MEMORANDUM

To: Board of Trustees

From: David McLaughlin, Provost Robert Berne, Exec. Vice President for Health Martin Dorph, Exec. Vice President for Finance & IT Alison Leary, Exec. Vice President for Operations Dick Foley, Vice Chancellor for Strategic Planning Diane Yu, Deputy President Michael Alfano, Sr. Presidential Fellow Katherine Fleming, Deputy Provost Linda Mills, Vice Chancellor for Global Programs and University Life Richard Baum, Chief of Staff Bonnie Brier, General Counsel Debra LaMorte, Sr. Vice President for University Development and Alumni Relations Lynne Brown, Sr. Vice President for University Relations and Public Affairs Re: Facts, Accuracy, and Context in Response to Recent Charges

Date: April 4, 2013 ________________________________________________________________ As the members of the Board are aware, there has been an escalation in the attacks by some University faculty and others who oppose the Universitys plans. Regrettably, these attacks have become increasingly intemperate in tone and now include inappropriate personal accusations. We are providing this memorandum because it is critically important for the members of the Board to know the facts, many of which those making the attacks choose to ignore. This memorandum reviews each of the issues that have been raised or re-raised in the past week or so. In light of the escalating volume and intensity of the attacks, we are sending this memorandum by email to the Board and to the other members of the University community. The memorandum provides information on the following areas: Faculty Engagement recounts historic and recent efforts to improve faculty involvement in University decision making as preview to the efforts to be undertaken by the Trustees committee in the coming weeks. Space Needs and Planning recounts the space planning efforts that led to City approval of NYUs plans, and the ongoing work of the faculty-led University Space Priorities Working Group. Compensation and Loans provides information and context in response to recent attacks on compensation and housing provided to NYU employees as part of our efforts to recruit talented faculty and senior leadership.

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TischAsia provides background and accurate information about the decision to close TischAsia. NYU Florence provides background and corrects false claims about NYUs commitment to arts programs at NYU Florence. NYU London provides factual information and corrects the record on NYUs switch to new student housing facilities for the London site. NYU Shanghai provides accurate information to counter incorrect claims regarding the NYU Shanghai admissions process. NYU Abu Dhabi provides factual information on our campus and operations to counter repeated accusations against NYU Abu Dhabi, including, regrettably, false innuendo directed at members of the Sexton family.

Faculty Engagement The Board, the President, and members of the University leadership have for many years actively sought faculty engagement in the shaping of University initiatives and strategy. As the Board begins a formal process to solicit views of the faculty related to faculty engagement, it is important to note the different forms that currently exist. In addition to school-based processes, where many of the ongoing academic decisions are made with intensive faculty involvement, there are formal mechanisms at the University level ranging from the (largely elected) University Senate, of which the (largely elected) Faculty Senators Council is a constituent part, to the Provosts appointed Committee on Academic Priorities. A resolution on shared governance agreed upon by the Faculty Senators Council and the University administration in fall 2012 is an example of the engagement that occurs at this level. More recently there have been committees composed principally of faculty appointed in the areas of space, the Global Network University, and technology. In addition, faculty views are being sought on the recommended University position vis--vis the graduate student union and the forthcoming National Labor Relations Board decision. In December, John Sexton wrote to the University community summarizing his views on faculty engagement; that message is available here. The Board committee being established to meet with stakeholders will give you an opportunity to hear faculty assessments of these engagement vehicles and to discuss further enhancements, knowing that they will be built on a strong existing base. Space Needs and Plans The Board has reviewed and approved the space plans for NYU, known as 2031, and is well aware of the nature of faculty opposition. Despite extensive outreach and opportunities for community input, the sharpest faculty concerns emerged while the city approvals process with its fixed timetable was well underway. The City Council overwhelmingly approved of the plan; however, it was apparent that further campus-wide review would be beneficial. A space priorities working group was appointed in October 2012 composed of students, administrators,

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and (primarily) faculty from across the University to make recommendations on how to utilize the space envelope delineated by the approved ULURP process. The space working group has taken its responsibilities very seriously and invested a great deal of time and effort in the task. The working group has requested an enormous amount of information from the University, and the administration has complied to the greatest extent practically possible. Furthermore, the working group has engaged in outreach through interviews, meetings, and town halls, and has operated in a way that assures that the entire University community has access to the data it has gathered and analyzed and the details of its deliberations. The information collected as part of that process is extensive and has been publicly available on the working groups website since the members began their work. On that site can be found the answers to the questions the opponents of the plan continue to pose and complain remain unanswered. The working group is now approaching the point where it will be formulating its recommendations. Despite the serious nature of the working group, the faculty opponents are not content to allow the working group to go about its business without attacking its members, its methodology, and its very premise. It appears as though the opponents are trying to discredit its work before any recommendations are submitted, and have even refused invitations to meet with the working group. In a University setting that is designed to permit different points of view and where conclusions are supposed to be based on evidence, this is disappointing. We will keep the Board fully informed as the working group puts forward its recommendations. Compensation and Loans NYUs transformation from a regional university to a major international research university was accomplished over decades through the recruitment to our community of people of great talent both faculty and senior leaders. NYUs location in one of the highest cost-of-living cities in the world adds to the competitive challenge of such recruitment efforts. As the Board knows, NYUs current processes for reviewing executive compensation meet and exceed established best practices and, of course, also comply fully with the IRSs rebuttable presumption of reasonableness. The Bylaws of NYU delegate compensation issues to the Boards Compensation Committee. In recent years, the Committee has engaged a highly regarded independent compensation consultant to aid it in its work, including providing market comparability data from peer institutions. The University reports compensation data for much of its leadership on the IRS Forms 990, which are reviewed by the Board, submitted to the IRS annually, and publicly available. By way of context, we are pleased to report that the median compensation for NYUs full professors and assistant professors is in the 99th percentile (top 1%) of the AAUPs survey of 1,250 institutions, and the median salary for associate professors is in the 98th percentile (top 2%) of the survey. For senior administrative positions, we use a compensation consultant who

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uses both national compensation surveys and data from a peer group of 30 institutions. Using peer group data, we benchmark salary to between the 75th and 90th percentiles. In addition to salary, NYU has highly competitive benefits. One of the most important tools to aid in recruitment and retention is the ability to provide housing to faculty and senior leadership, either through rental housing provided by the University or opportunities through mortgage loan assistance for home ownership. The aim of our housing programs is to have faculty, students, and senior administrators living near the campus, where they can more readily commit to and interact in university life, including academic and extracurricular activities; these programs have been indispensable to NYUs transformation. In the case of senior administrators, proximity to campus means they can be available around the clock. NYUs peer institutions typically have loan programs and other housing assistance programs for their faculty and senior administrators. These loans normally are secured and typically bear interest and, except in rare cases (typically at the recommendation of a dean), must be repaid in full if a person leaves the University. For more on these policies, please see Martin Dorphs email to the community sent in early March. TischAsia A number of false claims have been raised around the decision to suspend admissions and close TischAsia. As we have explained previously to the Board, TischAsia is a school-based graduate program initiated and managed by the Tisch School of the Arts (TSOA); it was not an initiative of or operated by the Universitys Global Programs office, and was not connected to NYUs other network sites. Largely for financial reasons, admissions to TischAsia have been suspended and the campus will close after summer 2015. That timing was determined because it enables us to honor all faculty contracts and support the current students at TischAsia in completing their degrees. Regardless of TischAsias considerable academic and artistic success, the approved financial plan which was a condition of financial support by the Singapore Economic Development Board (EDB) projected a total operating deficit after the first five years of full operations of not greater than $8.9M SGD (approximately $7.2M USD based on todays exchange rate), and included no subsidy from TSOA in New York beyond a certain level of fundraising. However, the actual operating deficit over this period totaled $30.5M SGD (approximately $24.6 USD) as a result of persistent under-enrollment and significantly higher expenses than planned. As a result, TSOA has so far transferred approximately $22M SGD of its own funds to support TischAsia through FY12. And our projections ultimately indicated that finances would become more of a challenge, not less: factoring in loan repayment, TischAsia was facing a structural deficit of approximately $6.0M SGD per year going forward. And all this was apart from TischAsias need to replace its facility by April 2016 due to lease expiration. Without additional support from the Singapore government, TischAsia was not a viable entity.

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Unfortunately, after developing an extensive proposal with the National University of Singapore and a long negotiation with EDB that would have led to a financially sustainable path forward, the Singapore government decided not to support the proposal. Contrary to claims, there is no class action lawsuit of which the University is aware. A lawsuit has been brought by the former head of TischAsia, who is no longer with the University and under whose stewardship the financial difficulties emerged. TischAsia continues to be a registered charity under Singapore law (that countrys equivalent of a not-for-profit entity); however, it is and has been subject to certain taxes that have been paid (this is common in many countries in which we operate that have a VAT/GST tax system). Contrary to some claims, there are no new or additional taxes TischAsia is now required to pay. The only costs associated with the decision to close TischAsia are the existing obligations: honoring faculty contracts and keeping the campus open to enable our existing students to complete their degrees, which we consider principled commitments. Contrary to claims, there are no additional costs associated with the shutdown and, of course, given its financial trajectory, the decision to close TischAsia means savings of millions of dollars. TischAsia has enjoyed IPC (Institution of Public Character) status for three years; its renewal application for this status is currently pending. IPC status permits tax-deductible donations to be made by Singapore citizens to the Institution, not to individuals associated with the Institution. While it is the case that no tax-deductible donations can be made until the IPC status is renewed, it is also the case that TischAsias IPC status has not contributed meaningfully to its budget situation: approximately $200,000 SGD in donations has been raised since inception. Contrary to claims, the current IPC status does not prevent students enrolled in TischAsia from fundraising for their projects; in fact, just as in the U.S., donors are not permitted to use TischAsias IPC status to designate that tax-deductible gifts to a school be used for funding a specific students project. We are aware of one student who has sought funding through this route; the other film students have used conventional fundraising processes, which remain fully open to them. Lastly, with regard to the claims about visas: Tisch indicates that it has not experienced visa problems. NYU Florence There have been a number of claims put forward that inaccurately assert that NYU Florence is eliminating art history and studio arts courses. Art History will continue to offer its courses at Villa La Pietra, as it always has. In connection with a review of the studio arts course offerings, the University is changing the way it delivers instruction in studio arts, in consultation with David Darts, Chair of Steinhardt's Department of Art and Art Professions.

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For a number of years, studio arts courses have been taught on the Villa La Pietra property by faculty hired by NYU Florence. The decisions surrounding the status and location of studio arts instruction in Florence were influenced by changes in Italian labor law, the assessment of specialized space needs for the program, and ongoing conversations with academic departments in New York about what programs and courses to offer at the sites. Italian labor law changed last summer in a way that had a significant impact on the types of employment contracts we had with our faculty at NYU in Florence. Prior to this legal reform, some but not all of our faculty were hired on consultant contracts, which afforded the faculty significant freedom in structuring their classes and its content. The legal reform prohibited most consultant contracts. Instead, it required us to enter into a new type of contract with faculty dependent employment relationships that is essentially, for most contracts, a permanent arrangement. Unfortunately, the law was not finalized and entered into effect until July 18, 2012, giving us only one month before the start of the fall semester to reevaluate our curriculum and create new hiring contracts for nearly 40 people. In the fall, not having completed all of our discussions, we offered permanent contracts to those faculty we were able to determine would continue, and one-year fixed-term contracts to faculty teaching classes we were not yet sure would continue. In some cases, departments did not wish to continue with the courses offered at the site, and in other cases faculty upon review were not approved to be offered one of the permanent contracts. In yet other cases, we were still considering how best to offer the courses, such as in studio arts. At the same time that these employment conversations were occurring at NYU Florence, there was a larger effort being undertaken by the Universitys Office of Global Programs to further enhance the relationship between the sites and the departments and schools. This effort will improve faculty engagement with the sites, develop academic partnerships between departments/schools and sites, and also help students advance in their majors and otherwise satisfy their course requirements when studying away. As we move forward, each Global Site will have an advisory committee with representation from those departments invested in the site; these committees will work through these complex academic and planning decisions and provide direction to the site. With regard to studio arts in particular, there were additional issues related to space concerns at NYU Florence. In general, space is very tight in Florence, and studio arts requires specialized space. Originally, studio arts courses were taught for majors in a fine arts school in downtown Florence, SACI. Later, when that fine arts program indicated to us that it could no longer accommodate all our students, the courses were taught at La Pietra in the best space we could find. But the facilities were never adequate for the specialized needs of the studio arts program. These developments the space issues, the legal reform, and the stronger, more integrated curricular planning for global sites prompted a serious, thoughtful review of how we might best continue to provide our students education in studio arts. There was never a question of whether we would provide studio arts courses, only of how we would do it. Ultimately, we determined in consultation with the Chair of the Department of Art and Art Professions that we will continue to offer studio arts courses to students under their supervision, but not on the La

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Pietra property. We will instead return to our historical practice offering studio arts courses through accredited well-equipped studio arts facilities elsewhere in Florence. We are confident that this will enrich the range of studio arts opportunities available to our students. At the same time that these decisions on studio arts were being made, NYU Florence began strengthening academic offerings in the social sciences through stronger connections with departments at NYU, including politics. However, we are not developing new concentrations of study at the expense of studio arts, and we are not abandoning art history offerings, which will continue to be offered at La Pietra as before. In addition, while the planning effort has led to the development of a studio arts program at NYU Berlin, again, this is not at the expense of studio arts courses in Florence. Lastly, the claims being made that Sir Harold Actons bequest of Villa La Pietra requires NYU to provide a prescribed curriculum in the arts are false it is not a condition of the will. The Acton gift requires NYU to maintain his familys art collection and to use his estate for educational purposes, and expresses Sir Harolds hope that NYU will assist students in the study of art, architecture, painting, sculpture, archeology, drama, or other fields of Italian culture and humanistic studies, all of which NYU does. Regrettably, some have used inappropriately edited versions of Sir Harolds will to try to indicate wrongly that NYU is not in compliance with the will. NYU London Inaccurate comments have been made about decisions surrounding a switch to new dormitories at our London site. We entered into our current contract for dormitory space in London because the then-director of the site and student affairs staff were not fully satisfied with the then-existing dormitory provider, with whom our contract was due to expire. Our contract is with TJAC, a company that provides dormitory development services abroad to a number of institutions in the United States, including Boston University, Kent State University, and Notre Dame, among others. The arrangement NYU has with TJAC is for $5M USD per year, which includes both the rental and renovation of two dormitory properties in London. It is the case that the TJAC properties cost more on a per bed basis; this is not a surprise, as the point of effort was to secure better facilities for our students. The TJAC properties are within easy walking distance from the NYU London academic center, offer more space per student, and offer superior amenities (e.g., kitchens in each room, rather than communal kitchens shared by large numbers of students, including non-NYU students). In light of that expiring lease, TJAC worked very quickly to ready the new dorms on time so we would not have a gap in our ability to house students. It is customary in any renovation project to identify work items that need to be corrected or will be completed after occupancy (commonly known as a "punchlist") and to identify other issues after occupancy has occurred; it is fair to say that the accelerated nature of this project led to a lengthier punchlist and postoccupancy issues than we might normally expect to see. However, our lease agreement

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includes a guarantee for workmanship, and all of the workmanship-related problems encountered the significant majority of the expenses have been corrected by TJAC at its expense, not, as is claimed, the Universitys. The claims of safety issues are incorrect: none of the punchlist and other items presented risks to the safe occupancy of the buildings, and when questions regarding safety were raised, NYU retained independent consultants and assigned New York engineers and other personnel to independently assess and verify the proper operation of life safety systems and other building conditions. Indeed, these facilities exceed what is required by code in London, and are equipped with alarms, sprinklers, and second means of egress. It is also important to note that NYU received Final Certificates of approval for the work from an independent Approved Inspector in January 2011. Claims that there was scrimping on security or operations are untrue. Security arrangements are independently determined by NYUs Office of Public Safety. And while there is a normal budgetary give-and-take for any operation, by some measures the services offered in NYU London dormitories are superior to those offered in New York, including weekly professional cleaning of dorm rooms. Perhaps most persuasively, surveys of student satisfaction following their stays in these buildings show a satisfaction level of 85-90%. Contrary to assertions, NYU has no other contracts with TJAC. NYU Shanghai Admissions In October 2012, the Ministry of Education gave final approval of NYU Shanghai as the first USChinese joint-venture university. It is against that timeline just six months long that an admissions effort was undertaken to attract a class of 300 students in total. The results have been stunning. The inaugural class of NYU Shanghai will include Chinese and international students, for a total of up to 300 students (151 Chinese/up to 149 international students). The admissions process has involved two tracks: admission of Chinese national applicants who are scheduled to take the GaoKao (the Chinese national university entrance examination) in June and admission of nonChinese national applicants. The Chinese students applied through the Common Application, and we received 1,971 applications. The international students also applied through the Common Application; 3,163 applicants expressed an interest in being considered for admissions to NYU Shanghai. In order to select the Chinese students, six Candidate Events were held at the NYU Shanghai campus at ECNU. The event included sample classes, an opportunity to meet key leadership at NYU Shanghai, team-building exercises, and a writing sample. Roughly 500 Chinese applicants attended the events. From the groups who attended the Candidate Events, a total of 148 were given "conditional" admissions to NYU Shanghai. Conditional admissions offers involve bilateral commitments: NYU commits to admitting the students so long as they score within

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the top tier (roughly the top 10% of test takers) of the GaoKao exam, and in return the students commit to accept the offer of admissions. We anticipate that roughly 120 students will accept the conditional offer and will then satisfy the GaoKao score requirement. Approximately half of these students come from Shanghai and the other half from other provinces in China. The rest of the admitted students will be selected after the GaoKao has been administered and the results of the exam are available. Of the international applicants, 33 were admitted Early Decision to NYU Shanghai. For Regular Decision, over 800 international applicants were interviewed by Skype for admission. Of those, 403 international applicants were admitted. All the admitted international students were invited to an Admitted Student Weekend, either in Shanghai or New York. Over 200 students will attend the Welcome Weekends approximately 160 will attend the event in Shanghai and approximately 50 will attend the event in New York. The events include conversations with key university leaders, campus tours, cultural events, and sample classes. NYU Abu Dhabi Given its remarkable success, it is easy to forget that NYU Abu Dhabi welcomed its first class less than three years ago. Its first 450 students were selected from some 28,000 applicants, represent 89 nations around the globe, and have turned down offers from many of the worlds top universities (including Harvard, Princeton, Yale, and Oxford) in order to become pioneers at what many believe to be one of the most extraordinary developments in global higher education to date. The quality of NYUADs students is matched by its extraordinary faculty, comprised of standing faculty, based in Abu Dhabi and hired in partnership with NYU faculty on the Square; affiliated faculty, who are in Abu Dhabi for periods ranging from three-week January term classes to multi-year appointments; and visiting faculty from other institutions, including Harvard, Stanford, and Princeton. Like our students, our faculty members are excited by the opportunity to help develop a new paradigm for global higher education, the chance to work with a strong and phenomenally diverse student body, and the research opportunities available to them. For the past three years and until NYUADs Saadiyat Island campus opens in time for the 201415 academic year NYUAD has called its Downtown Campus home. The interim facility was built to accommodate a student body of no more than 600 students (which we will meet this year), but after the move to the three million square foot Saadiyat campus, the undergraduate student body will gradually increase to 2,000-2,200 undergraduate students and 400-600 graduate students. Since 2010, NYUAD students have already begun to make their marks, both globally and locally. Last year, a team comprised of four members of the Class of 2014 was one of the three global winners of the prestigious Hult Global Case Challenge. The team, with students from China, Taiwan, India, and Pakistan, developed a plan to bring solar-powered lights to one million homes in Africa. President Bill Clinton, who presented the team with the prize, later cited the NYUAD team in his article, The Case for Optimism, in Time Magazine (October 21, 2012). In addition, this past fall, an NYUAD sophomore developed the first-ever Sila Conference (Sila means connection in Arabic), which brought together students from eight Abu Dhabi-based

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universities interested in addressing local issues. The winning team, Green Wudhu, won $5,000 to implement a pilot of its proposal to separate and repurpose the water used at mosques for the washing of the arms and face prior to prayer. The 2014 graduating class has already seen success: two candidates were selected as finalists for the prestigious Truman Scholarship. Both through the NYUAD Institute, as well as through individual contacts, NYUAD faculty have begun to forge strong relationships with leading academics and artists, both in the UAE and abroad. In addition, research by NYU faculty in Abu Dhabi and in New York advance science in frontiers such as diabetes research, language development, and environmental conservation. With more than 110 lectures, workshops, and conferences offered each year between New York and Abu Dhabi, the Institute has created a new platform for sharing new knowledge and advancing dialogue. Together, these efforts have uniquely positioned NYUAD as a facilitator around cross-cultural learning and understanding both in the region and beyond. This is clearly a challenging time in the Middle East, and there are some critics who believe that NYUAD should use its position to critique the UAE government and its policies. There are others who say we never should have opened a campus in the UAE in the first place. We believe that we can have a far greater impact on society not just in the UAE, but in fact, around the globe by providing a world-class education, by creating knowledge, by teaching critical thinking, and, perhaps most importantly, by identifying and focusing on what we share in common, as opposed to simply zeroing in on how we are different. Some core principles have governed NYU Abu Dhabi from the beginning. NYU Abu Dhabi operates consistent with the 1940 Statement of Principles on Academic Freedom and Tenure of the American Association of University Professors and the Association of American Colleges and Universities, as NYU does in Washington Square. While there have been a variety of wholly unsubstantiated claims about day-to-day life in Abu Dhabi, we did want to address several here. First, despite the recent public allegations of at least one faculty member, individuals in Abu Dhabi are free to carry cameras on the street. It is true, however, that we obtain permits for film students prior to their filming in public areas; this, incidentally, is hardly unique to Abu Dhabi permits must be obtained from the City for filming in public places in New York. Contrary to claims, students have not submitted their scripts to the government for approval. There have also been a number of allegations about the treatment of a variety of groups in the UAE, which completely distort the reality of day-to-day life at NYUAD. The bottom line is that the NYUAD community is a phenomenally diverse and inclusive one, and Abu Dhabi is a place in which members of the NYUAD community can feel safe and welcome. One aspect of NYUAD that has been the subject of false innuendo is the college preparatory work we have been doing with both Emirati high school students in Abu Dhabi and graduate school preparatory sessions with our own NYUAD students.

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The NYU Abu Dhabi Summer Academy one of our principal community outreach programs for the past three years is designed to enrich the academic life of a select group of Abu Dhabi high school students, many of whom will apply to top colleges both inside and outside of Abu Dhabi, and some of whom have applied and will apply to NYUAD and NYUs Washington Square campus. Students are accepted after a comprehensive selection process operated by the Summer Academys faculty and staff. Each cohort of approximately 30 students has classes in Critical Thinking and Writing, Math, Leadership, and Public Speaking, and SAT preparation over an 18-month time period, from the end of their sophomore year to the fall of their senior year. As mentioned above, part of the NYU Summer Academy curriculum includes tutoring and instruction in standardized test preparation. Following circulation of a formal Request-forProposals, Advantage Testing (AT) was chosen after a review of proposals to offer these. In addition, NYUAD contracted with AT for tutoring and test preparation for current NYUAD students who are applying to graduate school, including in law and medicine. Advantage Testing does not run or have any management role in the Summer Academy or any other NYUAD program, contrary to the allegations made. Regrettably, opponents have also sought to falsely link John Sextons son, Jed, who works for AT, to the services provided by that firm to NYUAD, and to connect John Sextons service on the not-for-profit AT Foundation Board which is a separate charitable entity to this web of innuendo. In fact: 1. Jed Sexton is not a principal or owner in AT, and did not participate in, contribute to, or even see the proposal AT submitted to NYUAD. He did not participate in the selection process or the subsequent contract negotiations. He does not profit from ATs contract from NYUAD. And, in order to avoid any appearance of a conflict, he is contractually prohibited from participating in the Summer Academy in any capacity. NYUADs agreement with AT states: The University and AT acknowledge that Jed Sexton, the son of the President and Chancellor of the University, is an employee of AT. To avoid any conflict of interest or appearance of impropriety, AT represents and warrants that Jed Sexton has no ownership interest in AT; that Jed Sexton is not an officer or director of AT; and that Jed Sexton will not benefit economically from this Agreement, including, without limitation, by receiving any compensation as a result of engaging in Work pursuant to this Agreement. 2. John Sexton serves on the Board of the not-for-profit AT Foundation Board, a 501(c)(3) charitable organization whose mission is to promote access to higher education to socioeconomically disadvantaged and underrepresented students; he does not have any formal, informal, paid, or unpaid position with Advantage Testing. In addition to John Sexton, the Foundation Board includes the president of Princeton and the dean of Harvard Law School. As Board members of a charitable organization, all are unpaid.

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3. Jed Sexton has never been a tutor in the NYUAD Summer Academy program and has never met nor taught the Summer Academy students. He has met twice on a pro bono basis (in 2009 and 2012, in New York) with classes of the Sheikh Mohamed bin Zayed Scholars an entirely separate program for Emirati college students. 4. The lack of a mention of Advantage Testing on the Summer Academy website is in keeping with NYUs general practice of not promoting a vendor or allowing a vendor to use its affiliation with NYU to promote itself. Conclusion As members of a university community, we expect to be in an environment of inquiry, questioning, debate, and critique no matter what the topic may be; nor do we expect any topic to be off limits. And, as members of the university administration, we understand our role in supporting and being responsive to the needs and concerns of the faculty we serve. Nonetheless, it is our hope as colleagues that such inquiry, questioning, debate, and critique will be on the facts and merits, and will be conducted with respect for the individuals involved on all sides of the debate, so that we may serve as a model for others as we work to make our university stronger and better.

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BULLET POINT SUMMARY FAS Vote of No Confidence, and Faculty Engagement Vote by one of NYUs 18 schools and colleges Fewer than half of FAS faculty supported no confidence measure Tally of voters: 52% supported / 48% opposed The authority to appoint the president rests with the Board of Trustees, who have expressed their full and unanimous support of John Sexton Among the issues cited leading up to the vote was faculty governance Recent steps to address this include: Agreement on a resolution on shared governance between university administration and Faculty Senators Council Establishing committee on space priorities to review zoning envelope granted by City approvals Establishing committee on the global network Establishing committee on technology Consulting with faculty -- and student -- groups about the pending NLRB decision on grad student unionization Parts of the NYU community expressing support for John Sexton: The faculty of the School of Law voted overwhelmingly in favor of a resolution supporting John The Faculty Council of the School of Medicine voted to pass a measure of support The chairs and institute directors of the School of Medicine have issued a message of support The chairs and institute directors of the College of Dentistry and the College of Nursing have issued a message of support The officers of the NYU Alumni Association have issued a message of support Space Planning NYU 2031 is a plan to meet NYUs academic space needs over the next two decades There is a financial plan. It is available on the University Space Priorities Working Group website The plan is well within the Universitys financial capabilities As part of the capital budget, moving forward with these plans will have a de minimis impact on tuition Financial benefits of the plan include: Building on our property saves us the cost of buying land (approx. $600 million)

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Owning facilities to fulfill a variety of academic needs, rather than renting them.

Compensation and Housing/Loans Compensation Compensation is set so as to be able to attract talented scholars and senior administrators to the most cost-intensive region in the country Slightly more than half of NYUs operating budget goes towards personnel costs compensation, benefits, etc. about $1.2 billion per year NYUs full professors and assistant professors are in the 99th percentile (top 1% nationally), and associate professors are in the 98th percentile (top 2% nationally), according to AAUP survey of 1,200+ institutions Compensation for senior administrators is set by the Board of Trustees Compensation Committee The Committees processes meet or exceed established best practices The Committee uses an independent outside compensation consultant to analyze market comparability data from peer institutions For senior administrators, we seek to set salaries in the range between 75th and 90th percentiles of our peer group as determined by our compensation consultant Payments when an employee leaves are rare; when it is done, it is to honor a contract Housing/Loans Housing is extremely expensive in New York City. NYUs faculty housing program is a crucial resource for attracting talented scholars and senior administrators to NYU, and for building a vibrant university community near our campus core Most major research universities have some kind of housing assistance program either loans or rental housing or both 1,200 active or retired faculty live in NYU-owned housing Of the 168 loans totaling $72 million, 164 are to faculty members The vast majority provide an investment return not a cost to the University, either through interest paid or through sharing on increased value in the property at the time of sale NYU provides some loans to some faculty in NYU-owned housing in order to free up space in faculty housing for incoming faculty members Few loans are forgiven, and then only for the purposes of retention

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TischAsia TischAsia was a stand-alone, school-developed site, not part of the GNU While an artistic and academic success, TischAsia was not financially sustainable It was out of alignment with its approved financial plan Expenses were too high Revenues and enrollment were too low Required about $6 million per year from TSOA in New York to operate Projections showed the financial challenges would grow When these problems were recognized, a team from the University spent months trying to make it financially sustainable, working with partners in Singapore Ultimately, the Singaporean government decided not to provide necessary additional financing, so we suspended any new admissions There are no additional expenses connected with TischAsias closing beyond its commitment with students and faculty foremost in mind to: Keeping the campus open through the end of summer 2015 so that all students currently enrolled in TischAsia can graduate from TischAsia Honoring all faculty contracts TischAsia is a registered charity in Singapore; its status as an Institute of Public Character (IPC) is currently pending renewal From its beginning, certain Singapore taxes have applied to TischAsia, and there has been no change in that status or the taxes TischAsia must pay Students are still able to fundraise for their films NYU Florence Art History and studio arts courses will continue to be offered at NYU Florence Art History courses will continue to be offered as before We are making a change in the way we offer studio arts courses: Going forward, they will be offered as they were originally at NYU Florence at a fine arts institute in downtown Florence, rather than on the La Pietra property. This will permit students to take a wider range of studio arts courses in a better facility. Key elements of the decision were: Changes to Italian labor law that required NYU to offer permanent contracts to faculty going forward, necessitating a careful reevaluation of the faculty

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A lack of adequate specialized space needed for studio arts at the La Pietra property A coordinated curricular planning effort by Global Programs across all the global sites

NYU London NYU London moved to new dormitories because of student and staff dissatisfaction with the prior student residences While the new residences are more expensive on a per bed basis, that is to be expected as the purpose was to improve the student residences o Location is better Better neighborhood Closer to academic facility o More spacious student rooms o Better amenities Contrary to claims, there was no scrimping on safety or security o Security was determined by NYU Public Safety Department o Any safety issues were reviewed by engineers from Washington Square Facilities have sprinklers, alarm system, second means of egress The contract for the new facility has a workmanship guarantee; the vendor TJAC paid for the significant majority of outstanding issues that needed to be addressed. Contrary to assertions, NYU does not have other contracts with TJAC NYU Abu Dhabi and AT Advantage Testing a leading tutoring and test preparation service does not run or have any management role in the Summer Academy or any other NYUAD program, contrary to the allegations made Regrettably, some have sought to falsely link John Sextons son, Jed, who works for AT, to the services provided by that firm to NYUAD, and to connect John Sextons service on the not-for-profit AT Foundation Board which is a separate charitable entity, to this web of innuendo. In fact: Jed Sexton is not a principal or owner in AT, and did not participate in, contribute to, or even see the proposal AT submitted to NYUAD. He did not participate in the selection process or the subsequent contract negotiations. John Sexton serves on the Board of the not-for-profit AT Foundation Board, a 501(c)(3) charitable organization; he does not have any formal, informal, paid, or unpaid position with Advantage Testing. The Foundation board includes the president of Princeton and the dean of Harvard Law School. As Board members of a charitable organization, all are unpaid.

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Jed Sexton has never been a tutor in the NYUAD Summer Academy program and has never met nor taught the Summer Academy students. The lack of a mention of Advantage Testing on the Summer Academy website is in keeping with NYUs general practice of not promoting a vendor or allowing a vendor to use its affiliation with NYU to promote itself.