A matter of trust
THE J. PAUL GETTY TRUST hired a new museum director on Monday, hoping to open a new chapter in the museum's 52-year history.
But it will be tough for the incoming executive, 47-year-old Michael Brand, to make a fresh start as long as allegations of lavish spending and questionable dealings by Getty officials hang like a dark cloud over the hilltop campus. Those reports have not only damaged the Getty's image but also increased the public's skepticism about nonprofit institutions in general.
Because state and federal taxpayers subsidize the trust, it has a duty to use its enormous resources -- an endowment worth $5 billion, $4 billion in other assets and millions of dollars worth of donations and sponsorships -- for the public good, not private gain. But recent reports in The Times about the perks and power conveyed on Barry Munitz, the trust's president and chief executive, have created the perception that Munitz and the board of trustees view the Getty as their plaything.
The Getty has long held an exalted place in the art world, with its diverse collections, incomparable setting and unmatched wealth. But these most recent disclosures show the foundation to be exceptional in an entirely different way. They bring back unpleasant memories of the tales of corporate greed earlier this decade, when it seemed that every scandal could be traced to an "imperial CEO" and his all-too-compliant board.
For Munitz, it seems, no perk was too extravagant (a $72,000 Porsche SUV) or too trivial (umbrellas delivered by express mail when he was on the road). And the foundation's board -- headed, ironically, by John H. Biggs, former chairman of one of the world's largest retirement systems, who is a longtime proponent of tougher oversight and greater accountability in the corporate world -- was entirely too willing to grant his wishes, or at least allow his wishes to be fulfilled.
As is the case with many a corporate scandal, no single decision made by either Munitz or the board may be indefensible. It is the pattern of behavior that is disturbing.
Among the most troubling revelations was the sale of Getty-owned real estate in Brentwood for substantially less than its appraised value to billionaire Eli Broad, a close friend and professional associate of Munitz. Getty documents show Munitz planned the strategy for the negotiation and discussed the property in person with Broad.
