San Francisco Chronicle

CEO of charity put on leave

Silicon Valley Foundation faces scandal

- By Wendy Lee and Trisha Thadani

The Silicon Valley Community Foundation, a major force in regional philanthro­py, has placed its CEO on paid administra­tive leave as an investigat­ion continues into a workplace culture that former employees say allowed bullying and sexual harassment.

The foundation said Thursday that Emmett Carson, who has led the organizati­on since 2007, would step away “until further notice” and be replaced on an interim basis by a former board member, Greg Avis.

The decision comes after the board received a letter from a group of employees asking for Carson to be put on leave during the investigat­ion, which two outside law firms are con-

ducting. A major donor has called for Carson’s resignatio­n, saying he should have been aware of the problems in the workplace and done more to prevent them.

The investigat­ion began after a report by the Chronicle of Philanthro­py, in which numerous former employees alleged that a top executive at the foundation, Mari Ellen Loijens, harassed and bullied them. Loijens resigned from the foundation last week.

Neither Carson nor Loijens responded to a request for comment Thursday.

“People did not feel safe at the Community Foundation, and that definitely came from the top,” said Patti Pace, a former corporate philanthro­py manager at the foundation.

The Silicon Valley Community Foundation bills itself as the largest community foundation in the world. It has grown dramatical­ly under the leadership of Carson, one of the most prominent African American voices in philanthro­py nationally. Its assets under management soared to $13.5 billion last year, overtaking the Ford Foundation — up from $1.7 billion in 2007, when Carson took over.

But many former employees have said that despite the success, working at the foundation could be unpleasant. Loijens, they have alleged, made off-color or inappropri­ate remarks — labeling employee outfits as “sexy,” for example — and berated people to the point where it was insufferab­le.

Steve Kirsch, who has donated more than $10 million to the foundation, said Carson should step down. He called the board’s action to put Carson on leave “long overdue.”

“If Emmett didn’t know what was going on, he should be fired,” Kirsch said. “If he did know what was going on and didn’t stop it, he should be fired. He’s in a no-win situation as far as I can see.”

Last week, Carson tweeted that as CEO, he is responsibl­e for workplace culture.

“I am deeply troubled and regret that former staff felt they could not report inappropri­ate behavior and urge any other staff to come forward,” he wrote. “Listening and fixing this is Priority#1.”

The law firms hired by the foundation will evaluate management processes, claims of inappropri­ate behavior, the workplace environmen­t and how reports of misconduct have been handled. The foundation acknowledg­ed this week that “we may have a larger culture issue that needs to be addressed.”

On Wednesday, board member Julie Kwon, a partner at law firm McDermott Will & Emery, confirmed receiving a letter from the foundation’s staff. “We are reviewing it and we want to respond pretty immediatel­y,” she said, prior to the announceme­nt that Carson would step aside.

A day later, the foundation put Carson on paid leave. His salary is $892,689 according to

a 2016 form filed with the IRS. He also received $56,490 in other compensati­on from the organizati­on and related groups, according to the form.

A significan­t portion of the Silicon Valley Community Foundation’s assets are in donor-advised funds, which are individual accounts that allow donors — such as people or companies — to recommend what charities should get grants from their fund.

The foundation provides grants to nonprofits, commission­s research and works with other organizati­ons on projects such as an examinatio­n of the Bay Area’s job growth, population and housing that it recently did with the Silicon Valley Leadership Group.

Carl Guardino, CEO of the leadership group, said he was “stunned and saddened” to

hear about the allegation­s of misconduct at the foundation, but did not think it will affect his group’s future work with the foundation.

“All of us deserve a nurturing, positive, caring and profession­al work environmen­t,” he said.

Greg Avis, a founding board member and former chairman will become the foundation’s interim CEO. Avis, who could not be reached for comment, is a managing partner at private investment firm Bangtail Partners and serves on dozens of company boards.

Carson came to the Silicon Valley Community Foundation after spending 12 years as CEO at the Minneapoli­s Foundation, which administer­s charitable funds and makes investment­s to shape public policy. He’s also on The Chronicle’s VisionSF nominating committee, which chooses candidates for the paper’s Visionary of the Year Award.

In Minnesota, Carson was known as a champion of lowincome people, and sought to support groups that addressed gang violence, among others.

“He’s somebody that has a lot of empathy for the plight of people who are less fortunate than he is,” said Gary Cunningham, a trustee of the Minneapoli­s Foundation.

The Silicon Valley foundation’s success in fundraisin­g — its donors include Facebook CEO Mark Zuckerberg and GoPro CEO Nick Woodman — may have caused its leaders to overlook alleged inappropri­ate behavior by Loijens, according to Kyle Mayer, an associate professor of strategy at the University of Southern California.

“In most organizati­ons, the more talented you are, the more leeway you get to be ‘rough around the edges,’ ” Mayer said.

The board will need to determine whether Carson will be able to gain the trust and support of employees (more than 200 as of 2016) and donors, Mayer said. At Uber — another recent case of workplace misconduct — CEO Travis Kalanick was forced out when the board was not convinced he could change the culture, Mayer said.

Cunningham cautioned that the investigat­ion has just begun.

“We live in a society where you’re not tried before the investigat­ion is over,” Cunningham said. “You should be innocent until proven guilty.”

 ?? Paras Griffin / Getty Images ?? Allegation­s against his chief fundraiser landed Silicon Valley Community Foundation CEO Emmett Carson on leave.
Paras Griffin / Getty Images Allegation­s against his chief fundraiser landed Silicon Valley Community Foundation CEO Emmett Carson on leave.

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