What could pay the severance package of the former WNMU president?

Former Western New Mexico University president Joseph Shepard’s controversial severance package would have funded more tuition, according to a study, while the state’s governor says the money could have helped feed hungry students at the university for a year.

Judith Wilde, a research professor at George Mason University who studies presidential compensation and contracts, previously said. Within Higher Ed that Shepard’s exit package could have funded 90 scholarships for undergraduate students in Western New Mexico.

For Gov. Michelle Lujan Grisham, a Democrat, the decision to green light a $1.9 million severance payment to the outgoing president “showed a shocking cut to the needs of our country, where the median income for a family of four is just $61,000.”

“The sum of money contained in Dr. Shepard’s severance agreement could have addressed food insecurity for the entire WNMU student body for an entire year,” Lujan Grisham said in a news release last week.

An estimated $3.5 million package — including benefits — for a president accused of misusing taxpayer dollars has angered state lawmakers and led to the resignation of several officials. It is expected that there will be a big conflict as the government lawyer wants to withdraw the severance pay.

Shepard’s last day as president was Wednesday.

Shepard, who led the university for 13 years, makes a base salary of $365,000 a year. He’s not the only college president who has received a lot of discipline on his way out the door, but compared to deals at other institutions, the deal is unusually lucrative and will cost the university more than most line items in its budget. For example, when Ben Sasse stepped down as president of the University of Florida, he made a deal to keep his $1 million annual salary until 2028 even though he was out of the top job. But UF’s annual budget is just over $5 billion, meaning Sasse’s severance package covers a fraction of the university’s expenses.

In comparison, Shepard’s exit package far exceeds that of other former presidents in his state. The New Mexico State University system agreed to pay former chancellor Dan Arvizu’s contract when he leaves in early 2023, a move called a “severance” amid controversy. That deal was estimated at $500,000 to $650,000. In 2016, Bob Frank stepped down as president of the University of New Mexico amid allegations of abuse, receiving a $190,000-a-year tenure as a professor—down from the $350,000 annual salary originally considered.

At WNMU, a university that enrolled 3,570 students in the fall of 2023, Shepard’s total outlay adds about 5 percent of its fiscal year 2024 budget of $74.2 million, Within Higher Ed analysis found.

In one of the poorest states in the union, more than half of WNMU students receive Pell Grants. A 2023 study also found that nearly 60 percent of college students in New Mexico were food insecure, prompting efforts at Western New Mexico and other colleges to address the issue.

Shepard’s exit package has baffled lawmakers, particularly because of the state’s economic challenges and a federal investigation that found the outgoing president improperly spent $360,000 in taxpayer money on foreign travel, lavish resorts and expensive furniture. Had the board chosen to fire Shepard without cause, it would have spent nearly $600,000 to sever ties with him. Or the board could have waited for another federal investigation to be completed, which would have given them a reason to fire him without spending any more money, depending on the findings.

Instead, the regents cut him a $1.9 million check and offered him a tenure-track position teaching two courses a year with a distance option. In total, those benefits add up to $3.5 million, Wilde estimated. (WNMU officials said the money was paid out of pocket.)

Four of WNMU’s five regents resigned under the scrutiny of lawmakers, including the governor. Attorney General Raúl Torrez also called for an investigation into Shepard’s “golden parachute” and sought an injunction to prevent him from accessing the $1.9 million severance payment as the state challenges the contract. However, a judge rejected a request to freeze those fees on Monday. A legal challenge to the contract is pending.

But John C. Anderson, Shepard’s attorney, defended the payment as “appropriate” and said the former president “worked diligently on behalf of Western New Mexico University for nearly 14 years to increase graduation rates, modernize the campus through major renovations and construction of new buildings.” , and expanding school programs,” among other accomplishments. (Shepard’s legal team also disputed the $3.5 million estimate but did not provide a figure.)

As the legal battle continues, Within Higher Ed looked at WNMU’s budget to determine how Shepard’s controversial severance package stacks up against running costs, academic support, faculty salaries and other items in the 2024 fiscal year budget, which was last updated in December. Although Shepard has already received a payout of nearly $2 million, the remainder of his contract will be paid to him as a tenured faculty member who will initially make $200,000 a year. His salary will be paid by the business school.

• WNMU athletics teams—known as the Mustangs—compete at the NCAA Division II level. Western New Mexico University sponsors 13 sports with an athletic budget of $5.4 million.
• The student resources budget at WNMU is $4.5 million. That money is spread across a range of contributions from disability services to special events funding and student health and wellness.
• WNMU has budgeted $4.4 million for campus operations and maintenance.
• WNMU has earmarked $3.9 million for tuition.
• The student financial aid budget at WNMU was $1.2 million.
• Shepard’s severance package also exceeds the total faculty salaries of any department at WNMU. The nursing department has 19 full-time faculty members, who earn a combined salary of $1.4 million, according to budget documents. Nursing appears to be the largest program at WNMU based on the number of full-time employees listed. Social work is also among the university’s largest programs, with 17.2 full-time faculty members ranked earning just over $1 million.