UPenn president Liz Magill under fire for disastrous testimony on antisemitism:

New York
CNN
 — 

The walls appear to be caving in on the University of Pennsylvania’s president, Liz Magill, who faces scathing criticism over her performance at a House hearing earlier this week.

Prominent donor Ross Stevens threatened to claw back a $100 million donation. The university’s board of trustees held an emergency meeting Thursday. And the powerful Wharton Board of Advisors that leads the university’s prominent business school called for a leadership change at the university.

Magill remained president after the hastily arranged board gathering concluded Thursday, a source familiar with the proceedings told CNN. But Magill faced a rebellion from Wharton’s Board of Advisors, and a growing coalition of donors, politicians and business leaders who denounced her testimony.

During Tuesday’s House hearing, Magill, along with the presidents of Harvard and MIT, did not explicitly say that calling for the genocide of Jews would necessarily violate their code of conduct on bullying or harassment. Instead, they explained it would depend on the circumstances and conduct.

Magill had already been under fire from prominent donors, faculty, students and alumni prior to Tuesday’s hearing after multiple incidents of antisemitism on campus in recent months – and what critics have said was a tepid response to those incidents.

A major donor called on Magill to resign and threatened to rescind stock, costing the university $100 million if she doesn’t.

Wall Street CEO Ross Stevens sent a letter on Thursday to Penn threatening to take steps that would cost the Ivy League school approximately $100 million if Magill stays on as president, CNN has learned.

Stevens, a Penn alum and CEO of Stone Ridge Holdings, argues he has clear grounds to rescind $100 million worth of shares in his company that are currently held by Penn. He specifically cites Magill’s disastrous testimony before Congress earlier this week.

“Absent a change in leadership and values at Penn in the very near future, I plan to rescind Penn’s Stone Ridge shares to help prevent any further reputational and other damage to Stone Ridge as a result of our relationship with Penn and Liz Magill,” Stevens said in a note to his employees on Thursday obtained by CNN.

Lawyers at Davis Polk, representing Stone Ridge, wrote a letter to Penn that cites an agreement between the school and the firm. That agreement, according to Stone Ridge, gives the firm the ability to retire the shares for cause, including potential damage to Stone Ridge’s “reputation, character, or standing.”

The Wharton Board of Advisors, comprised of a who’s who group of business leaders, has joined the growing chorus of voices calling for Magill’s immediate ouster.

“As a result of the University leadership’s stated beliefs and collective failure to act, our Board respectfully suggests to you and the Board of Trustees that the University requires new leadership with immediate effect,” the Wharton Board of Advisors wrote in a letter sent directly to Magill.

The letter, which appears to have been sent Wednesday, specifically cites Magill’s disastrous testimony.

“In light of your testimony yesterday before Congress, we demand the University clarify its position regarding any call for harm to any group of people immediately, change any policies that allow such conduct with immediate effect, and discipline any offenders expeditiously,” the letter reads.

The strong criticism comes from an influential group of Penn alumni. Its members include billionaire NFL owner Josh Harris, former Johnson & Johnson CEO Alex Gorsky, Related Companies CEO Jeff Blau, Blackstone exec David Blitzer and BET CEO Scott Mills, according to the Wharton Board of Advisors website.

“Our board has been, and remains, deeply concerned about the dangerous and toxic culture on our campus that has been led by a select group of students and faculty and has been permitted by University leadership,” the Wharton board letter said.

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