EXCERPT FROM THE CHRONICLE OF HIGHER EDUCATION ONLINE
Monday, June 10, 2002 (in "Today's News" section)
Philanthropist Halts Donations in Cleveland, Seeking to Force Change in
Case Western's Board
By CHRISTOPHER FLORES
Peter B. Lewis, a Cleveland-based billionaire philanthropist,
has suspended all donations in Cleveland in an effort to encourage
radical change in Case Western Reserve University's Board of Trustees.
Mr. Lewis, the retired president of the Progressive Corporation,
the fourth largest insurance company in the nation, has ceased all
philanthropic activities within Cleveland in protest of what he
considers Case Western's mismanagement of resources, most notably a
$36-million gift he made for a new building to house the Weatherhead
School of Management.
"I made a large gift and it started to become a very large gift.
So as I began to observe what was going on, I got focused on the Board
of Trustees because that is the core problem. The performance of this
institution is abominable in every way. It's a rotten mess. I don't like
to see wonderful institutions destroyed by ineptitude," he said.
The construction of the building, which was designed by noted architect
Frank Gehry and is named for Mr. Lewis, was originally estimated to cost
$25 million but has since expanded to $61.7 million. Mr. Lewis believes
that mismanagement accounted 70 to 80 percent of the increase. The
building is scheduled to open for classes this fall.
Mr. Lewis, who estimates that he has given somewhere in the range of
$10-million to $15-million to Cleveland institutions other than Case
Western, said that he believes that the university has a responsibility
to help elevate the city, a responsibility that he said has been shirked
for too long.
"The city of Cleveland desperately needs their leadership," said
Mr. Lewis. "They're leading us right down the hole. Beyond two or three
institutions, it is hard to identify any real quality having emerged
from Cleveland in a long time. Nothing happens here. There is no
vitality at any level, and where vitality starts is at the university."
Mr. Lewis now replies to requests for charitable donations
within Cleveland with a form letter explaining that he will make no
donations until he sees a "dramatic reduction in the numbers of CWRU
trustees and a significant increase in individual trustee commitment to
and support of the university."
Edward Hundert, the university's incoming president, defended
Case Western. "Mr. Lewis thinks that I don't have a chance of advancing
the university unless the board is reformed," said Mr. Hundert, who will
take office on August 1. He said that the trustees had "started a
governance review process about 10 months ago and have been vigorously
working on rethinking bylaws and membership and committee structure."
Review processes "are what bureaucrats do," said Mr. Lewis.
"Those trustees are going to have to resign, in my opinion. This place
needs a revolution. Hundert may be the guy to do it. I like him, but he
needs a new board."
"I have complete confidence in the board," said Mr. Hundert.
"When the board completes its work, I think that [Mr. Lewis] is going to
feel very positive about it."
But Mr. Lewis said he would not settle for anything less than a complete
restructuring, and that he believes his plan will initiate it.
"Cleveland is a very small town and the same people are on all
the boards," he said. "My view was if I can't cause the board to become
competent by writing them a check, maybe I can get rid of them by not
writing one and pointing it out to the whole community. This is my
Ghandi-esque move; doing something by doing nothing."