University of Delaware President Patrick Harker will step down from the post to take the top job at the Federal Reserve Bank of Philadelphia.
The regional Fed post is one of the more powerful positions in the nation, since Harker will at some point sit on the Open Market Committee, which sets monetary policy.
Harker’s decision to take the position came as something of a surprise in some quarters. The UD president, as of 2013, earned more than $700,000 a year. Federal Reserve Bank presidents, earn up to $400,0000 a year.
The choice of Harker was also a bit unusual, due to his academic background, The New York Times noted. Federal Reserve Bank presidents, are often economists. Harker, by contrast, earned is undergraduate and advanced degrees in engineering.
Harker guided UD through a difficult period that saw the university gain prestige in terms of academic performance as a “Little Ivy” university. UD was also aided by a large endowment that helped it avoid some of the financial problems of other state universities.
Harker spearheaded the purchase of the former Chrysler site that became the STAR campus UD struggled with community opponents on the Data Centers project on the STAR Campus. That project included a widely despised natural gas-fired power plant. The university later decided to terminate the lease.
Harker and the Board of Trustees went ahead with a new $130 million science building, but dropped plans for a law school.
Of late, Harker had become concerned about the costs of higher education and gained the ire of some members of the faculty in suggesting that structural changes might be needed as technology begins to play a role in learning process.
At the same time, Harker approved changes that led to smaller sizes in a few courses taken by all students.
Harker issued the following letter to the UD community:
With mixed emotions, I write to tell you I will be stepping down as president of the University of Delaware to become president and chief executive officer of the Federal Reserve Bank of Philadelphia, effective July 1.
It has been an honor and a privilege to serve as president of this University. Working with our motivated students, illustrious faculty and dedicated staff has been inspiring, invigorating and unforgettable.
Together we have accomplished much over the past eight years: facing challenges, crafting solutions, maximizing opportunities and ensuring the future of this noble institution.
With your expertise and commitment, we have enhanced our outstanding reputation and expanded UD’s contributions to the state, the nation and the world. These achievements position us well in the increasingly challenging world of higher education.
Over the next four months, I will work closely with our Board of Trustees and our dedicated administrative team to ensure smooth transition in leadership.
While I am excited about my new role with the Philadelphia Fed, I will miss working on this beautiful campus with the best students and the most dedicated faculty and staff in American higher education.
Harker’s appointment was jointly approved by eligible directors of the Philadelphia Fed’s board of directors, all nonbankers by law, and the Board of Governors of the Federal Reserve System in Washington, D.C.
Harker, who has served as a nonbanking Class B director of the Philadelphia Fed for the past three years, will succeed Charles I. Plosser, who retired effective March 1, 2015.
“We were fortunate to have an exceptional and wonderfully diverse slate of candidates and are delighted that Pat Harker emerged as the best person to serve as the next president and chief executive officer of the Federal Reserve Bank of Philadelphia,” said James E. Nevels, chairman of the Philadelphia Fed’s board of directors. “His deep roots in the region, his distinguished career in academia, his drive for innovation, and his passion to make our region an economic engine for the future truly impressed our board.”
Harker succeeded long-time UD President David Roselle in 2007, after serving as dean of the world-renowned Wharton School at the University of Pennsylvania. He followed in Roselle’s footsteps in working to enhance the academic standing of the university.
His administration did not always please alumni and football supporters by putting a stadium project on the back burner. That came after surveys of students determined that football was not a top reason for coming to UD.
Gov. Jack Markell, praised the work of the outgoing president:
“President Harker leaves UD in an outstanding position to continue as a leader in research and innovation and, most importantly, in preparing present and future classes of Blue Hens to realize their potential. From the growth of highly-skilled jobs and university activity on the STAR campus, to the instruction and cutting-edge scientific research at the new ISE Lab, to UD’s recently-launched cybersecurity initiative, President Harker’s tenure has been marked by progress in areas most important to building a stronger economy and workforce. I look forward to working with the university’s next president to build on these achievement and to continue pursuing greater educational and economic opportunities for the people of our state.”
