The official minutes of the University of South Carolina Board of Trustees are maintained by the Secretary of the Board. Certified copies of minutes may be requested by contacting the Board of Trustees’ Office. Electronic or other copies of original minutes are not official Board of Trustees' documents.

The University of South Carolina Board of Trustees met on Friday, March 27, 1998, at 9:30 a.m. in Room 801-I of the H. William Close Business Administration Building.

Board members present were: Mr. William C. Hubbard, Board Chairman; Mr. Mack I. Whittle, Jr., Board Vice Chairman; Dr. C. Edward Floyd, Chairman Emeritus; Mr. Donald A. Bailey; Mr. James Bradley; Mr. Mark W. Buyck, Jr.; Mr. Samuel R. Foster, II; Mr. Toney J. Lister; Mr. Miles Loadholt; Mr. Robert N. McLellan; Mr. J. DuPre Miller; Mr. Michael J. Mungo; Mr. Robert C. Osborne, Jr.; Mr. M. Wayne Staton; and Mr. Othniel H. Wienges, Jr. Mr. Herbert C. Adams; Mr. Arthur S. Bahnmuller; Mr. William M. Gregg, II; Mrs. Helen C. Harvey; and Dr. Barbara S. Nielsen were absent. Faculty representative Eldon D. Wedlock, Jr., and student representative Kimberly Dickerson were also present.

Others present were: President John M. Palms; Secretary Thomas L. Stepp; Executive Vice President for Academic Affairs and Provost Jerome D. Odom; Vice President for Business and Finance John L. Finan; Vice President for Development Charles D. Phlegar; Vice President for Student and Alumni Affairs Dennis A. Pruitt; Vice President for Human Resources Jane M. Jameson; General Counsel Walter (Terry) H. Parham; Dean, College of Business Administration, David L. Shrock; Executive Director, University Foundations, Susie H. VanHuss; Senior Director for Planned Giving and Legal Liaison for Foundations, Development Office, Harriette D. Wunder; Director of Development, J. Cantey Heath, Jr.; Chief Executive Assistant to the President J. Lyles Glenn; Director of Presidential Communications and Research Pete F. Mackey; Director of Public Affairs Russell McKinney; and representative from Media Relations Jason Snyder.

Chairman Hubbard called the meeting to order and welcomed Kim Dickerson, the new Student Body President, to her first Board meeting. Chairman Hubbard then welcomed the others in attendance, inviting them to introduce themselves. Mr. Snyder reported that no members of the media were present.

Chairman Hubbard reported that the agenda had been posted and the press had been notified as required by the Freedom of Information Act; the agenda and supporting materials had been circulated to the members, and a quorum was present to conduct business.

Chairman Hubbard stated that there was a contractual matter with respect to receipt of legal advice regarding a naming opportunity that was appropriate for Executive Session and called for a motion. Mr. Bailey moved to enter Executive Session, and Dr. Floyd seconded the motion. The vote was taken, and the motion carried. Everyone present in the room was invited to remain for Executive Session.

Executive Session

Return to Open Session

Mr. Hubbard gave the following outline of the $25 million gift commitment:

The Richard E. Rainwater Charitable Remainder Unitrust No. 1 has named the University of South Carolina Educational Foundation as an irrevocable beneficiary of $25 million of its assets. Each year, beginning January 1, 1998, and over four additional years, a designated asset account of the Unitrust will be credited with $5 million to the USC Educational Foundation. In addition, the Unitrust is empowered to make gifts from the earnings of the Designated Assets on an annual basis, to the USC Educational Foundation for the use of The School of Business, of 5% of the value of the Designated Assets or $1.25 million, whichever is greater.

The Richard E. Rainwater Charitable Remainder Unitrust No. 1 recorded assets as of 1/1/98 of $130 million. Richard E. Rainwater is the Settlor and Trustee of the Unitrust.

The assets will be managed in the Unitrust until the death of Mr. Rainwater when the value of the University of South Carolina Educational Foundation's irrevocable share, at its then capital value, will be transferred free of trust to the Foundation.

Initially the funds are being invested by the Trustee in HBK Funds, of which the Rainwater Family and another prominent University, have substantial investments. HBK has current assets in excess of $1 billion. HBK has a historical return since its inception in 1991 of 24% annually.

In consideration of the gift commitment, The School of Business will be named The Darla Moore School of Business, effective immediately upon the approval of the Board of Trustees, so long as the terms and conditions of the Gift Agreement are adhered to in all respects.

Chairman Hubbard then recognized Mr. Mungo. Mr. Mungo made the following comments:

I want to comment about Mr. Jim Bradley. I think it appropriate that Mr. Bradley make the motion on the acceptance of this gift. I had the distinct honor, almost 30 years ago, of serving with Mr. Bradley when he was chairman of the business school foundation, which was the genesis and the generator of what we now have as we get ready to step to this next level. He did such an outstanding job in raising money and getting this business school started that I had the honor, as chairman of one of the committees, to recommend him for an honorary degree from the University which was awarded about 25 years ago. And I believe, on the occasion of this stepping up to the new "major league" level, that it would be appropriate that Mr. Bradley make the motion.

Mr. Hubbard called on Mr. Bradley for a motion. Mr. Bradley moved that the gift, as summarized by Chairman Hubbard, be accepted by the Board and that the College of Business Administration be named "The Darla Moore School of Business." Mr. Staton seconded the motion.

Dr. Palms fully supported the recommendation; it was appropriate for the gift that was given and appropriate for the person giving the gift because of both her personal qualities and her professional attainment. The University was doubly blessed that it came from a woman. It would be inspiring to young women who were thinking of business as a career to know that it is possible to rise from the State of South Carolina to be successful in the national world of business.

Dr. Palms thanked the Board for helping to establish the climate that made this gift possible. The gift was a testament that the institution's vision was ambitious and very realistic. This was a vote of confidence for the School, and Dr. Palms said he was appreciative of those who established the groundwork in the College over many years. He looked forward to building the School, through this gift, into one of the leading business schools in the nation.

Mr. Mungo said he was very proud of the progress that the business school and the University as a whole had made. Having served on the Board for many years, Mr. Mungo said he had never seen a better administration or board of directors, and he was very proud to serve on it.

Mr. Hubbard recognized the accomplishments and personal attributes of Ms. Darla Moore. She is a loyal daughter of the Pee Dee, of South Carolina, and the South. She is an inspired businesswoman and a role model of accomplishment. She has distinguished herself for her integrity, energy, intelligence, and personal values. She has distinguished herself for her accomplishments in the world of business--in finance, banking, management, and investment strategy. She is one of Carolina's most distinguished alumni. He expressed his appreciation for this historic recognition of the potential of her alma mater.

Mr. Hubbard then commended Dr. Palms, Mr. Phlegar, and all members of the administration for their efforts in putting this proposal together. He said the Board was very enthusiastic about the potential that this gift brought to the University and how it would stimulate and be a catalyst for great progress for the business school, specifically, and the University, generally. This should be a catalyst for additional substantial gifts to this University.

Mr. Hubbard called for the vote on the motion. The vote was unanimous in favor of accepting the gift as outlined and the naming of the School of Business "The Darla Moore School of Business."

There being no further business to come before the Board, Chairman Hubbard declared the meeting adjourned at 10:10 a.m. He invited all participants to the naming ceremonies at 10:30 a.m. in front of the H. William Close Building, College Street Plaza.

Respectfully submitted,

Thomas L. Stepp

Secretary