Penn State trustees Karen Peetz resigns; Ira Lubert replaces her

The bank president who led Pennsylvania State University's board of trustees in the aftermath of the Jerry Sandusky child sex-abuse scandal has resigned, citing conflicting business demands.

Karen Peetz, president of BNY Mellon in New York, will leave the board effective Thursday, one day before the board's next scheduled meeting in State College, board chair Keith Masser said in an e-mail to trustees Friday. As her final act as a trustee, she will chair a board committee meeting Thursday on audit and risk.

Masser appointed Ira M. Lubert - a Philadelphia-area resident and former board member who also had served post-scandal but left in 2013 - to fill out the 18 months remaining in her term.

Neither Lubert, chairman and cofounder of Independence Capital Partners and Lubert Adler Partners, nor Peetz could be reached for comment Saturday.

Peetz, a 1977 Penn State grad, led the board in 2012, through the release of the controversial Freeh report that blamed former university administrators for covering up Sandusky's abuse and the acceptance of football sanctions by the NCAA.

Masser credited Peetz, who had been on the board since 2010, with strong leadership at a difficult time in the university's history.

"We owe Karen Peetz a great debt of gratitude for her service and her counsel," Masser said in a statement. "While not a long-standing member of the board, Karen stepped up, at great personal sacrifice, when the university needed strong leadership. She not only oversaw a number of actions that strengthened our institution for the future, but also served as chair of our presidential selection council. . . ."

Peetz had faced increasing animosity from some members of the Penn State community who blame the board for accepting the sanctions and firing the late football coach Joe Paterno in the aftermath of the scandal. "Shame on you," an audience member said to her when she exited the last board meeting in November.

Lubert, a 1973 Penn State grad who served on the board from 1997 to 2000 and from 2007 to 2013, has more than 40 years' experience in real estate and private equity.

"Ira has always been a tremendous asset to Penn State, bringing a wealth of knowledge and leadership skills to the table, as well as his business acumen and exceptional ability to build relationships," Masser said in a statement.