UH won't renew contract of chief financial officer

By Beverly Creamer
Advertiser Education Writer

In an unusual and surprising move, the University of Hawai'i Board of Regents voted yesterday not to renew the contract of J.R.W. "Wick" Sloane, the university's chief financial officer, vice president for administration and the man who oversaw the first bond proposal to finance the new Medical School complex in Kaka'ako.

Wick Sloane is married to UH Foundation president Elizabeth Sloane. Advertiser library photo

Ten days ago Paul Costello, vice president for external affairs and university relations, said he would be leaving Jan. 5 to accept a job at Stanford University School of Medicine. Costello said his departure was based on an opportunity he couldn't pass up.

The action against Sloane was unusual in that the regents, after meeting in private session, emerged publically to say a UH vice president's contract was not being renewed. Though Sloane was not named, he was later notified that he was being terminated. Most personnel decisions of that nature are made in private and are announced a month later at the next scheduled board meeting.

"I've been very critical of practices and issues with the board, and I hope that doesn't have something to do with this," Sloane said after he heard the news.

"I've gotten good reviews," he said. "We've accomplished a lot for the students of Hawai'i."

Chairwoman Patricia Lee said the board had acted on Dobelle's recommendation in not renewing Sloane's contract. She would not elaborate and referred questions to board secretary David Iha who was not available for comment.

However, UH spokeswoman Carolyn Tanaka said Dobelle had not lost confidence in Sloane.

"The Board of Regents made it clear that they would not reappoint Wick next December, leaving me no alternative under the policy" that requires a year's notice of termination for managers, Dobelle said in a statement.

"My evaluation of Wick was that he met evaluation expectations and that I value his integrity and competence."

University of Hawai'i regents voted not to renew the contract of Wick Sloane, vice president for administration and chief financial officer. Advertiser library photo • March 20, 2003

Sloane's contract extends through Dec. 17, 2004 and he will stay on the job until then. He makes $227,000. "We have plenty of work to accomplish in the months ahead, and we're going to keep succeeding," he said.

Dobelle has come under criticism for hiring former associates and paying them high salaries. Gov. Linda Lingle, who appointed half of the 12 board members, has said publically that such salaries send the wrong message "at a time when I'm out talking to the public about the need to be fiscally conservative and to live within our means."

The UH Foundation under Betsy Sloane is about to embark on a new fund-raising campaign to coincide with the university's 100th anniversary year in 2007.

Betsy Sloane worked with Dobelle at Trinity College in Hartford, Conn., as associate vice president for development and introduced Dobelle to her husband, who had founded his own Cambridge-based financial company. Before then, he was chief operating officer for North America at Baring Asset Management, a global fund that manages billions of dollars for institutional clients. He was hired two years ago this month under a three-year contract, nearly six months after Dobelle took office.

The UH foundation's fund raising is up 22.6 percent this year, and projections for the coming year are as high as $30 million. But some regents have said they are frustrated with the foundation about a lack of disclosure.

"We're consistently having our requests for information turned down," said regent Kitty Lagareta, a Lingle appointee.

The board asked general counsel Walter Kirimitsu to examine the regents' contract with the foundation to see what information "we can and cannot have," Lagareta said.

Kirimitsu's role also came under fire yesterday, as regents proposed an amendment to be considered next month that would require him to report to the regents. If the proposal is approved, Kirimitsu would lose his title of vice president in Dobelle's administration.

"It seems you're more inclined to listen to the administration," regent Walter Nunokawa said yesterday. "Your job is to keep us protected and informed."

The regents extensively debated where Kirimitsu's loyalty lies and who he ultimately represents.

"I don't understand how you can serve two masters," said regent Jane Tatibouet.

Kirimitsu said the statute that set up his office stipulates that he provides legal advice for the university. Tatibouet noted that the university and regents are one and the same.

"You're wearing several hats," she said. "That would fly in the face of the statute."

Kirimitsu said he didn't see a conflict and was backed by regent Myron A. Yamasato who noted that Kirimitsu provides legal advice and counsel to a wide range of constituencies on campus.

"The board hires the attorney to provide legal services for the university," Yamasato said, "not for the board."

In the event of a conflict that pits the board against the administration, Kirimitsu said his office would very likely "have to withdraw" under standards set for the legal profession and to avoid a question of loyalty. In that situation, each side would need to hire its own lawyer, he said.

Kirimitsu likened the university situation to that of the city corporation counsel that provides legal services to both the City Council and the mayor's office. With those entities often at odds, the task involves assigning separate staff attorneys to different cases.

That same scenario can be applied to the university, Kirimitsu said. "Everything turns on the ultimate question — are we protecting the regents?" he said.

Reach Beverly Creamer at bcreamer@honoluluadvertiser.com or 525-80013.