RE: BOR Policy 760 – Service on Outside Governing Boards

EFFECTIVE DATE: December 12, 2012

Board of Regents Policy 760 regulates the service of upper-level administrative employees of the Montana University System on outside governing boards, with or without compensation. The policy requires each covered employee to provide a list to his or her supervisor of any service on governing or policy-making boards, along with the compensation received within the past 12 months for sitting on those boards. Having reviewed the reports, I believe that some clarification as to what must be reported and when would streamline this process.

The following interpretative rules will govern what must be reported:

  1. The reporting requirement is only for true governing boards, of for-profit or non-profit organizations, excluding unpaid service on common local non-profit charities and chambers of commerce. Report all service on governing boards of for-profit and non-profit organizations, excluding service on common non-profit charity boards and local chamber of commerce boards (unless such service is compensated).
  2.  “Governing board” generally means a board of directors of a for-profit or non-profit corporation.
  3. Advisory boards, councils, and committees are not covered by this policy, nor is it necessary to report service on campus-related entities, like foundations, alumni associations, and professional associations.
  4. The policy was not meant to require reporting on unpaid service on governing boards of local charities which are unrelated to education or business, like local chapters of United Way, library boards or Big Brothers and Big Sisters. Likewise, unpaid service on the boards of scholarship committees need not be reported.
  5. The reports should include both for-profit and non-profit boards and annual compensation. The policy requires prior approval only with regard to for-profit board service.
  6. Your report should include only service NOT previous reported. Once an employee’s service on an outside governing board, it is not necessary to report it again until there is a change in that service.

Clayton T. Christian
Commissioner of Higher Education

Commissioner's Directives are official interpretations and guidance issued by the Commissioner of Higher Education; they remain in effect as system directives until withdrawn or revised by the Commissioner or superseded by action of the Board of Regents.