I am not a twitter user but Bill Ackman's account today is explosive but frankly no surprise. Ackman notes:
In light of the affiliated nature of these transactions, in order for MIT to have made these investments in Gorenberg’s wife’s non-profit, the MIT board or a subcommittee designated by the board would have had to approve this investment each year it was made. But why would they have approved this investment for the last five years and I suspect this year as well? The mission of MIT is to advance knowledge and educate students in science, technology, and other areas of scholarship that will best serve the nation and the world in the 21st century. How is an investment in a non-profit that promotes DEI tools to corporations consistent with MIT’s stated mission? Why would MIT fund an increasing amount of money each year to a board member’s wife’s non-profit , let alone the Chairman’s wife’s company, when the organization does not appear to have gained any traction, let alone any other donors over the last five years?
In my years of investing and on Boards the issue of self dealing was always a concern. Thus arms length was the motto of the day. Here we have in my opinion and in my experience a prima facie case of self dealing if the facts are correct.
MIT is truly becoming a collapsing entity. Frankly as I have noted over the years it is most likely the current President's predecessor who may in my opinion bear the fault.
MIT need, actually demands, an independent white knight to ride in and clear out the stables. Any takers?
UPDATE: I have become aware that Ackman has updated the X posting making not that the donation was made via a rather complex mechanism. Yhis tale may not be over yet.
Posts
