The new chair of the Board of Trustees is no stranger to Duke.
Richard Wagoner, former chairman and CEO of General Motors Corporation and Trinity ’75, was elected chairman of the Board Saturday. Wagoner will succeed Democratic N.C. state Sen. Dan Blue, Law ’73. The Board also approved a $2.1 billion budget for the 2011-2012 fiscal year, which begins July 1.
Wagoner has strong family ties to the University—his wife Kathy graduated from Duke in 1977, and their sons Trip and Scott are Duke graduates, Trinity ’06 and Pratt ’08, respectively. Their son Matt is a rising senior at Duke. Wagoner has served as vice chair of the Board since 2007 and has been a member since 2001.
Blue said he is confident in Wagoner’s ability to continue carrying out Duke’s mission—including Blue’s major goals of increasing the internationalization of the University and maintaining an interdisciplinary nature in academics.
“[Wagoner] is very conscientious, and he’s been involved with planning with the administration,” Blue said. “He’s a great choice.”
Although both Blue and Wagoner have professional knowledge in the business arena, Wagoner’s experience in the corporate world diverges from Blue’s political roots. Wagoner retired from his position as the CEO of General Motors in 2009.
Wagoner’s business background, though, will not necessarily translate directly to his work as chair, President Richard Brodhead said.
“When Trustees come from business, they do not come to run Duke as a business,” Brodhead said. “When they have been the head of an enterprise, they bring a world of experience, [especially] in issues like risk management, strategic planning and personnel issues.”
Wagoner said serving on the Board for the past decade has given him the experience needed to serve as chair.
“Running the Board is different from running a company,” Wagoner said. “I thought I knew a huge amount about Duke before I started, but [serving on the Board] really showed me how the University works. I have a good understanding of the opportunities and challenges that Duke faces.”
Wagoner’s election continues a recent trend of calling on vice chairs to fill the role. Blue’s predecessor Robert Steel, Trinity ’73, served as vice chair from 2000 to 2005 before becoming chair in 2005. Peter Nicholas, Trinity ’64, was elected chair in 2003 after serving three years as co-vice chair with Steel. Harold Yoh, Pratt ’58, also previously served as vice chair before becoming chair in 2000.
The Board also elected two new vice chairs for the upcoming term—Jack Bovender, retired chairman and CEO of Hospital Corporation of America Healthcare and Trinity ’67, and David Rubenstein, co-founder and managing director of The Carlyle Group and Trinity ’70.
An improved financial state
The Board also approved a $2.1 billion budget, marking a 4.2 percent increase from the $1.93 billion budget for fiscal year 2010-2011. The budget includes operating expenses of $1.4 billion and anticipated expenses of $667 million for research and other specific purposes. The budget for undergraduate financial aid has also been increased to $133 million, up from $108.5 million, to help balance the 4.2 percent increase to undergraduate tuition approved at February’s meeting.
This year’s budget will allow for merit-based raises for faculty and staff for the first time since 2009 and funds for “significant capital projects” and “new program initiatives,” according to a Duke news release.
The University now has more flexibility to pursue projects that had been placed on hold, Brodhead said. Some projects include updating the West Campus Steam Plant and renovating the West Union Building.
“I think our financial state is improving,” Blue said. “We are still pursing the [Duke Administrative Reform Team] initiative because of the discipline that it brings, but… we are also looking to the future. We are going to spend in such a way that we see Duke’s trajectory in an upward form.”
The 2011-2012 budget is balanced, Executive Vice President Tallman Trask wrote in an email Tuesday.
Still, the budget is not at the same level as it was previously before the economic downturn. The budget typically saw a 9 percent increase before the recession.
“[There is] still much to do and we can’t slip back, but for next year we’re OK,” Trask wrote. “[Fiscal year 2012-2013] may be another challenge, depending on what happens in the markets over the next nine to 12 months.”
Duke abroad
The Board also heard an update on Duke’s new campus in China. During its February meeting, the Board discussed Duke Kunshan University’s costs and academic programs, as well as the partnership with Wuhan University.
During Saturday’s meeting, the Business and Finance Committee assessed some of the projections for tuition and fundraising. Blue said the Board is monitoring the progress of DKU “very closely.”
Brodhead said he expects to see faculty members take an even larger role in the planning process, as the University begins to shape DKU’s academic programs during the next few months.
“The Trustees were content with the forward progress on Kunshan,” Brodhead said. “They have been very extensively involved in foreseeing the planning of Kunshan. We have done a deeper dive in preparing for Kunshan than for any [other] venture the University has taken.”
In other business:
The Board also heard a series of presentations on various topics close to home and abroad. Vice President and Director of Athletics Kevin White spoke about the state of intercollegiate athletics. Additionally, Steve Nowicki, dean and vice provost for undergraduate education, and Vice President for Student Affairs Larry Moneta led a discussion on campus culture and student life.
Former Trustee Kimberly Jenkins, senior adviser to the president and provost for innovation and entrepreneurship and Trinity ’76, Graduate School ’77 and ’80, presented on the state of translational research and entrepreneurship at Duke. She discussed building a support network within Duke, initiatives in the region and partnerships with neighboring universities, Wagoner said.
Ranga Krishnan, the dean of the Duke-National University of Singapore Graduate Medical School, also gave a presentation to the Board. The Board’s assessment of Duke-NUS coincides with the school’s first graduating class this summer.
Blue said the Board was pleased with the progress of Duke-NUS and gave it “a very good review.”
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