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Student leader sees better uses for final bonus

Published November 7, 2008 at 5:21 p.m.
Updated November 7, 2008 at 11:53 p.m.

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Larry Penley

Larry Penley

A Colorado State University official said Friday it was "better for everybody" to let President Larry Penley leave with a $389,000 bonus, but a student leader said he's outraged by the settlement.

"It's better for the state, better for everybody, if he wants to move on - it was just kind of a mutual agreement," said CSU Governing Board Chairman Doug Jones.

But the deal angered some students and faculty members.

Student body President Taylor Smoot said he was "appalled" by the amount - and so was every student he's talked to.

"It looks fishy," Smoot said. "We're giving him $400,000 to leave?"

That amount could fund several faculty members, Smoot said.

Penley resigned Wednesday, saying he wanted to pursue other opportunities. His decision followed a closed-door session with the board on Monday.

Jones declined to discuss what was said in the closed session, but he implied the decision to leave was Penley's.

Penley has not returned calls since releasing a resignation letter Wednesday.

Jones said a severance package is not unusual.

"A guy's been there five-plus years - it's something that happens more times than not in the world of business or higher ed or wherever," he said.

The board has been aware for some time of dissatisfaction with Penley on campus. Students and faculty members said Penley was distant.

Smoot said Penley earlier this year instituted a "protocol" requiring student government members to communicate with a vice president, instead of with him. Previously, Penley and student government leaders had a regular monthly meeting.

Jones said board members were aware of the discontent, but hadn't sorted out which complaints were credible. "A lot of things were flying around," Jones said.

The board also knew many were unhappy with former Executive Vice President John Lincoln, who arrived at CSU from Arizona State University with Penley, Jones said.

Lincoln was in charge of athletics, public affairs and safety, but several campus sources said he also shielded Penley from others on campus.

Jones said board members believed Lincoln was stepping down from the $245,000-a-year job in October, only to learn that Penley had hired him as a consultant on a contract worth up to $10,000 a month.

"When we heard of a contract, it was a little bit surprising, stunning, shocking - whatever - to all of us, because it wasn't what was thought," Jones said.

Jones said the board had wanted Lincoln to go.

"We thought it appeared to be the proper thing for the good of the institution," Jones said.

Lincoln relinquished the contract Friday, one day after the school announced the matter had been turned over to the university attorney for review. CSU spokeswoman Michele McKinney said Lincoln had not received any payments under the contract.

Lincoln could not be reached for comment.

Jones said the board spoke with Penley behind closed doors in 2007 after a botched effort to win more state funding, but which instead ruffled feathers at the Capitol.

Penley had prevailed on a Fort Collins lawmaker to introduce an amendment to the annual state budget bill to increase the CSU appropriation.

That ran counter to an effort by state higher education officials and others to substitute a funding formula for the age-old practice in which lawmakers seek more money for schools in their districts. Penley was the only college president to defy the new system, and his amendment died on the Senate floor.

The incident resulted in "a little bit of a black eye for us," Jones said.

What's next

* In January, the Colorado State University governing board will discuss the next steps in replacing President Larry Penley.

* CSU does not have a written policy on how to conduct searches.

* Doug Jones, chairman of the CSU board, said members will want to hear from all groups on campus.Jones said he would like to see the next president continue Penley's efforts to improve undergraduate teaching and research.

Comments

  • November 7, 2008

    5:43 p.m.

    Suggest removal

    rkoehler writes:

    Penley was the worst President Colorado State University ever had. He should have been fired outright and not given a cent! The CSU Board of Governors should all immediately be replaced with ethical members.

  • November 7, 2008

    6:12 p.m.

    Suggest removal

    ifyem writes:

    CSU is run by idiots, plain and simple!!! As an alum, they better not ever ask me for a dime!!! Thank god they don't have my current address!!!

  • November 7, 2008

    6:21 p.m.

    Suggest removal

    gardog writes:

    If the regents(?) signed the guy for this separation bonus - give it to him. And then throw THEM out.

    How can you get a bonus for quitting?

  • November 7, 2008

    7:01 p.m.

    Suggest removal

    HopiMedicineMan writes:

    What a waste of two or three tuitions !

  • November 7, 2008

    7:21 p.m.

    Suggest removal

    roger44 writes:

    Then they wonder why the voters go against more funding for these types of BS deals.

  • November 7, 2008

    8:43 p.m.

    Suggest removal

    gr8fun4me writes:

    This is outrageous! The whole public education system is out of whack too. Another ripoff off of the taxpayer with cooperation of the Board of Regents. They should all be fired. The whole system is corrupt.

  • November 7, 2008

    10 p.m.

    Suggest removal

    analytixman writes:

    Our wonderful newly elected democrats will be crying for more money to help bail out higher education and quickly forget they just flushed $400,000. This was his decision to leave for other opportunities. Penley left on his own accord, we should not be paying him to leave. Typical tax and spend and ask for more. Hank Brown did not ask for a $400,000 out the door pay off when he left CU. Change my butt, nothing changes except for the clowns running the circus.

  • November 8, 2008

    8:16 a.m.

    Suggest removal

    Mike_In_Hartsel writes:

    How about some outcry against the "fees" charged students every year for such nonsense as "involuntary contributions" to "green" organizations and other such leftist tripe? These should not be part of the annual tuition.

  • November 9, 2008

    8:09 a.m.

    Suggest removal

    DenverTea writes:

    what makes me angry is the insurance students are forced to accept - after 10 credits and up students are charged $600 plus for insurance that is inadequate and often unjwanted and they are not given any choices of other carriers - somebody is getting kickback for that.

  • November 10, 2008

    1:58 p.m.

    Suggest removal

    fastnloose writes:

    They say there is no money in education! I would love to make 400,000 for doing a crappy job.

  • November 10, 2008

    11:50 p.m.

    Suggest removal

    fed_up writes:

    """"analytixman writes:

    Our wonderful newly elected democrats will be crying for more money to help bail out higher education and quickly forget they just flushed $400,000. This was his decision to leave for other opportunities. Penley left on his own accord, we should not be paying him to leave. Typical tax and spend and ask for more. Hank Brown did not ask for a $400,000 out the door pay off when he left CU. Change my butt, nothing changes except for the clowns running the circus."""""

    excuse me but what the hell does this have to do with the democrats???? Another lame attempt at bashing the dems in a story that has NOTHING to do with them jeez, get a life already.