The initiative is being pushed by SA4C, a group that has gotten lots of attention as opponents of the University's efforts in recent years to shut down the Greek system (though their agenda also includes concerns about how liberal the faculty is).
In the abstract, having a majority of the Board elected by alumni is a fine idea. In practice, it means having a majority of the Board elected by SA4C, since that's the only group of alumni organized enough to field candidates and know enough about where the candidates stand to cast a meaningful vote. On the other hand, the Initiative's system at least opens up the opportunity for another group to similarly organize. And the current system gave us Buddy Karelis*, so it's hardly a paragon of effective management.
*Former university president who was forced to resign after a couple years of ineptitude and being universally reviled by everyone affiliated with the university.