Waivers and Ironies
This post will be of special interest to those who enjoy the occasional ironies
that arise in the world of government ethics. According to <a href="http://www.nytimes.com/2010/11/13/nyregion/13black.html" target="”_blank”">an
article in today's New York <i>Times</i></a>, the woman named to be New York
City's new schools chancellor has decided to resign from her positions
on the boards of Coca Cola, IBM, and Hearst Magazines (where she is
chair), at a great financial cost to her. Of these three, only IBM has
contracts with the city.<br>
<br>
What is ironic is that the reason she is doing this is exactly the
opposite of the usual reason high-level officials should resign their
positions with companies. Most high-level officials have spent their
lives in the field, and their corporate positions raise all sorts of
possible, ongoing conflicts. They tend to argue that their expertise outweighs all
the possible conflicts they have.<br>
<br>
The new school chancellor has no background in education. It is her
lack of expertise that is the problem. Why? Because without a
background in education, she needs to get a waiver from the state department of education in
order to accept the position. She wants to make it clear that she is
willing to bend over backwards for the job, even at a serious financial
cost to herself, in order to get that waiver.<br>
<br>
If she chose, the new schools chancellor could have sought a waiver
from the city's Conflicts of Interest Board, and she most likely would
have gotten waivers for the Coca Cola and Hearst positions (although
being Hearst chair would likely be too much of a commitment). But in order
to get the job, she felt it would be better not even to try.<br>
<br>
If only those with expertise were equally willing to bend over
backwards for their government jobs, removing themselves from as many
real conflict situations as they could. I suppose this case shows
the value of an effective, independent waiver system, one that forces government officials to make a case for themselves and their conflicts,
if they want to preserve them, before they can accept an appointment.<br>
<br>
Robert Wechsler<br>
Director of Research-Retired, City Ethics<br>
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