MEMORANDUM

September 22, 2006

The Board of Trustees met on campus Thursday, September 14, and Friday, September 15, as the first meeting of the 2006-07 academic year. In addition to having an extremely worthwhile orientation for new and returning members on September 14, the board met on Friday and adopted a resolution that reflects the very best of American University's values.

At the conclusion of a considered discussion that involved trustees, university officers and campus representatives, the board adopted a resolution regarding investment in Sudan that states that American University will do four things:

1. Not invest directly in companies doing business in the oil and gas sector in Sudan;
2. Communicate its decision to its investment managers and advisors, urging them to end any investment in companies doing business in the oil and gas sectors in Sudan;
3. Request that its investment managers and advisors inform the university within the calendar year (2006) of any companies in its managed funds doing business in the oil and gas sector in Sudan;
4. Convey to the U.S. higher education community American University's actions with respect to divestment in Sudan and urge them to do the same.

In addition to the resolution, Interim Provost Ivy Broder will help identify faculty members who might have particular expertise on Darfur; and Interim President Neil Kerwin will work with campus to create a project team on social responsibility to provide a campus-wide means to keep abreast of human rights and other issues and appropriate institutional responses. I commend everyone for the thoughtful approach with which we held the discussion, and regard it as an indication of the new vigor with which the board and campus can engage to address university issues.

In other board actions, Mary E. Kennard, vice president and general counsel, was appointed secretary of the board, an action resulting from the comprehensive board review on governance and the recommendations adopted this past spring. Mary will work with Mark Huey as part of the office of the secretary of the board in coordinating board business.

The Presidential Search Committee will hold its first meeting on September 25 to formally begin this important endeavor. The complete 15-member committee has now been named, and includes (in alphabetical order):

• Gary M. Abramson*, Chairman, Board of Trustees, and Chairman of the Search Committee;
• Patricia Aufderheide, Professor, School of Communication, faculty member;
• Robin Beads, Associate Director, Institutional Research and Assessment, staff member;
• Stephanie M. Bennett-Smith, President Emerita, Centenary College, trustee member;
• Jack C. Cassell*, President and Chief Executive Officer, Visual Aids Electronics and Conference Systems, Inc., trustee member;
• Gisela B. Huberman*, President, GBH Radio, Inc., trustee member;
• Alan Kraut, Professor, College of Arts & Sciences, faculty member;
• William M. LeoGrande, Dean, School of Public Affairs, deans' member;
• Robyn Rafferty Mathias*, Principal (retired), Rolling Terrace Elementary School, trustee member;
• Mary Mintz, Senior Reference Librarian, University Library, faculty member;
• Wade Murphy, Executive Director, Graduate Leadership Council, graduate student member;
• Ashley Mushnick, President, Student Government, undergraduate student member;
• Matthew S. Pittinsky*, Chairman and co-founder, Blackboard Inc., trustee member;
• Rev. John R. Schol, Bishop, Baltimore-Washington Conference, United Methodist Church, trustee member; and
• Jeffrey A. Sine*, Vice Chairman/Global Head, Telecommunications and Technology, UBS Securities, trustee member.

Six committee members are alumni members (denoted by an asterisk*). The committee will provide an update after its first meeting.

Other board business included updates from Interim President Kerwin and the university administrative and academic leadership. This included reports and discussion on a number of topics, including the university's Web initiative; the transition management plan for AU athletics; the status of ABTI-American University of Nigeria in the wake of potential political unrest in that country; and other items.

The board also is working with university communications to create a free standing Board of Trustees Web site, which should be operational by the end of September. This will serve as a resource for information, news, and updates from the AU board, and we will post all pertinent public documents on this site—including those described in this memo. We also will create a site dedicated to the President's search.

The next full board meetings will be Thursday, November 2, and Friday, November 3.