Joseph Shepard, the former president of Western New Mexico University (WNMU), has recently left his position, walking away with a hefty exit package estimated at around $3.5 million.
This sum comprises a severance payment of $1.9 million and a guaranteed tenured faculty role.
The decision has sparked significant backlash, with critics arguing that such funds could have funded numerous scholarships or addressed student hunger on campus for an entire year.
Concerns Over Financial Mismanagement
Judith Wilde, a research professor who studies presidential pay at George Mason University, highlighted that Shepard’s severance could have provided 90 undergraduate scholarships.
New Mexico’s Governor, Michelle Lujan Grisham, also voiced her concerns, pointing out the stark economic realities in the state where typical family income stands at about $61,000.
She emphasized that the amount designated for Shepard could have substantially alleviated food insecurity among students at WNMU.
This generous exit package has raised eyebrows among state lawmakers, particularly in light of previous allegations against Shepard regarding the misuse of state funds, which included a staggering $360,000 spent on international trips and lavish accommodations.
The governor denounced the board’s decision to approve such a financial arrangement, claiming it illustrates a disconnect from the state’s urgent needs.
Comparison with Other State Institutions
During his 13-year tenure, Shepard commanded an annual base salary of $365,000.
His exit deal surpasses those offered to former presidents at other state institutions by a notable margin.
For instance, Dan Arvizu, the former chancellor of the New Mexico State University system, received between $500,000 and $650,000 when he left in early 2023, while Bob Frank, the former president of the University of New Mexico, had a significantly lower exit agreement worth $190,000 annually for a tenured position.
WNMU, with an enrollment of roughly 3,570 students in the Fall of 2023, operates on a budget of $74.2 million for the 2024 fiscal year.
Shepard’s compensation package accounts for nearly 5 percent of the university’s entire budget.
This is especially concerning given that more than half of WNMU’s students receive Pell Grants, and a survey reveals that about 60 percent of college students in New Mexico struggle with food insecurity.
Ongoing Investigations and Future Implications
Despite the dissatisfaction among legislators regarding Shepard’s $1.9 million severance and low-commitment tenured faculty position, investigations are already underway to potentially recuperate the severance payments amid a state review focused on allegations of financial misconduct.
In defense of the financial settlement, Shepard’s attorney argued that his accomplishments during his presidency—including improvements in graduation rates and revitalization of campus facilities—justify the substantial payout.
As the controversy unfolds, discussions about WNMU’s funding priorities are gaining traction, especially with regard to essential services like academic support and student welfare.
In the fiscal budget for 2024, WNMU has allocated $5.4 million for athletics, $4.5 million for student services, $4.4 million for campus maintenance, and $3.9 million for academic support.
In stark contrast, the total salaries for the nursing department, which employs 19 full-time faculty members, add up to just $1.4 million—illustrating a significant gap between regular faculty pay and the severance package granted to Shepard.
As developments continue, lawmakers remain vigilant, closely examining the legal implications surrounding Shepard’s exit agreement.
Source: Insidehighered