AUSTIN, Texas — The University of Texas board of regents approved changes that increase its oversight of the $16.2 billion University of Texas Investment Co.
In doing so, the regents might have paved the way for the company's long-neglected new compensation plan to be approved next month.
Among the changes, the board:
• Instituted an "investment oversight fee." This fee —estimated to cost the endowment funds managed by UTIMCO around $500,000 a year — will pay for the added oversight, including hiring an outside investment consultant and outside legal counsel to the board as well as creating a new position, director of investment oversight.
• Revised the investment management services agreement between the board of regents and UTIMCO. The agreements now will include requiring an annual UTIMCO review of investment policies by June 1; requiring UTIMCO to provide training and education to UTIMCO directors; requiring UTIMCO to submit a budget to the regents within the UT System's budget timeframe; and allowing regents "greater flexibility to modify a proposed budget item."
• Amended the UTIMCO bylaws to require, among other things, an annual joint meeting with regents and the UTIMCO board, that the UTIMCO president consult with the chairman and vice chairman on board meetings, and posting of "significant" documents policies and meeting minutes on the UTIMCO website.
• Amended the regents' rules and regulations relating to UTIMCO. These changes will allow the regents to review the performance of the UTIMCO board and to change the way the outside directors are chosen.
The changes follow eight months of wrangling.