Investment Chief Quits Under Tough Questioning

AUSTIN, Texas (AP) _ State senators posed tough questions Thursday to officials of the University of Texas System’s outside investment company over a $1 million bonus for its chief executive, leading to an angry exchange in which the chairman of the company’s board declared his resignation.

“You can have my job _ I resign. I’m out of here,” said Robert Rowling, a UT regent who also serves as chairman of the board of the University of Texas Investment Management Company.

The company also oversees investments for The Texas A&M University System.

Rowling said the bonus was for the year ending June 30. That was before the meltdown in financial markets. Rowling said UTIMCO bonuses were spelled out in a compensation contract and that the company has done better with its investments recently than many of its counterparts around the country.

Rowling made his comment about resigning in an exchange with Republican Sen. Kevin Eltife of Tyler before the Senate Finance Committee.

“It shatters the trust in government,” Eltife said of the bonuses. “This is shameful.”

Members of the Senate Finance Committee questioned the $1.05 million bonus for UTIMCO CEO Bruce Zimmerman and $2.3 million combined for assorted staff members that were outlined in a critical letter by Gov. Rick Perry and Lt. Gov. David Dewhurst.

UT System officials and Perry’s spokespeople said they weren’t sure whether Rowling was saying he was stepping down only as UTIMCO chairman or as a regent. They had no immediate comment on the outburst. Rowling himself was not immediately available for further comment, the UT System said.