Give em hell, Barry, and thank you for your continued service.
Saw article Barry is suing our BOT
- Thread starter Sharkies
- Start date
Thank God for people of courage, like Mr. Fenchak and Mr. Lubrano.
At this rate, Barry isn’t going to be Grand Marshal of the homecoming parade.
Well, I certainly don’t know all the details but if it’s true a board administrator responded to another BoT member with “that is my decision. I’ll make sure you never get it (the requested info)” and “I’ve blocked your email” then that person should be named and shamed. That’s how you’re leading a BoT?
At this point the only hope is the state legislature eventually gets involved and blows up the insular BoT.
At this point the only hope is the state legislature eventually gets involved and blows up the insular BoT.
That information is in the filing.
I'll post a link to the entire filed document tomorrow.
Newsletter here:
Why I’m Suing the Penn State Board of Trustees – BARRY FENCHAK
Which contains more context and a tab to the entire legal filing - which will address a lot of questions.
Anyone with interest on the topic: I would STRONGLY suggest reading the entire filing - including the exhibits (which are mostly emails)
Why I’m Suing the Penn State Board of Trustees – BARRY FENCHAK
Which contains more context and a tab to the entire legal filing - which will address a lot of questions.
Anyone with interest on the topic: I would STRONGLY suggest reading the entire filing - including the exhibits (which are mostly emails)
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They know darn well to whom they are paying these huge fees
Any bets on whether the asset managers have connections to current and/or former trustees?
Any bets on whether the asset managers have connections to current and/or former trustees?
I hate our BOT. It is too large and full of me first egos that think they cannot be touched.
Good leaders (not necessarily the most successful ones by wealth attainment standards) reveal how they think and what info they used to arrive at a decision. Why? First, they actually had a plan of how to analyze, and second, it has the potential to (a) raise the level of those around them via an educational effect, and (b) raises trust - at least among those who care enough - in their process in subsequent situations.
Your leaders, Barry, likely don’t have a sound analysis plan and want to keep the masses at bay. The trust piece is funny in that many around you don’t care enough, so it’s hard to figure out how that nets out.
Your leaders, Barry, likely don’t have a sound analysis plan and want to keep the masses at bay. The trust piece is funny in that many around you don’t care enough, so it’s hard to figure out how that nets out.
From Barry's website today: https://barryfenchak.com/why-im-suing-the-penn-state-board-of-trustees/
On Tuesday I filed suit in Centre County, Pennsylvania Court of Common Pleas for declaratory and injunctive relief against the Penn State Board of Trustees, and Matthew Schuyler in his capacity as Board Chair.
Read Barry Fenchak's lawsuit here (PDF, 51 mb)
I did not take this action lightly.
My complaint is straightforward: by Pennsylvania legal statute Title 15 Section 5512(a), a trustee of a nonprofit corporation has the right to ‘access and copy the University’s books, records, and documents so long as doing so is reasonably related to the performance of the duties of a trustee.’ If the leadership refuses to provide that access, they are breaking the law. If some members of the corporation are provided that information and others are denied, that is also breaking the law. Part (b) of the statute says that a trustee may sue to ‘compel the inspection or the obtaining or providing of the information’.
You can read my complaint here. It’s not long, and I think you’ll find it interesting.
Since I was elected to the Board in 2022, I have made my concerns about the management of the Penn State endowment clear (see here, here, and here). The endowment is the University’s largest asset, currently valued at approximately $5 billion, and is managed by the Office of Investment Management. They are directly overseen by the Board, which maintains final responsibility for the endowment. The Board also appoints the members of an oversight group known as the Penn State Investment Council (PSIC). Trustees Brandon Short and Emeritus Trustee Barb Dolan are members of this council.
According to the PSIC policy statement ,“PSIC meetings are not subject to Open Meeting Laws and are only open to PSIC members and invited guests.” They don’t have to take minutes, or allow other trustees access to their information. Once a year they report to the full board but that presentation is a broad-brush overview with little detail provided.
Despite the secrecy, I have tracked publicly available information in the University’s IRS 990 endowment filings. Among the items of interest to me was the significant jump in administrative fees paid to investment fund managers beginning in 2016, a clear departure from the reasonable 75 basis points paid yearly between 2008-2015.
When I joined the Board in 2022 and requested relevant information regarding the endowment, I was told by Finance, Business, and Capital Planning Committee Vice-Chair Trustee Robert Fenza, “You don’t need it. You need to mind your own business and trust others.”
The next 20 months were a runaround of bouncing between being provided useless data instead of the information I requested and being told I was asking the wrong person. I was then reprimanded by Board leadership for requesting the information necessary to fulfill my fiduciary duties. My request culminated on February 16, 2024 when Finance, Business, and Capital Planning Committee Vice-Chair Trustee Mary Lee Schneider told me, “You will never be given that information. That is my decision, and I will make sure you never get it.”
Well. I had no choice but to take legal action, so here we are.
To be clear, I am making no allegations of malfeasance or gross negligence. But activities like those would be impossible to uncover without access to the information requested. And for the record, I hold several financial industry licenses and certifications so I do know what I’m looking for.
I am filing this motion pro se, or representing myself. I am fully aware of Abraham Lincoln’s advice, “The man who represents himself has a fool for a client.” But I have four kids, two of whom just graduated from college and two who are working their way through, and after discussing it with my wife it is clear that taking on large legal expenses was not an option. I am in debt to smart friends who love Penn State and have given their time and good counsel. That is the best kind of debt one can take on, and I am very grateful. I hope that I prevail.
I am happy to answer any questions you may have, and appreciate your support.
On Tuesday I filed suit in Centre County, Pennsylvania Court of Common Pleas for declaratory and injunctive relief against the Penn State Board of Trustees, and Matthew Schuyler in his capacity as Board Chair.
Read Barry Fenchak's lawsuit here (PDF, 51 mb)
I did not take this action lightly.
My complaint is straightforward: by Pennsylvania legal statute Title 15 Section 5512(a), a trustee of a nonprofit corporation has the right to ‘access and copy the University’s books, records, and documents so long as doing so is reasonably related to the performance of the duties of a trustee.’ If the leadership refuses to provide that access, they are breaking the law. If some members of the corporation are provided that information and others are denied, that is also breaking the law. Part (b) of the statute says that a trustee may sue to ‘compel the inspection or the obtaining or providing of the information’.
You can read my complaint here. It’s not long, and I think you’ll find it interesting.
Since I was elected to the Board in 2022, I have made my concerns about the management of the Penn State endowment clear (see here, here, and here). The endowment is the University’s largest asset, currently valued at approximately $5 billion, and is managed by the Office of Investment Management. They are directly overseen by the Board, which maintains final responsibility for the endowment. The Board also appoints the members of an oversight group known as the Penn State Investment Council (PSIC). Trustees Brandon Short and Emeritus Trustee Barb Dolan are members of this council.
According to the PSIC policy statement ,“PSIC meetings are not subject to Open Meeting Laws and are only open to PSIC members and invited guests.” They don’t have to take minutes, or allow other trustees access to their information. Once a year they report to the full board but that presentation is a broad-brush overview with little detail provided.
Despite the secrecy, I have tracked publicly available information in the University’s IRS 990 endowment filings. Among the items of interest to me was the significant jump in administrative fees paid to investment fund managers beginning in 2016, a clear departure from the reasonable 75 basis points paid yearly between 2008-2015.
When I joined the Board in 2022 and requested relevant information regarding the endowment, I was told by Finance, Business, and Capital Planning Committee Vice-Chair Trustee Robert Fenza, “You don’t need it. You need to mind your own business and trust others.”
The next 20 months were a runaround of bouncing between being provided useless data instead of the information I requested and being told I was asking the wrong person. I was then reprimanded by Board leadership for requesting the information necessary to fulfill my fiduciary duties. My request culminated on February 16, 2024 when Finance, Business, and Capital Planning Committee Vice-Chair Trustee Mary Lee Schneider told me, “You will never be given that information. That is my decision, and I will make sure you never get it.”
Well. I had no choice but to take legal action, so here we are.
To be clear, I am making no allegations of malfeasance or gross negligence. But activities like those would be impossible to uncover without access to the information requested. And for the record, I hold several financial industry licenses and certifications so I do know what I’m looking for.
I am filing this motion pro se, or representing myself. I am fully aware of Abraham Lincoln’s advice, “The man who represents himself has a fool for a client.” But I have four kids, two of whom just graduated from college and two who are working their way through, and after discussing it with my wife it is clear that taking on large legal expenses was not an option. I am in debt to smart friends who love Penn State and have given their time and good counsel. That is the best kind of debt one can take on, and I am very grateful. I hope that I prevail.
I am happy to answer any questions you may have, and appreciate your support.
To be clear, this is all about bringing back the JoePa statue, yes?
The difference in tone/support for this effort on this board versus the premium board is very interesting.
Barry’s time on the board is nearly over and then no one will ever have to pay attention to an egomaniac like him ever again
IMO, many don’t like things they perceive to be an impediment to Penn State Football success and/or portrays Penn State in a bad or unfavorable light.
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The difference between people who want to fix something and people who want to be heard is their approach. Barry's approach is much more about wanting to be heard.
Barry, you could have valid concerns, but the way you go about airing them inflicts more damage to the institution at large. This is an internal dispute. You expose all of us and damage our institiution reputationally when you pull a stunt like this.
If you were really concerned you were being stonewalled, you can bring that to the attention of folks without filing a lawsuit against the institution you seek to govern.
Barry, you could have valid concerns, but the way you go about airing them inflicts more damage to the institution at large. This is an internal dispute. You expose all of us and damage our institiution reputationally when you pull a stunt like this.
If you were really concerned you were being stonewalled, you can bring that to the attention of folks without filing a lawsuit against the institution you seek to govern.
And when you can’t resolve matters internally? Give up?
Barry has not exhausted other avenues to get the information he seeks. He has emailed a few people.
I’ll let Barry speak for himself, but I doubt highly that he took this step lightly.
Given Barry's very public nature of airing of any grievence he has, his definition of lightly and others varies significantly.
Some other endowment investment management fees:
Washington St - 1.5%
Texas - 0.8% (old data)
Illinois - 1.35%
Washington St - 1.5%
Texas - 0.8% (old data)
Illinois - 1.35%
Just resolve it internally. Sure. That will work, especially since power is evenly distributed across the board.
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Based on the timeline above, Barry has tried tirelessly to get access to something he should already have access to as an alumni-elected BOT member. GTFOH with this drivel about "airing" it the way he did. If anything, more sunlight on Mary Lee, Fenza and Schuyler is exactly what we need.
So Barry isn't capable of filing an FOIA request?
You guys would rather harm the institution publicly on what effectively boils down to an internal squabble over access to records for the endowment fees based on the premise of a fee structure that is 8 years old?
Resolve it internally:
Barry: Give me the information I should have had access to as a trustee from the beginning.
Trustee 1: No.
Barry: Give me the information I should have had access to as a trustee from the beginning.
Trustee 2: No.
*Rinse, Repeat*
Let’s also remember that there still is a small power bloc on the bot that controls everything. It’s not as though Barry can approach each of the other 35 trustees for the information he seeks and has a right to.
Penn State's 10 year endowed return is 9% which beats the mean by 1.8%. Should a university pay more for better performance or risk worse returns by paying less in fees with a lesser manager?
Is it all about the fees, or is it about returns less fees?
Because right now apples to apples, fees included, PSU's return is *well* in the money and *well* above average nationally.
Is it all about the fees, or is it about returns less fees?
Because right now apples to apples, fees included, PSU's return is *well* in the money and *well* above average nationally.
As the trustee's like to say .... You don't need to know or see that information.
You are full of poop. If you believe his account he tried the internal approach and was told to go pound sand.
I asked you all a question. What is your view?
Returns less fees are publicly available. We beat the street by 1.8%.
So...
@PSUFTG2
Barry, care to respond to this information and question?
From a post above: Is a FOIA filing an appropriate avenue to get the info you seek?
You and I likely have very different experiences in the corporate world. Your approach matters. More specifically, whom and how you approach matters.
Is it safe to say you’re associated with the U’s leadership? Explain why approaching others is both necessary and likely to be successful. Is it that the people he approach needed to defer? If so, why didn’t they say that, or did they and his account leaves that out?
I don't know dude, but I do know that Mary Lee responded to Barry "Go ahead but I won't get it, I've blocked your emails" .... does that sound like somebody capable of resolving this internally?
Bob - this is good, but you're missing the part where Trustee 2 says, [[blocked Barry's emails so unable to respond]]