MINNEAPOLIS –The president of the University of Minnesota, Joan Gabel, denied an ethics complaint that she would be serving two masters and, also, although it’s nit an ethics issue, being paid handsomely to do so. Gabel called the complaint misleading. She noted that the UM Board of Regents had approved her taking a second job as a member of the board of directors of Securian Financial. The ethics rub, say critics, is that Securian, an insurance carrier, bills the university millions or dollars a year for employee life insurance. IN shoort: Gabel would have a role, say critics, in both setting premiums and paying for them. Gabel promised, however, to recuse herself from decisions on contracts between the university and Securian. The institutional and personal sums involved are staggering:
> University of Minnesota annual budget: $4.2 billion.
> Securian assets: $1.2 trillion.
.> Securian’s annual billing to university: $4.6 million.
> Gabel’s UM salary: $800,000.
> Gabel’s Securian compensation: $130,000.
The Securian appointment was approved by UM regents in December. The vote was 9-3.
Gabel profile
Before becoming University of Minnesota president, Gabel was academic vice president at the University of South Carolina. Previously she held business school leadership roles at University of Missouri, Florida State and Georgia State. At Florida State she chaired the Department of Risk Management/Insurance.
Gabel. During her three years at UM, she has served on boards of the Minnesota Business Partnership, the Minneapolis Saint Paul Regional Economic Development Partnership, and the Council on Competitiveness.