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Written by: Mohammed Elmeshad
Published: 10/26/2005 Former President of American University Gets $3.75 Million 'Golden Parachute'
Ousted American University President Benjamin Ladner is getting his “golden parachute” after all, with a severance package worth about $3.75 million. Ladner agreed to the deal that allowed him to sever ties with the university by resigning rather than being fired. It includes a deferred payment of $2.75 million and a one-time payment of $950,000.
Former President Ladner was relieved of his duties on October 10, 2005 after an investigation found evidence of excessive and unlawful spending of university funds by him and his wife Nancy.
George J. Collins a member of the board of trustees has resigned in protest claiming that the severance package is excessive. He is the third board member to resign in objection to the board’s pro-Ladner stance, claiming that they "put Ben Ladner before American University."
The board essentially forced Dr. Ladner to accept the package as the board decided last week to fire him “with cause” if he did not accept. Dr. Ladner is rumored to have requested a $6 million dollar package. In exchange for the deal, he also gives up the right to request any tenured position on the faculty of AU. The university is also providing $20,000 of moving expenses and giving him 90 days to vacate the university-owned house they live in.
The package was met with stringent opposition from factions within the university. AU’s deans released a statement condemning the settlement and “the closed process by which that decision was reached.” Many students protested around the campus by showing signs in opposition to the settlement in between classes.
The package will also provide for an additional $398,000 in taxable income that Dr. Ladner owes the IRS, and for the amount the school would have withheld on that income. In addition, Dr. Ladner will also not be required to provide the school with $134,000 in reimbursements for questionable expenses.
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