Smithsonian Panel Advises Stronger Link With Business Arm

The task force said Smithsonian magazine and two other publications, Air & Space magazine and a visitors' guide, "are the Smithsonian's largest source of business revenue, producing net gain of over $11 million on total advertising and circulation revenue of over $65 million" in fiscal year 2007.

Even though the report found that revenue from the retail stores has been "essentially flat" since the creation of SBV in 1999, it recommended against having an outside firm run them. The task force suggested a new "grouping under a new leadership position." Samper, who said he pushed for outsourcing a year ago, added the panel had looked closely at outsourcing the stores but the revenue increases would have been slight.

In a brief review of the Showtime agreement, the report said, "The early revenues generated by this venture are providing some funds to cash-strapped programmatic units. A key factor for whether future financial contributions grow will be whether Networks programming obtains additional carriage on cable and satellite platforms."

Members of Congress had questioned the salaries of the SBV executives.

Beer had a salary of $570,317 in 2005, according to the inspector general. The Smithsonian tax return for 2005 reported that five people from the business unit received base salaries of more than $300,000.

The report recommended that the Smithsonian continue the "pay for performance" standard for the business unit. Samper said the executive bonuses -- previously approved by the SBV board, which was abolished yesterday -- would be reviewed by the regents' compensation committee.

The nine-member task force was chaired by Marshall Turner, the former board chairman of the National Museum of Natural History.

Also yesterday, the regents unanimously elected Roger W. Sant chairman of the regents, a new position that will be the public voice of the governing board. U.S. Supreme Court Chief Justice John Roberts will continue to hold the post of chancellor and conduct the meetings.