Business Case Studies & Business Publications

USA Track & Field: Getting Its Governanc...

Cheng, Yo-Jud, Mai...

Case

USA Track & Field: Getting Its Governance on Track

Cheng, Yo-Jud; Maiden, Stephen E.

S-0352 | Published August 6, 2021 | 17 pages Case

Collection: Darden School of Business

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This public-sourced case set in May 2020 examines various corporate governance issues that have arisen for the nonprofit USA Track & Field (USATF). The case’s protagonist is board member Tricia Myers who considers how the board can better serve its constituents as they are inundated with a torrent of issues around CEO compensation, fundraising, and governance regulations. The board faces a fire drill as CEO Max Siegel’s high compensation has just been made public, surprising the board and requiring a response. Students can use the data provided in the case to evaluate whether Siegel’s compensation package is “fair and reasonable” for a nonprofit executive and recommend next steps. The board also grapples with whether Nike’s influence over USATF has grown too large after Siegel signed a long-term sponsorship contract with the company that provided the bulk of USATF’s total revenues but also created potential conflicts of interest and polarized USATF’s elite athletes. Lastly, the board contemplates regulatory changes imposed by the US Olympic and Paralympic Committee and the implications for its membership base. This case allows for a rich discussion about a nonprofit’s mission statement and business model, aligning stakeholder interests, and the role of nonprofit board members.

•To understand differences in corporate governance regulations, norms, and expectations in nonprofit versus for profit settings •To conduct a stakeholder analysis and assess whether a nonprofit is effectively fulfilling its mission statement •To role-play board members determining whether a CEO compensation package is “fair and reasonable” for a nonprofit executive •To examine the benefits and pitfalls of a sponsorship-based fundraising model •To understand the unique challenges and pressures faced by nonprofit board members