XX.E.4   Faculty Ownership or Management of Private Enterprise

Because of the potential for conflict of interest or commitment, in many circumstances it would not be appropriate for a faculty member to manage or own a substantial portion of a private enterprise. However, in certain circumstances, the University may allow faculty ownership or management of private companies under conditions that are intended to minimize the likelihood of a conflict of interest or commitment. The following process must therefore be observed:

a. If a faculty member has, or plans to assume ownership or managerial responsibilities of a private enterprise, that individual is required to disclose the proposed involvement to the Provost and, for faculty in professional schools, to the cognizant dean, who will review the proposal to ensure that such activities do not interfere with the faculty member's obligations to the University.

If the Provost or dean determines that a faculty member's involvement with an enterprise entails, or is likely to entail, a conflict of commitment, then the Provost or dean will consult with the faculty member in order to seek ways to eliminate or manage the conflict.

The faculty member may request a one-year, half-time appointment with appropriate reduction in obligations to and from the University to devote the other time to the non-academic commitment. Alternatively, the individual may request leave without pay for up to one year. Such requests will be acted on by the Provost after an assessment of institutional needs.

At the end of any approved leave or period of reduced responsibility, the faculty member may return to full-time status. If the faculty member wishes to continue to devote substantial time to the commercial endeavor, the individual will normally be expected to resign from the University. Subsequent reappointment to full-time status requires application and approval through the University's ordinary faculty appointment procedures. The faculty member may also request conversion to part-time adjunct status, but subsequent reappointment would similarly involve the usual University appointment procedures.

b. After the Provost or cognizant dean has reviewed the proposed involvement and resolved any conflict of commitment, the Provost, or dean submits the proposal to the Committee for review and approval.

If the Committee determines that a faculty member's disclosed involvement with an enterprise entails, or is likely to entail, a conflict of interest, the Committee will consult with the faculty member in order to seek ways to eliminate or manage the conflict.

c. When an enterprise has been established to commercialize the results of a faculty member's professional endeavors, the proposal must also be reviewed and approved by the Office of Cooperative Research. Additional conflict management techniques may be implemented as described in the Conflict of Interest Principles Applicable to Faculty Relationships with Startup Companies codified in Appendix III of the University Policy on Conflict of Interest.

Because of the potential for conflict of interest or commitment, in many circumstances it would not be appropriate for a faculty member to manage or own a substantial portion of a private enterprise. However, in certain circumstances, the University may allow faculty ownership or management of private companies under conditions that are intended to minimize the likelihood of a conflict of interest or commitment. The following process must therefore be observed:

a. If a faculty member has, or plans to assume ownership or managerial responsibilities of a private enterprise, that individual is required to disclose the proposed involvement to the Provost and, for faculty in professional schools, to the cognizant dean, who will review the proposal to ensure that such activities do not interfere with the faculty member's obligations to the University.

If the Provost or dean determines that a faculty member's involvement with an enterprise entails, or is likely to entail, a conflict of commitment, then the Provost or dean will consult with the faculty member in order to seek ways to eliminate or manage the conflict.

The faculty member may request a one-year, half-time appointment with appropriate reduction in obligations to and from the University to devote the other time to the non-academic commitment. Alternatively, the individual may request leave without pay for up to one year. Such requests will be acted on by the Provost after an assessment of institutional needs.

At the end of any approved leave or period of reduced responsibility, the faculty member may return to full-time status. If the faculty member wishes to continue to devote substantial time to the commercial endeavor, the individual will normally be expected to resign from the University. Subsequent reappointment to full-time status requires application and approval through the University's ordinary faculty appointment procedures. The faculty member may also request conversion to part-time adjunct status, but subsequent reappointment would similarly involve the usual University appointment procedures.

b. After the Provost or cognizant dean has reviewed the proposed involvement and resolved any conflict of commitment, the Provost, or dean submits the proposal to the Committee for review and approval.

If the Committee determines that a faculty member's disclosed involvement with an enterprise entails, or is likely to entail, a conflict of interest, the Committee will consult with the faculty member in order to seek ways to eliminate or manage the conflict.

c. When an enterprise has been established to commercialize the results of a faculty member's professional endeavors, the proposal must also be reviewed and approved by the Office of Cooperative Research. Additional conflict management techniques may be implemented as described in the Conflict of Interest Principles Applicable to Faculty Relationships with Startup Companies codified in Appendix III of the University Policy on Conflict of Interest.