New Mexico attorney general sues university over ‘golden parachute’ payment to outgoing president
ALBUQUERQUE, N.M. — New mexico’s top prosecutor is suing the regents and outgoing president of western new mexico university in an effort lucrative severance package including a nearly $2 million payout approved in its aftermath a damning report which detailed wasteful spending and lax financial oversight of the school.
State Attorney General Raúl Torrez has raised a number of allegations, including breaches of fiduciary duty and violations of the open meetings law and the state constitution. He also raised questions about who at the university rushed to give Shepard a check, noting that some regents had already resigned. under pressure from the governor.
The attorney general’s office initially filed an emergency motion in district court to delay any payouts to Shepard, unaware that a check had already been issued on January 2.
The state is now seeking to block Shepherd from spending the money and is asking the court to set up a trust where the money can be deposited until the legal dispute is resolved.
Despite requests for documentation from the university, Torrez said his office has not received any records showing who initiated the negotiations surrounding Shepard’s departure. He suggested that the process is tainted by greed and arrogance and that students will pay the price.
“It is absolutely shameful that the people entrusted with the job of ensuring they get the education they need to build a better future have instead used that opportunity to enrich themselves, to to go on lavish, taxpayer-funded trips, and then when they are held accountable, to hand out a golden parachute to one of their friends,” Torrez said. That won’t last.’
Shepard’s legal team disputed the attorney general’s claims, saying that regents are responsible for negotiating and approving compensation and severance agreements for executives, and that reports appeared in the local newspaper that the board would terminate the president’s contract discuss during a meeting on December 20.
John Anderson, an attorney for Shepard, said in a statement to The Associated Press that the board appointed a subcommittee to negotiate the separation agreement before it was unanimously approved.
“This entire process was handled appropriately, legally and transparently,” Anderson wrote. “Dr. Shepard did not expedite his payment. Any allegations to the contrary have no legal or factual basis.”
According to court documents, the university agreed to pay Shepard more than three times the required amount if his employment was terminated without cause. The agreement also guarantees Shepard a spot as a permanent faculty member, earning at least $200,000 annually for five years. He can serve remotely and was given an eight-month sabbatical with full pay.
The leadership change follows an investigation by the state auditor’s office, which found more than $363,000 in wasteful spending and improper use of public funds.
State legislators started to raise questions in 2023 about Shepard’s spending on international travel and luxury furnishings and his wife Valerie Plame’s use of a college purchasing card. At the time, Shepard said the regents had vetted his spending requests and that he was familiar with the policy on the use of public money.
The events could prompt lawmakers to consider new legislation during the session that starts this month.
House Speaker Javier Martinez said Thursday he would support changes to ensure public institutions are run in the best interests of students and taxpayers, rather than for the personal enrichment of university officials.
“At the end of the day, this is about safeguarding the money of the people of the state of New Mexico and making sure no one is above the law,” he said.