ORU accepts the $62 million
ORU accepts $62 million, names Green head regent
The Journal Record
January 15, 2008
TULSA – Oral Roberts University entered a new era Monday after its board agreed in principle to adopt a shared-governance system proposed by the founder of the Mardel and Hobby Lobby retail chains. While a few details still require ironing out, both board of regents Chairman George Pearsons and future board chairman Mart Green expect those nuances to be worked out as early as Tuesday. “I’d say we’re about 99 percent there,” said Green.
If completed, that will finish a process started Nov. 27 when Green announced an $8 million family gift to the financially strapped university, with another $62 million promised if the school would accept a proposal to restructure the university evangelist Oral Roberts charted in 1963.
Those recommendations to adopt modern governing techniques responded to student and faculty unrest after a wrongful termination lawsuit accused former president Richard Roberts of misappropriating university funds to support his family’s lifestyle. Over the following four months reports surfaced of university shortfalls of $52 million or more, forcing short-term liquidity problems.
“We were able to do what we did in 45 days,” said Green. “It’s a sign of the need of the college to get past the bad news to the good news.”Green warned that the $62 million will not meet all of the university’s existing financial needs, but it will slow down necessary steps required to meet them. Pearsons said a university audit charting those needs remains under work.“The first $8 million is in the process of being spent,” said Pearsons, who will return to his ministry once this arrangement is completed. “It’s being used very well right now.”
In accepting the Green family proposal, the ORU Board of Regents agreed to replace both its spiritual and business boards with a single “board of trustees” led by Green, chairman of Mardel. The new board will start with 13 members, later growing to 22. Three of the existing ORU regents, plus Oral Roberts himself, will serve as trustees. Two ORU graduates will serve, joining a panel of business and ministry leaders. The current board, which will transition to a non-voting “board of reference,” will then recommend six other nominees to the new board, with three confirmed by the Green family to raise the number of trustees to 16.
Among the new board’s first assignments will be deciding how to continue on the university’s search to find a new president, who will work with the faculty to oversee daily university operations. Green said the trustees will appoint a committee to continue that search once it hears from the existing panel.
The trustees also will decide how to appropriate the $62 million donation, as well as naming its last six members.“We felt the ideas we brought forward were more important than the $62 million,” said Green. Mart Green will be the only member of his family serving on the new board.
When the Greens had made their original proposal Nov. 27, observers had suggested family members might hold two or three seats on the new board. Green stressed the new board would represent the students, faculty, alumni and other “stakeholders.” “I’m not getting people who will tell me what I want them to say,” he said. “I want a board that will tell me ‘no’ when they need to tell me ‘no.’”
By adopting the Green proposal in principle, Monday’s vote also addressed the separation of the university from the Oral Roberts Evangelistic Association and the adoption of governing bylaws.
If unsatisfied, the Green family will have seven days after the university’s final vote to revoke its proposal and commitment.
The board of regents’ final act Monday was to give former President Richard Roberts the honorary title of president emeritus, although he will have no administrative authority.
Pearsons said his family’s continued residence on the campus remains a legal issue to be determined. Officials said Oral Roberts will remain the university chancellor and a trustee for the rest of his life.“It’s the first day of a long process,” said Green, who estimated this effort may require one to three years before he steps down. “These changes take time. Working together, it will all work faster.”
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