多宝游戏下载

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Board Oversight of Workplace Culture

Earlier today, the 多宝游戏下载 Board voted on a resolution I proposed to establish an independent Board Committee to oversee the 多宝游戏下载鈥檚 response1 to allegations of sexual harassment, discrimination, and other interpersonal misconduct.2 The resolution would have ensured that management and oversight of the agency鈥檚 cultural transformation is independent of the Chairman, but unfortunately the proposal was voted down.3

It has been more than four months since an independent third-party review conducted by Cleary Gottlieb Steen & Hamilton LLP (鈥淐leary Report鈥) found that 鈥渇or far too many employees and for far too long, the 多宝游戏下载 has failed to provide a workplace safe from sexual harassment, discrimination, and other interpersonal misconduct.鈥4 The Cleary Report included a section regarding allegations of misconduct against the Chairman spanning many years, and stated that 鈥淐hairman Gruenberg鈥檚 reputation raises questions about the credibility of the leadership鈥檚 response to the crisis and the 鈥榤oral authority鈥 to lead a cultural transformation.鈥5 Two weeks after the Cleary Report was released, Chairman Gruenberg announced his intent to resign upon the confirmation of his successor.6 Four months later, Chairman Gruenberg continues to manage and oversee the day-to-day operations of the cultural transformation. 

At this point, it is time for the 多宝游戏下载 Board to step in and establish a Board Committee, independent from the Chairman, to oversee our response to the workplace culture challenges we continue to face.  If this were a private sector company, there is no way a CEO who announced his or her intent to resign for reasons directly related to the company鈥檚 workforce culture issues would be permitted to continue to manage and oversee the company鈥檚 response to those issues for months on end.  We should hold ourselves to the same standard. 

The Board also voted on a 鈥渃ounterproposal鈥 offered by Director Chopra at the direction of the Chairman7 that would 鈥渞equest鈥 that the Transformation Monitor assess the Board鈥檚 role overseeing implementation of the Action Plan.  This does nothing to address the issue described above 鈥 the issue is the day-to-day management by the Chairman, not the higher level oversight by the Board.  The 鈥渃ounterproposal鈥 is a vague, open-ended,8 and potentially costly9 attempt to distract from the actual issue.

1See Federal Deposit Insurance Corporation, Action Plan for a Safe, Fair and Inclusive Work Environment (last updated September 12, 2024).
2See Report for the Special Committee of the Board of Directors of the Federal Deposit Insurance Corporation (April 2024) (鈥淐leary Report鈥).
3The Chairman also denied my repeated requests to consider this resolution during the public portion of our Board meeting.
4Cleary Report, supra note 2, at 1.
5Id. at 96.
6Federal Deposit Insurance Corporation, Press Release, Statement by 多宝游戏下载 Chairman Martin J. Gruenberg (May 20, 2024).
7Note that the 多宝游戏下载 bylaws require 10 days鈥 notice for a Board member other than the Chairman to introduce a measure at a Board meeting.  In this case, the Board received approximately 12 丑辞耻谤蝉鈥 notice.  It was confirmed that this item was offered at the direction of the Chairman.
8In its entirety, the Resolution requires the Board to 鈥渞equest that the Transformation Monitor independently assess the Board鈥檚 role in overseeing implementation of the Action Plan, and recommend any policies, procedures, or actions the Board should consider to ensure effective and credible execution of the Action Plan.鈥
9We are billed by the hour. 

Last Updated: September 17, 2024