A severance package that allows former Provost Larry Nielsen to continue to earn his  $298,700 yearly salary over the next six months while “he is preparing himself to resume his faculty responsibilities” has brought more scrutiny to Holladay Hall as the Board of Governors, Board of Trustees, and a State Representative are seeking to change the way these academic deals are struck.

BOT chairman asks for review of Nielsen package

Board of Trustees Chairman Bob Jordan has asked the University to review Nielsen’s contract due to public scrutiny of his severance package while the University is facing 18-percent budget cuts. The contract would continue to pay Nielsen at his provost salary while he is on study leave. Nielsen will teach one class beginning in January.

“This type of transition package is widely used in academia,” Jordan said, “but these are extraordinary budgetary times.  I am asking the chancellor to review the contract to ensure compliance with university policies, rules and regulations.”

Oblinger sweetened deal before Nielsen’s resignation went into effect

The University hastily called an emergency Board of Trustees conference call in Holladay Hall Sunday night, where the Board approved the release of personal documents in relation to the hiring and resignation of former provost Larry Nielsen.

The documents released were two letters addressed to Nielsen from former Chancellor James Oblinger. The letters showed Nielsen’s original severance package and how it was altered before his resignation in late May. 13, 2009 outlining “the transition of your salary in accordance with the terms of your initial appointment as provost” and a letter from Oblinger to Nielsen dated June 22, 2005 informing Nielsen he had been selected as permanent provost.

Oblinger told the News & Observer last week Nielsen would receive his provost salary until Nov. before it was reduced to that of a tenured professor. The documents show the package will actually step down Nielsen’s salary over the next three years.

Interim Provost Warwick Arden could not be reached for comment. Arden is in Australia until June 18.

N.C. Republican House leader aims to strike down “golden parachutes”

Rep. Paul Stam has drafted an amendment to Senate Bill 202 which would end what has become referred to as “golden parachutes” for high-ranking officials who resign from their posts.

A statement released Tuesday said the recent publicity of universities giving outgoing officials hefty severance packages is irresponsible as budget cuts threaten education.

“Recent revelations of pay retention for NCSU Provost Larry Nielson and now for Chancellor James Oblinger cannot stand as historically tight budgets for education and other essential human services go wanting,” the release reads.

Stam, the primary sponsor of the amendment, said tax dollars should be going toward education instead of into former administrator’s pockets.

“At a time when we are experiencing unprecedented reductions in state program spending, teachers and other employees are losing their jobs, and tuition for college students is being significantly increased, we cannot allow this irresponsible waste of taxpayers’ dollars to continue,” Stam said in a statement.

Sen. Phil Berger said the amendment would make it illegal for severance packages that continue to pay administrators at their administrative salaries while they remain on the faculty.

“It would be contrary to state law for there to be a severance package of that sort–a golden parachute is the generic term for it,” Berger said.

Berger said the recent controversies involving NCSU have brought these packages into light, but that there could be many others taxpayers have paid for and not known about.

“Apparently a practice exists wherein an administrator in the University system, if they lose their job–and it seems like for whatever reason the administrator has left the job–continues to receive his or her salary for a period of time,” Berger said. “And that just strikes us as wrong.”

Berger said severance packages are understandable, but that there should be regulation to protect taxpayers from paying former administrators higher salaries while they take on lower-paying jobs.

“I don’t think anybody would begrudge someone who loses their job having a two-week’s pay or something of that nature but what we’re seeing is that, for instance in the Oblinger circumstance, he was a tenured professor so once he resigned as chancellor he goes back to being a professor but the salary that he receives is his chancellor’s salary which is significantly higher than the professor salary,” Berger said. “The taxpayers are ending up on the hook for these things and most people don’t think that’s right.”