 August 2012
To: The Pennsylvania State University Board of Trustees
As I noted during the Board meeting last Tuesday (August 7), my principal issue in this ongoing saga is the lack of fairness and due process that has been afforded the University and other parties, including persons completely innocent of any wrongdoing, at the hands of the NCAA. My focus in the protective notice of appeal that was filed, and in future proceedings that may be considered, will not be on the authority of President Erickson; rather, it will be on the unlawful and extortionate actions of the NCAA, and the “rush to judgment” that has occurred as a result. This Board should not become a part of this rush to judgment under the guise of attempting to put this matter behind us. So long as the full truth has yet to come out, and there has not been a fair and thorough adjudicative process, this institution will be unable to truly begin a healing process.
Everyone should understand that at the moment in time and under the circumstances that were presented to President Erickson, he faced truly draconian choices. Under the duress of the tyrannical and unbridled power of the NCAA – – power to impose sanctions and penalties not only on our University but an entire region of Pennsylvania – – President Erickson did what I believe most of us would have done. Standing before an almighty adversary with academic, economic and other lives at stake, bravado is seldom a good tactic. Our President knew that he could be criticized for his difficult decisions, but his responsibility was to protect and mitigate the damage that had been done to what he held dear and was responsible to defend. At that moment in time, I believe President Erickson acted with courage and self sacrifice.
It is however, the very imposition of these circumstances of unbridled power, lack of due process, and total lack of accountability by an organization which has acquired immense power, that I protest. By their own admission this was not a negotiation, it was a “cram down” intended to do grave damage to this University and its reputation.
When I see fear in the eyes and voices of University Presidents, Athletic Directors and coaches when discussing the NCAA, I know something has gone fundamentally wrong. No one should fear their government or governing body. The unchecked power of the NCAA and its ability to decree and impose penalties on its members, and by extension their communities, without due process or the rule of law – even their own – must be reviewed.
There have been a great many mistakes made in this Shakespearean tragedy, but it is culminating in the authority of an organization that has become too powerful and too willing to use that power well beyond its charter, by-laws or established precedent.
I have just had an opportunity to read the email by Joel Myers with his suggestions and proposals for moving forward on these issues. I fully support and endorse Mr. Myer’s recommendations and the reasons behind them. The NCAA’s consent decree, to which I take exception, criticizes this Board for failing to “perform its oversight duties” and for failing in its “duties to oversee the President and senior University officials.” We should not fall victim to these same fiduciary shortcomings now, simply because it will help take the attention off the NCAA or make it easier for them to deprive certain parties with their rights to have the decree reviewed by an independent appeals committee. To allow sufficient time for the full and deliberative review that Mr. Myers suggests, I will instruct my counsel to refrain from further prosecution of pending appeals or consideration of other legal actions. It is time to pause, reflect and be fully informed as a Board before casting further votes that will impact the present and future of this great University. Let’s not continue this rush to judgment and pursuit of closure for the sake of closure.
Ryan McCombie August 10, 2012

Penn State trustees led by Ryan McCombie file appeal

Story by Dan Van Natta, ESPN

A Penn State board of trustee member filed an appeal Monday afternoon with the NCAA over sanctions levied against the university after the Jerry Sandusky child sex-abuse scandal.

Three other trustees joined the appeal, which states that the consent decree university president Rodney Erickson signed with the NCAA agreeing to the sanctions is “null and void” because Erickson “lacked the legal authority” to enter into such an agreement without the board’s approval.

Trustees and a person with first-hand knowledge of the discussions said the move is a precursor to a federal lawsuit asking a  judge to invalidate the sanctions, because trustees expect the NCAA to reject the appeal.

ESPN The Magazine: On death’s door

ESPN The Magazine’s Don Van Natta brings you inside the secret negotiations that brought Penn State football to the brink of extinction. Story

PDF: PSU trustees’ letter of appeal

The appeal, sent to the NCAA from attorneys hired by Ryan J. McCombie, a retired Navy SEAL who joined the 32-member board in June, also challenges the NCAA on the following fronts:

• The NCAA did not give Penn State trustees and the university due process when it did not follow its usual investigation and enforcement procedures.

• The consent decree is fundamentally unfair because it relies on the Freeh report, which “contains findings and conclusions not that are contrary to the evidence presented …”

• The sanctions are “excessive and unreasonable” because they inflict “permanent damage to an entire generation of student-athletes and coaches who were innocent of any wrongdoing during their time on campus …”

Erickson signed the consent decree late last month with the NCAA after consulting with board chairwoman Karen Peetz and university counsel, but he did not bring the decree to the full board for review or a vote.

The package of sanctions included a $60 million fine, a four-year bowl ban, scholarship losses and the vacating of wins from 1998 through 2011.

McCombie hired Boston attorneys Paul Kelly and Gregg Clifton of Jackson Lewis to file the appeal and wrote a letter to trustees Monday afternoon asking them to join him in his effort. Three trustees nearly immediately joined him. Kelly declined to comment, and McCombie did not return a message seeking comment.

McCombie, one of three new trustees elected by alumni to the board, was one of the most outspoken trustees at a July 25 board session about Erickson not consulting a majority of trustees before signing the consent decree, trustees said.

After that three-hour session in State College, the board issued a statement saying it was standing by Erickson’s decision to sign the consent decree. ESPN The Magazine reported last week the university was facing a four-year death penalty if Erickson had not signed the decree, and that the NCAA had warned Penn State that if there were a leak about proposed sanctions to the media, the discussions would end and the death penalty would be all but certain.

In his letter to trustees Monday, McCombie wrote: “It is my belief that this matter did require board approval and that we should engage in a full, and complete, review. In the end, we all benefit from having this matter handled correctly and with full regard for due process — only then can we be truly confident in the result and the actions we take as a board.

“Furthermore, only after we have given all involved the opportunity to be heard can we move forward together as one university.”

Penn State spokesman David La Torre declined comment. NCAA spokesman Bob Williams said the Penn State sanctions are not subject to appeal.

Last week, attorneys for the family of former coach Joe Paterno requested the NCAA hold an “open hearing” before its Infractions Appeals Committee of the package of sanctions accepted by Penn State. The NCAA quickly rejected their request.

“The Penn State sanctions are not subject to appeal,” Williams said last week.

McCombie closed his letter by writing: “I know my actions will be poorly received by some on this board and in the community at large. To that end it would be easier to remain silent and allow these unfair actions to remain unchallenged. I cannot do this.”

Much of the McCombie appeal takes aim at the Freeh report, an investigation commissioned by the board of trustees last November after the Sandusky sex-abuse charges became known. The board hired former FBI director Louis B. Freeh for $6.5 million to investigate the university’s role in the sex abuse scandal.

Freeh’s report contains damning allegations against university employees and trustees, concluding that the board did not perform its oversight duties. The NCAA relied on the Freeh report to determine what sanctions should be handed down to Penn State

How the Penn State Trustees Sold Out to the NCAA

excerpted from Dan Van Natta, ESPN

Only Peetz and her executive committee were told about the consent decree or that sanctions were imminent. Those trustees did not tell their colleagues. This was by necessity, university officials say. The NCAA had warned Penn State that if there was a leak about proposed sanctions to the media, the discussions would end and the death penalty would be all but certain.

On Sunday, July 22, workers arrived at the Paterno statue before dawn. By 8:40 a.m., the statue was removed and carted by forklift inside Beaver Stadium. A trustee said hopefully that morning, “Maybe this will help us with the NCAA. It shows that we are moving on.” But minutes later, the NCAA issued a news release that at 9 a.m. the next day in Indianapolis, Emmert and Ray would announce sanctions against Penn State. “Unprecedented” sanctions, the media reported.

“I can’t believe this s—,” said the trustee. “No one told me a damn thing.”

At the news conference, Emmert outlined the sanctions and expressed hope that they would be both punitive and “corrective,” helping Penn State change its “football first” culture, which he said had allowed a sexual predator to run amok for a decade. Copies of the consent decree made public credited Penn State for commissioning the Freeh report and for its reaction to the findings. “Acknowledging these and other factors,” it read, “the NCAA does not deem the so-called ‘death penalty’ to be appropriate.”

It was co-signed by Emmert and Erickson.

So in the end, a negotiation did occur. It just didn’t much involve the university’s stewards, the board of trustees. In the aftermath of the Freeh report, Peetz, vice chairman of The Bank of New York Mellon, says the board is committed to changing its makeup and getting off the sidelines. Erickson will retire inside a year. Public funding for universities is declining. The NCAA has put Penn State’s athletic program, including football, under the watch of an athletics integrity monitor, former U.S. Sen. George Mitchell. It’s hard to argue a more effective board that’s ready to move on wouldn’t benefit everyone.

Yet some trustees see little positive in moving forward with Penn State football so changed. Some trustees argue that the package of sanctions was worse than the death penalty. Some remain furious at Erickson. The Freeh group had criticized the board for knowing little about the Sandusky matter and doing even less. And now, when it came to one of the biggest financial decisions in Penn State’s history, a majority of the trustees had no idea that Erickson and lawyers were hammering out the agreement. At a three-hour discussion on July 25, trustees demanded answers for the lack of communication, and Erickson and Marsh explained the NCAA demands. Marsh repeated his analogy that it was like “a cram-down,” which some trustees later said made sense to them. Afterward, the board released a statement standing by Erickson and saying that if the penalties had not been accepted, the outcome would have been far more Draconian.

Trustees who remain angry are mad at themselves too. Several say the board should  not have tacitly accepted the Freeh report’s findings within hours of its release. The circumstances have a handful of trustees discussing how to overturn the decree in court. (On Aug. 3, the Paterno family formally challenged the consent decree, filing an intent to appeal with the NCAA.)  “This was such overkill,” one trustee says. “It’s like walking around with a dagger in you. Emmert and  the NCAA are basically ruining this university. They are destroying the school.”

Indeed, much of the fury is directed at Emmert, who in the end may actually have kept the football program on the field. “What I have seen of him and heard of him, I just can’t stand the guy,” one trustee says, noting Emmert’s comfort roaming the stage during the July 23 presser and his media availability afterward.

Some trustees complain that the NCAA used sanctions as an opportunity for university presidents to exact revenge: The Penn State Way of piling up victories while graduating players at the highest levels was something their own schools could not do.

Mark Emmert showed himself to be a sanctimonious hypocrite,” says Anthony Lubrano, a trustee who joined the board in July and is an unabashed Paterno supporter. “Joe Paterno had more integrity in his little finger than Emmert has in his whole body.”

For her part, Peetz, the board chair, would not discuss the simmering anger of some trustees. Through a spokesman, she said, “The decision by President Erickson to sign the consent decree was a painful one, but it was clear the alternative was far more painful. The board supports the decisions that have been made, and we are focusing on the future. It is time to move forward

Did Penn State President Act in the BEST Interest of the University?

From the NY POST

Many alumni and some trustees are incensed over the unprecedented NCAA  penalty — which likely will cripple Penn State’s football team for years to come — and Penn State’s quick acceptance of it.

The Pittsburgh Post-Gazette reported Wednesday that Gov. Tom Corbett said the  penalties imposed on Penn State “go well beyond” those with responsibility for  the handling of the sex abuse allegations against Sandusky.

“What’s important to note is the kids that are up there right now, whether  they are students or the student-athletes, the members of that team or the  members of any other team, had nothing to do with this. Nothing,” Corbett said.  “And they are the ones that, unfortunately, are bearing the brunt of this. And  that’s what I find difficult.”

A person with knowledge of the trustees’ meeting said earlier Wednesday that  trustees were to discuss whether Erickson had the authority to agree to the  sanctions without first getting the board’s approval. The person was not  authorized to discuss the meeting and spoke on condition of anonymity.

Some trustees had expressed concern that Erickson may have violated a board  rule that says the board must authorize the signing of “contracts, legal  documents, and other obligations.”

The board statement made no reference to the propriety of what Erickson had  done, saying trustees held a discussion but did not take any votes.

“The board finds the punitive sanctions difficult and the process with the  NCAA unfortunate,” the statement said. “But as we understand it, the  alternatives were worse as confirmed by NCAA President Mark Emmert‘s recent  statement that Penn State was likely facing a multi-year death sentence.”

La Torre said Wednesday that Erickson had authority to act without the  approval of the full board.

Please comment!  I would love to send copies of your comments to the Board of Trustees at Penn State!