Dear Madam Speaker and Leader Reid:
I am writing to you regarding the Smithsonian Institution and its Board of Regents. I recently wrote to the Board of Regents, highlighting serious problems regarding the compensation of the Secretary of the Smithsonian and reimbursement for his expenditures that was exposed by the Inspector General.
The problems at the Smithsonian of private planes, first class travel, and a $193,000 housing allowance to live in a house you own, read more like what we expect from out-of-control CEOs in the private sector, not a public charity established by Congress that receives hundreds of millions of federal dollars.
In the last election, there was much time and energy spent decrying salaries and perks of CEOs and boards that were only too happy to rubber-stamp executive compensation. Thus, I am all the more concerned that by statute it is members of Congress who make up a significant part of the Board of Regents. The majority of those congressional Board of Regents members are effectively appointed by the Speaker of the House and Senate Majority Leader.
The new Congress has a real chance to show that its promises are not empty words when it comes to jaw-dropping executive compensation and perks. The Smithsonian is the rare example of Members of Congress sitting on the board of a major organization - Congress is involved in running this train. I encourage you to discuss with the Members of Congress you have named to the Board of Regents of ways business as usual can be changed at the Smithsonian’s executive suites. I believe this is a real opportunity for Congress to show leadership in the area of executive compensation and send the right signals.
Thank you for your time and courtesy in considering this matter.
Cordially yours,
Charles E. Grassley
Ranking Member
cc: Chairman Baucus
Feb. 26, 2007
The Honorable Richard B. Cheney
The Vice President of the United States
The White House
Washington, D.C.
Dear Mr. Vice President:
I am writing to you regarding the Smithsonian Institution and the Board of Regents. I recently wrote to the Board of Regents highlighting serious problems regarding the compensation of the Secretary of the Smithsonian and reimbursement for expenditures exposed by the Inspector General.
The problems at the Smithsonian -- private planes, first class travel, and a $193,000 housing allowance to live in a house you own -- read more like what we expect from out-of-control CEOs in the private sector not a public charity, established by Congress that receives hundreds of millions of federal dollars.
The President has been a leader in the area of charities, particularly through the faith-based initiative. I have been proud to work with the President and you to see important incentives that encourage charitable giving included in legislation signed by the President last year. There is no question that the President’s leadership has brought real benefits to the charitable sector.
However, I have found in my oversight that there is a very real problem of governance in the charitable sector. Thus, it is vital to not only encourage charitable giving, but also ensure that charities are spending the money they receive effectively and appropriately. I applaud the fact that the Internal Revenue Service has recently put forward for public discussion best practices for charities and charitable governance.
By statute, the Vice President sits on the Board of Regents at the Smithsonian. I recognize that your duties for Vice President are vitally important. However, protecting our nation’s treasures, while a very different job, is also important. I encourage you in your role to ensure that the administration sends a clear signal that serving on the board of a charity is an important and serious undertaking. I ask that you and your staff review the Smithsonian in general, and the payments it makes for executive compensation and perks in particular, to see that the Smithsonian conforms with the best practices in the nonprofit sector. Such leadership will do much to advance the President’s goals of a vibrant and effective charitable community.
Thank you for your time and courtesy on this important matter.
Cordially yours,
Charles E. Grassley
Ranking Member
cc: Chairman Baucus
