vertical rule Case Western Reserve regularly makes news for its endeavors in research, teaching, and scholarship. Last summer and fall, however, CWRU was thrust into the news in an unwelcome way. In June, the Cleveland Plain Dealer reported that University benefactor Peter B. Lewis had suspended all charitable giving to Cleveland institutions as a protest against what he characterized as CWRU’s poor governance. More media attention followed, including, on November 14, a front-page story in the New York Times titled, “School Learns Cost of a Gift-Giver’s Anger.”

The Peter B. Lewis Boycott
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Mr. Lewis, the chairman of the automobile insurer Progressive Corporation, is among the country’s most generous philanthropists. Included in his giving has been tens of millions of dollars to institutions in his hometown of Cleveland. One of those institutions is Case Western Reserve, which generations of his family have attended. The Weatherhead School of Management’s new home, designed by renowned architect Frank Gehry and dedicated last October, is named for Mr. Lewis, who contributed $36.9 million toward its total cost of $61.7 million.

It’s around the Peter B. Lewis Building, though, that the conflict arose. Mr. Lewis contends that CWRU’s Board of Trustees mismanaged the project, resulting in large cost increases in the building. Further, he asserts, such missteps are part of a pattern that is compromising the University’s quality and reputation. His citywide boycott, which remains in effect, would continue until the entire CWRU board stepped down or, as Mr. Lewis told the Times, a similar “revolutionary change” occurred. His boycott did not include his commitment to the Weatherhead School building; in December, Mr. Lewis fulfilled the final part of his $36.9-million pledge.

In the month before the Times story ran, CWRU’s board approved sweeping governance changes, which grew out of an intensive review that had begun in 2001. The board also named four new members. (See “Board in the Spotlight.”)

After the Times story appeared, CWRU President Edward Hundert addressed the conflict in a letter to the paper, which published an abbreviated version of it. He also sent the letter to all faculty, staff, and students, and the alumni office transmitted it to all graduates with known e-mail addresses. President Hundert sent a separate letter to all New York City alumni.

Below are excerpts from President Hundert’s message:
  • “Peter Lewis is an extraordinary supporter of Case Western Reserve University. Since starting as president of the University three months ago, I have enthusiastically embraced his call for change and improvement.”
  • “Peter and everyone at the University agree that the $61.7-million Frank Gehry-designed building is far better than the originally proposed $25-million rectangular box, not only because it is now the most innovative home for a business school in the world, but also because it prompts all of us to reexamine our educational philosophies, to ‘think outside the lines.’”
  • “While Peter called for the resignation of the entire board to make this change immediate, the board’s governance committee established a more measured process that tries to maintain some continuity, with new term limits leading to a turnover of approximately half the board over the next two years. The intention to appoint national leaders was made clear with the first four new trustees.”
  • “While he has been very concerned about board governance, it is important to set the record straight that Peter Lewis is one of the most committed philanthropists in the world.…Our goal is to capitalize on the enormous gift that he has given this institution, and to transform this university into one of the finest and most forward-thinking and creative institutions of the twenty-first century.” end

Ken Kesegich

For President Hundert’s complete letter to the New York Times, visit www.cwru.edu/menu/president/nytimes.htm.

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