Terrence J. Checki
About Terrence J. Checki
Terrence J. Checki (born 1945) is an Independent Trustee of FTF, serving since 2017 and currently Chair of the Audit Committee; he is also a member of the Nominating Committee . His background includes serving as Executive Vice President of the Federal Reserve Bank of New York, heading its Emerging Markets and Internal Affairs Group and serving on its Management Committee (1995–2014), and as a Visiting Fellow at the Council on Foreign Relations (2014) . He has been a director of Hess Corporation since 2014, bringing global economic and energy industry oversight experience to the Board . Audit Committee members, including Checki, are deemed “independent” under NYSE American listing standards .
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Federal Reserve Bank of New York | Executive Vice President; Head of Emerging Markets & Internal Affairs Group; Member of Management Committee | 1995–2014 | Led EM risk analysis and internal policy oversight relevant to fund risk governance |
| Council on Foreign Relations | Visiting Fellow | 2014 | Policy research exposure supporting strategic macro oversight |
External Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Hess Corporation | Director | 2014–present | Public company board experience; energy sector insights |
| Council on Foreign Relations | Member | 1996–present | Global policy network |
| National Committee on U.S.-China Relations | Member | 1999–present | US-China expertise |
| Economic Club of New York | Board of Trustees | 2013–present | Economic leadership network |
| Foreign Policy Association | Board of Trustees | 2005–present | Foreign policy governance |
| Council of the Americas | Board of Directors | 2007–present | Pan-American business policy |
| Tallberg Foundation | Board of Directors | 2018–present | Global leadership forum |
Board Governance
- Committees: Audit Committee (Chair), with members Mary C. Choksi, Edith E. Holiday, J. Michael Luttig, and Larry D. Thompson; all are Independent Trustees under NYSE American standards .
- Nominating Committee: Member; committee comprised exclusively of Independent Trustees and sets independence and time-commitment requirements, disqualifying nominees with conflicts inconsistent with long-term shareholder interests .
- Attendance: In FY2024 there were eight Board meetings, eight Audit Committee meetings, and one Nominating Committee meeting; each Trustee attended at least 75% of Board and committee meetings on which they served. None of the Trustees attended the Oct 3, 2024 annual shareholders’ meeting . In FY2023 there were nine Board meetings, eight Audit Committee meetings, and one Nominating Committee meeting; each Trustee attended at least 75% of Board/committee meetings. None attended the Oct 3, 2023 annual shareholders’ meeting .
- Auditor oversight: Audit Committee selected PwC as auditors; audit fees were $120,478 (FY2023) and $125,429 (FY2024); tax fees were $0 (FY2023) and $10,000 (FY2024); no audit-related or “all other” fees to the Fund; no tax services to the Investment Manager for FY2023–FY2024 .
- Charter scope: The Audit Committee Charter codifies direct responsibility for auditor appointment/compensation, pre-approval of audit/non-audit services (or designated member approval), financial reporting oversight, and serving as the Fund’s QLCC with procedures to address material violations; at least one member must be an “audit committee financial expert,” and all must be financially literate .
- Risk oversight: The Board (with Audit Committee support) receives regular risk reports on investment, valuation, compliance, and complex instruments; Audit Committee met with internal audit and PwC; recommended inclusion of audited financials, noting no material misstatements or omissions for FY2023 and FY2024 reviews .
Fixed Compensation
| Component | 2023 | 2024 | Notes |
|---|---|---|---|
| Annual retainer (Independent Trustees) | $304,000 | $304,000 | Applies across fund complex registrants; portion allocated to FTF |
| Regular Board meeting fee (per meeting) | $7,000 | $7,000 | Portion allocated to FTF; special meetings may be compensated |
| Audit Committee member retainer | $10,000 | $10,000 | Superseded by chair fee for Checki |
| Audit Committee meeting fee (per meeting) | $3,000 | $3,000 | Portion allocated to FTF |
| Audit Committee Chair fee (Checki) | $50,000 | $50,000 | In lieu of Audit Committee member retainer |
| Lead Independent supplemental retainer | $40,000 | $40,000 | Not attributed to Checki unless designated; structure noted |
| Aggregate compensation from FTF (FY) | $466 (FY2023) | $444.80 (FY2024) | FTF-specific allocation |
| Total compensation from Franklin Templeton fund complex (CY) | $759,849 (CY2023) | $725,000 (CY2024) | Across boards served in complex |
| Boards served in Franklin Templeton fund complex | 35 | 34 | U.S.-registered investment companies count |
| Expense reimbursement | Yes (travel, education, seminars) | Yes (travel, education, seminars) | Standard for Independent Trustees |
Performance Compensation
- Structure: Compensation disclosed consists of cash retainers and meeting fees; the Audit Committee Chair receives a fixed annual chair fee. No performance-based bonuses, stock awards, or options are described for Independent Trustees .
- Audit Committee outcomes: The Committee recommended inclusion of audited financials after reviews with PwC and management, noting no material misstatements/omissions (FY2023 and FY2024), which supports effective oversight rather than pay-for-performance mechanisms .
| Ownership Alignment Policy Metrics | Requirement | Effective Date/Scope |
|---|---|---|
| Mandatory investment of fees | Invest one-third of trustee fees (excluding committee fees) into shares of one or more Franklin funds until holdings equal/exceed five times annual retainer and regular Board meeting fees | Policy formalized Feb 1998; applies to Board members across Franklin Templeton fund complex |
| Phase-in period | Three years for newly elected Board members | Applies to new trustees |
| Aggregation | Family member/entity holdings count toward compliance | Alignment-enhancing aggregation |
Other Directorships & Interlocks
| Company | Role | Sector | Tenure | Potential Interlocks/Notes |
|---|---|---|---|---|
| Hess Corporation | Director | Exploration & production (oil & gas) | 2014–present | No related-party transactions with FTF disclosed; Nominating Committee screens conflicts and can disqualify nominees with conflicting associations |
Expertise & Qualifications
- Emerging markets and macro risk: Two decades of central banking leadership, including EVP role at FRBNY with EM focus .
- Financial reporting oversight: Audit Committee Chair in a closed-end fund; Charter requires financial literacy for all members and an audit committee financial expert on the committee .
- Global policy and governance networks: Active roles at CFR, National Committee on U.S.-China Relations, Council of the Americas, Economic Club of New York, and Foreign Policy Association .
Equity Ownership
| Item | As of mid-2024 | As of Aug 4, 2025 |
|---|---|---|
| Dollar range of equity securities in FTF (Checki) | None | None |
| Aggregate dollar range of holdings in all Franklin Templeton funds overseen | Over $100,000 | Over $100,000 |
| Ownership concentration | No Trustee owned ≥1% of FTF; officers and trustees as a group owned <1% | No Trustee owned ≥1% of FTF; officers and trustees as a group owned <1% |
Governance Assessment
- Positives: Independent status; Audit Committee Chair; robust Charter with direct auditor oversight, QLCC role, and financial literacy/expert requirements; consistent attendance ≥75% across Board and committee meetings; structured ownership alignment via mandatory fee investment policy .
- Watch items: Direct holdings in FTF reported as “None” despite aggregate complex holdings >$100k, which may temper perceived alignment at the specific fund level . Aggregate non-audit fees to PwC across the manager’s affiliates rose in FY2024 ($471,950 vs. $190,800 in FY2023) and the Committee has no written pre-approval policy (services must be directly pre-approved), warranting ongoing auditor-independence vigilance . Non-attendance by Trustees at annual shareholders’ meetings in 2023 and 2024 suggests limited direct shareholder engagement at annual meetings, though meeting attendance thresholds were met .