Cal State University secretly paid departing execs millions

California State University secretly paid millions of dollars to outgoing campus presidents and top executives, in some cases keeping them on the payroll up to five years after leaving office.

Neither the chancellor nor trustees at the nation's largest public university system publicly disclosed the "transition pay," lucrative consulting contracts and tenured teaching positions, the San Francisco Chronicle reported Monday.

Chancellor Charles B. Reed said his office spent as much as $4 million over the past decade for "special assignments" and paid leave for former campus presidents and vice chancellors.

Reed said in a June 23 e-mail to trustees that none of the deals violated university public disclosure policies or those giving executive compensation authority to the governing Board of Trustees.

But some of the perquisites appeared to have been awarded without trustee approval. And in cases where the chancellor notified the chairmen of the board through private correspondence, there was no record of a public review.

Some trustees and faculty union representatives said they were outraged about the secret deals at a time of rising tuition and academic cutbacks.

Oops. I got the college wrong. It was Kent State, not toledo.

KSU pays for two presidents
Cartwright will assist successor, raise money as part of growing trend
By Carol Biliczky
Beacon Journal staff writer
President Lester Lefton's contract at Kent State
For the next year, taxpayers and students will be supporting two presidents at Kent State University.

As new President Lester Lefton gets used to running the eight-campus system of 34,000 students, retired President Carol Cartwright will be something of an ambassador.

Total yearly cost -- at least $620,000 for the two.

While there are no statistics, this trend has picked up momentum over the last decade, said Tim McDonough, spokesman for the American Council on Education.

``They're already popular with key alumni and donors,'' he said. ``They can open doors for the university, so it makes a lot of sense.''

While presidents of decades past faded away to writing or teaching, today's stay in the administrative loop by raising money, helping the university and lightening the load for the incoming president.

``Departures are timed around fundraising,'' said Paul Fain, a reporter who covers the college presidency for the Chronicle of Higher Education. ``If one president is leaving while a campaign is in progress, it can be damaging.''

At Miami University, retired President James Garland stayed on to raise money when David Hodge took over July 1.

Garland, who has moved to Santa Fe, N.M., will help raise $350 million in Miami's current capital campaign, Miami spokesman Richard Little said.

Garland and Hodge are drawing a yearly total of $625,000 in annual base salaries, plus any bonuses, deferred compensation or other financial incentives they may be eligible for.

At Ohio University, President Emeritus Robert Glidden signed a three-year contract to shoulder fundraising for his successor, Roderick McDavis.

There is no capital campaign in gear, but ``we have some large priorities'' that include raising $10 million for a new learning and research center, said Molly Tampke, OU's interim vice president for advancement.

``We hated to not take advantage of Bob's talent and the relationships he has built,'' she said.

McDavis' annual base salary is $294,665. Glidden is paid $83,333 a year under a three-year contract that began in March 2005, for a total of $250,000.

Valuable asset

In the case of Kent State, Cartwright was too valuable to lose, said outgoing KSU trustee chairman Doug Cowan.

``After 15 years (as president), she knows everybody,'' he said. ``She's been responsible for most of the private support we've gained over the last 15 years.''

He said there is no formal job description for Cartwright as ``president emeritus,'' but part of her job will be to help Lefton get used to his job.

She is conducting KSU business from her private home in Twin Lakes, as Lefton now inhabits the spacious corner office she once occupied on the second floor of the library.

She is receiving the $270,000 base salary she earned in her last year as president, is eligible for all employee benefits, and has use of her KSU car until its lease expires in November.

KSU will maintain her existing telephone, facsimile and computer support in her home and will reimburse her for work-related travel expenses and possibly for those of her spouse, G. Phillip Cartwright.

As for Lefton, he came to the campus from Tulane University in New Orleans on July 1 with the most generous salary and benefits package ever bestowed at Kent and arguably the most generous in Ohio.

In addition to his base salary of $350,000, he is eligible to earn a bonus of up to 20 percent of his base each year -- that is, $70,000 a year -- and will receive a $50,000 yearly housing allowance and $50,000 in deferred compensation annually.

After five years on the job, he will be eligible for a yearlong sabbatical paid at the base salary of his last year as president, plus health benefits. What that would be isn't spelled out in his contract.

But the education council's McDonough said many presidents are eager to take on a lighter load when they retire.

Post-retirement university assignments ``are often limited because the person who stepped down really does want to step down a notch,'' he said.

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