Kent State to pay at least $179K for presidential search, contract details ‘trade secrets’ claim from search firm

Laina Yost
December 13, 2018

Kent State will pay Russell Reynolds Associates, the executive search firm chosen to find the university’s next president, a $170,000 retainer for its services, plus a $9,000 administrative fee.

The total cost for the search, laid out in a contract between the two parties, will probably be more, and will equal one-third of the new president’s first-year total cash compensation, including their salary and any other “monetary inducements” accepted as part of the hiring negotiations. The $179,000 paid at the beginning of the search to Russell Reynolds will be credited against the total fee. (See the full contract below this story.)

The university’s search for President Beverly Warren in 2013 cost Kent State more than $250,000.

The contract also states Russell Reynolds considers its “processes, procedures, database, portal, candidate and search-related documentation and personal data, and all internal electronic and written correspondence to be confidential, proprietary information, and trade secrets.”

Among other terms and conditions, the university agreed to provide the firm an opportunity to deny any public records requests regarding the presidential search. If the firm claims trade secrets, the contract says Russell Reynolds will bear the burden of proving it.

Mark Polatajko, senior vice president of finance and administration, signed the contract on Dec. 5, the day the Board of Trustees selected Russell Reynolds. A public records request was made for the document on Dec. 6; a copy of the contract was received by KentWired Thursday.

John C. Greiner, an attorney with Graydon Head & Ritchey LLP in Cincinnati who specializes in media law, said candidate names and resumes for a public position should be public record and wouldn’t qualify as trade secrets.

“The concern, obviously, is that the contractor can identify whatever it wants as a trade secret,” he said. “Just because the contractor says it’s a trade secret doesn’t make it a trade secret. I’m concerned they may overuse the designation.”

Russell Reynolds’ proposal submitted to Kent State via the referral for proposal process said it would provide candidate resumes and information for the search committee through a web portal. According to the contract, documents handled via the portal wouldn’t be considered public records by the firm.

“The law in Ohio basically is that resumes of candidates for public positions are public record,” Greiner said. “That’s the law. If you submit a resume for a public position, there is no reasonable basis for you to assume that that is a secret.”

The last presidential search was criticized for a lack of transparency and included accusations that Kent State did not follow public records law. No finalists were brought to campus for public vetting.

Russell Reynolds recommended a closed search process to the committee in its proposal.

When asked about the legality of the records sections of the contract, Eric Mansfield, executive director of media relations at Kent State, referred to Board chair Ralph Della Ratta’s comments in a press release that said the university “will continue to abide by all applicable laws while seeking outstanding candidates to serve as our university’s next president.”

KentWired also obtained copies of “codes of conduct” signed by each search committee member, who pledged that only the chair of the committee, Trustee Shawn Riley, is authorized to speak to the media. (See the codes of conduct posted below this story.)

The 16 members also agreed not to reveal the names of candidates or any information about them before or after the search. “I understand,” the document states, “this effort is necessary to attract excellent candidates, to avoid putting their current positions in jeopardy, and to maintain my institution’s professional image.”

Pamela Grimm, the chair of Faculty Senate, inserted a handwritten note in this section and changed it to “I understand this effort is perceived as necessary…”

Multiple email requests to members of the committee to speak about the presidential search were referred to Kent State’s communications and marketing office. No members of the Board of Trustees would speak about the search after its Dec. 5 meeting.

A request for comment from Jett Pihakis, who is leading the search for Russell Reynolds, was not immediately returned.

Mansfield said confidentiality agreements are normal procedures in any university presidential search.

Russell Reynolds will provide a monthly invoice to the university that lists expenses, which could include meals and airfare for candidates.

According to the contract, Kent State will not approve any reimbursements that don’t follow university policy or state law. The university’s last search raised questions over how and for whom money was spent.

The search firm will provide reference checks for candidates and verify their educational histories. Any additional background checks must be provided by the university.

The search committee held two public forums on Friday. One was on the Kent campus from noon to 1 p.m. on the Student Center Ballroom Balcony. The other was from 9-10 a.m. in the Main Hall Conference Room 1 on the Stark Campus.

A search-related website at kent.edu/presidentialsearch is available for community members to provide feedback or communicate with the committee.

Laina Yost is the enterprise editor. Contact her at [email protected].

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Kent State Presidential Search Contract with Russell Reynolds Associates (Text)

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