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American University President Resigns
By Gwendolyn Bradley
Controversy erupted this fall at American University over the expenditures and severance package of president Benjamin Ladner, who left office in October after a board investigation questioned hundreds of thousands of dollars in personal and travel expenses.
The investigation, triggered by an anonymous tip, found that sums charged to the university over a three-year period included more than $5,000 for a garden-club lunch hosted by Ladner’s wife, $22,000 for a single first-class plane ticket to Nigeria, $44,000 for alcohol, and more than $100,000 for the services of a social secretary. Ladner, a former ethics professor who earned more than $600,000 a year as AU president, said that all the expenses were reasonable and work-related. The board concluded that he should reimburse the university $125,000 and add $398,000 to his taxable income for the three years investigated. It also uncovered the fact that Ladner, who was hired in 1994, had in 1997 negotiated a new agreement with the then-board chair which increased his compensation, including severance compensation. The investigation concluded that the 1997 agreement was invalid because it had not been approved by the full board.
The investigation split the AU board, with some members defending Ladner and others harshly criticizing him. Four board members, including the chair, resigned in the immediate aftermath of the investigation. To the outrage of many faculty, students, and administrators, the board awarded Ladner a severance package worth about $3.75 million. Several deans publicly condemned the severance deal, student leaders issued statements opposing it and mounted a letterwriting campaign asking Congress to intervene, and colleges and schools within AU passed resolutions criticizing the board. The U.S. Senate’s Finance Committee has also taken an interest in Ladner, requesting all documents related to his severance package and compensation and calling for an audit of all eleven years of his tenure.
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