Report No. 2011-55
September 2011
Complete Report
Findings in the audit of the Department of Higher Education, Separation and Retention Contracts of University Officials
Background
In a prior audit report, Report No. 2000-24, we concluded while most high-ranking university officials' contracts reviewed contained reasonable provisions, some did not adequately protect the university and contained provisions that appeared excessive or unwarranted. In the current audit, we looked at the employment contracts of the four chancellors of the four University of Missouri campuses and the nine presidents of the other Missouri public 4-year institutions. We determined five of the agreements contained provisions that may not comply with state law and/or may not be in the best interest of the university.
Missouri Southern State University (MSSU)
MSSU entered a separation agreement with then-President Dr. Julio S. Leon in August 2007 which entitled Dr. Leon to a payment of $168,518 upon his resignation with no obligation to perform any future tasks, duties or obligations for the university. Dr. Leon, who had been with MSSU for 38 years, 25 of which he was President, was also to be named "President Emeritus" and be provided a faculty office and computer in the Business School. Dr. Leon had the option of teaching part-time at the prorated compensation rate as the highest paid professor, but Dr. Leon did not exercise this option. The August 2007 agreement was a modification of Dr. Leon's existing employment contract which provided for a 6 month sabbatical at his monthly base pay upon his resignation, provided that he gave a full year's notice of his intention to resign. In addition, he would have the right to teach at a salary equal to 115 percent of the highest paid professor's salary, and, if he were terminated for any reason other than for cause, he would received his base pay for 12 months. Neither agreement explains the purpose of the contemplated post-employment payments, and MSSU did not provide an explanation upon our request.
Northwest Missouri State University (NWMSU)
NWMSU executed an employment agreement with then-President Dr. Dean L. Hubbard which entitled him to the same annual presidential salary ($224,762) for the year after he resigned as President, but did not identify any specific duties to be performed by him during that year. In addition to the salary, Dr. Hubbard received health and accident insurance for himself and his spouse for 2 years after his resignation, and the university spent $8,930 to relocate Dr. Hubbard to Kansas City. It is not clear whether the services Dr. Hubbard performed on behalf of NWMSU during this transition year, warranted the compensation and benefits he received. Dr. Hubbard served as President of NWMSU for 25 years. A more complete explanation of Dr. Hubbard's employment agreement is available in our recently issued audit report of NWMSU, Report No. 2011-47.
Harris Stowe State University (HSSU)
In August 2010, HSSU entered into a contract with then-President Dr. Henry Givens, Jr. which provided he would serve as an advisor for 2 years after his resignation for $70,000 a year, during which time he would research and write a partial history of HSSU, assist in fund raising, and provide advice on legislative matters and campus expansion projects. Dr. Givens told us this compensation would come from private or other sources, rather than university funds. In addition, Dr. Givens was provided lifetime participation in the university's medical, dental, and vision and long-term care insurance programs, and lifetime $100,000 term life insurance, in recognition of Dr. Givens' 30 years of service and his willingness to forego other employment opportunities. Dr. Givens is also entitled to a paid partial sabbatical leave, but he said he did not expect to have time to take it.
Truman State University (TSU)
After 5 years as President of TSU, Dr. Barbara B. Dixon expressed a desire to resign, and she and the Board of Governors entered into a separation agreement under which she received a salary of $205,050 to serve as a consultant to the Board of Governors for a year. In addition, she was entitled to receive $10,000 at the end of that year if she performed satisfactorily and to receive an additional 6 months of health insurance. According to TSU officials, the $10,000 payment was paid, but payment for the additional 6 months of health insurance was not made. The only documented task or duty Dr. Dixon performed during this paid year was to document her thoughts and recommendations regarding cost saving measures.
Missouri State University (MSU)
Dr. Michael T. Nietzel resigned as President of MSU after 5 years. Dr. Nietzel's contract entitled him to become a tenured professor in the Department of Psychology at an annual salary of $160,423, which is approximately $68,000 more per year than the highest paid faculty member in the department. In addition, Dr. Nietzel's contract with MSU entitled him to a semester of leave at his new full salary rate or 1 year off at one-half pay; Dr. Nietzel chose to take one semester off and was compensated $80,211 for his paid leave of absence during the fall of 2010. During at least part of this time, Dr. Nietzel served as an unpaid advisor to the Governor on higher education matters. A more complete explanation of Dr. Nietzel's contract is available in Report No. 2010-125, Missouri State University, issued in October 2010.
Because of the limited objective of this review, no overall rating is provided.
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