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New standards for Smithsonian museums

(AP)
Updated: 2007-06-19 08:28


WASHINGTON - The Smithsonian Institution's governing board clamped down
Monday on how the museum complex conducts its business. The changes
followed Smithsonian Secretary Lawrence M. Small's resignation in March
amid criticism about his compensation and spending.

Under the changes, high-ranking executives at the museum complex will be
barred from serving on corporate boards. The Board of Regents also called
for the creation of a new chairman position, one that will interact with
Smithsonian leaders on a weekly basis.

In all, the board adopted 25 recommendations following a nearly
three-month review by its governance committee, which called for
increased oversight and transparency to conform with the best practices
of nonprofit organizations.

Small had served on two corporate boards, including the Chubb Group, one
of the Smithsonian's insurers, which paid him $169,675 last year in cash
and stock. Marriott International Inc. had also paid Small $208,000 in
direct pay, stock and other compensation in 2006 for serving on its board.

Deputy Secretary Sheila Burke has also sat on two corporate boards,
including Chubb, which paid her nearly $194,676 last year in cash and
stock. Burke resigned Monday, saying she believed the Smithsonian needed
new leadership.

"To avoid even the appearance of conflict of interest ... Smithsonian
senior executives shall not be permitted to serve on the board of a
for-profit company," the committee wrote.

"The Smithsonian is a great place, and it deserves the best governance,"
said Roger Sant, chairman of the board's executive committee. "We
continue to express real regret and accept responsibility for the lack of
strong oversight of the former secretary and the Smithsonian in general."

Sant said the board considered options ranging from modest changes to the
resignation of the entire board. But he said the board chose to reform
its practices.

"My first impression is this is a good start," said Sen. Charles
Grassley, R-Iowa, who has been critical of the Smithsonian's oversight
and business practices. "I appreciate the board's recognition that
business as usual is over and that a new era is in order."

A report due Wednesday from an independent panel that examined the
board's handling of Small's expenses will offer its own set of
recommendations.

Many board members did not know critical details of Small's employment
contract, and were unaware of tension between the Smithsonian museums and
its central administration over the past seven years, the committee found.

The report called for the creation of a Smithsonian Code of Ethics, a
unified compensation system for its federal and private trust fund
employees and a public forum each year to emphasize the board's openness
and "culture of accountability." The board pledged to follow the spirit
of the federal Freedom of Information Act for public information requests
and will create a policy for such disclosures.

The Smithsonian's 18 museums include the National Air and Space Museum,
the National Museum of American History and the National Museum of
Natural History. The National Zoo is also part of the Smithsonian, and a
19th museum devoted to black history is under development.

An internal audit in January found that Small had made $90,000 in
unauthorized expenses since 2000, including private jet travel and
expensive gifts. The audit also found that Small charged the Smithsonian
more than $1.1 million for agreeing to use his mansion in Washington's
affluent Woodley Park neighborhood for official functions.











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