wfn.org | [PCUSANEWS] Foundation mainstay Dennis Murphy retiring after 24 years

[PCUSA NEWS <PCUSA.NEWS@ECUNET.ORG>]

Note #8934 from PCUSA NEWS to PRESBYNEWS:

05520
Sept. 27, 2005

Presbyterian Foundation mainstay
Dennis Murphy retiring after 24 years

Board takes control of investment-related social-witness policies

by Toya Richards Hill

SACRAMENTO, CA - A changing of the guard is under way at the Presbyterian
Church (U.S.A.) Foundation.

	Dennis Murphy, the foundation's executive vice president and chief
investment officer, is stepping down from his full-time position in January
2006. On tap to replace him is George Rue III, who is now the foundation's
senior vice president and acting chief investment officer.

	The foundation's advisory leadership team announced Rue's promotion
during a meeting here on Sept. 24. 

	Murphy, who has overseen the foundation's investment for 24 years,
said he "will stay connected in a business capacity with the foundation, just
not full-time."

	Murphy said he will serve in a "consulting role for at least the next
year."

	"Other than that," he added, "I'm looking at board membership on
different church and non-church organizations."

	Right now, "what I'm working on very hard is a smooth transition,"
Murphy said. "I have every confidence in George's abilities."

	The foundation's advisory leadership team told the full board that it
has formed a Social Witness Committee, and outlined some of the new
committee's roles, among them:

	Oversee all contact with the PC(USA)'s Mission Responsibility Through
Investment (MRTI) committee;

	Provide guidance to the trustees on divestment issues, shareholder
resolutions, corporate governance and proxy voting;

	Review and make recommendations about social policies reflected in
the foundation's investment portfolio;

	Partner with MRTI to maximize the value of the foundation's assets
and to honor the PC(USA)'s social and corporate-governance policies to the
extent possible as a prudent fiduciary;

	Establish procedures for implementing the partnership with MRTI; and,

	Receive MRTI recommendations on proxy voting and review the
foundation's ability to implement PC(USA) guidelines in the management of
assets.

	The foundation and its subsidiary, the New Covenant Trust Company,
manage investments for the denomination, including stocks in multinational
corporations that MRTI plans to talk to about the companies' business
practices in Israel and Palestine. The PC(USA) Board of Pensions also manages
investments for the church.

	MRTI was assigned by the 216th General Assembly to begin a process of
phased selective divestment from multinational corporations whose business
practices contribute to violence in Israel and Palestine. MRTI has selected
five companies - Caterpillar, Citigroup, ITT Industries, Motorola and United
Technologies - for "engagement."

	Foundation officials contend that any dialogue or other "engagement"
as a shareholder must come through the foundation, since it and the trust
actually own the stock held for the denomination.
	
	"The stock that is owned under the church umbrella is owned under two
entities" - the Board of Pensions and the foundation/trust, said Foundation
President and Chief Executive Officer Bob Leech. "We're accountable for the
money, the stock and how the stock is voted."

	In other actions, the foundation:

	Announced that the forecast for the balance of 2005 anticipates a
surplus of $779,000 - $452,000 from the foundation and $327,000 from New
Covenant Trust Company's net income after taxes;

	Approved a 1 percent across-the-board bonus to all foundation
employees, to be distributed in December; and,

	Authorized creation of a 3 percent "merit pool" to be available
organization-wide for merit raises for employees, effective Jan. 1, 2006.

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