Administrative Corruption, Part 5: The President
By Professor Doom
The guy at the top of the institution, the
president/chancellor/master of all, is in a unique position to be highly
corrupt. Since “potential for corruption” means “corruption” in a discipline,
Administration, that knows nothing else, it’s almost too easy to target these
guys, but I’m going to have a lazy afternoon and hit a highlight.
Although it’s only famous in certain
circles, American University is a reasonably old institution in a great
location for an industry that benefits so much from politics: the District of
Columbia. It stays small, enrolling only about 1500 students each year. Despite
that, President Ladner lived large, very large; if his lifestyle was a gangsta,
it’d use the Hope Diamond as a bit of bling on its nose.
As is so often the case, it takes years of
blatantly inappropriate behavior before it finally sinks into the
Educationism-addled brains of administrators that something must be wrong…an
“anonymous letter” somehow made it to the trustees, indicating that they should
probably look into their president’s expenditures.
Granted, Ladner had a lower hurdle to
cross to be better than the previous president, who had a habit
of making obscene phone calls (again, it’s problematic when looking at the
inappropriate behavior of presidents, as it’s hard to figure out where to
start). First, the university needed to buy him a new $1.45 million off campus mansion
home--the “old” one on-campus was nearly 30 years old, after all—and spend
another half million renovating it to Ladner’s high standards. The new palace
was off campus, however, so the new president was less inclined to offer
university-related functions (at least, those pertaining to students and
faculty) there. Naturally, the trustees gave him money for a limo and driver to
offset the hardship of commuting from the palace to, well, the institution that
apparently existed for the purpose of maintaining the palace.
His house also got a staff, including a
personal chef, paid for by the institution, a nice travel budget and, unlike
“normal” faculty, he received an immediate tenure and rank of professor (this
problem, where tenure is now something just for administrators to award to
administrators, has come
up before). His salary, of course, was phenomenal, with regular, huge pay
raises (well over 20% in many years), closing in on a million a year for a
campus with 11,000 or so students—basically every student chipped in $100 a
year to support his lifestyle. I wonder if students had a choice about spending
tuition money in this way, if they would do it. Meanwhile, faculty keep getting
told there’s no money for raises…
The palace, the personal servants, the
travel budget, even the huge salary, just wasn’t enough. Ladner’s wife also got
a car and a university expense account. The couple took first class trips to
Europe, sending the bills to the university (to give some idea of how they
lived, the food bill for a 2 day trip to Rome was over $1200). There were also
trips to Africa, first class all the way, and staying at elite hotels. Even
trips to the hairdresser required the limo.
Again, it took years before the board
noticed. They received an anonymous letter about the expenses, and punished
Ladner severely: his 2003 pay raise was only a lousy 3% (again, far more than
faculty get, I recently struggled and failed for 2 straight years to get a 1.8%
pay raise despite exceptional evaluations, the only raise I would have gotten
in 6 years, but I digress…). Ladner complained bitterly, responding that the
board should at least give him a few extra hundred thousand in cash bonuses; to
their immense credit (for a board), they refused.
The very minor disciplinary action of a
small pay raise (which would count as gushing praise for a faculty member,
perhaps as a reward for curing cancer, or winning a Nobel prize…I would be so
grateful for such disciplinary action) didn’t deter Ladner, who afterwards had
the university pay for a 13 course engagement dinner for his son. The trustees
examined Ladner’s expenses further, and the full extent of Ladner’s
extravagance became known.
Somehow, the board was split as to whether
to fire Ladner. Seriously, some folks saw the expenses as legitimate, others as
excessive…there wasn’t enough to fire him. A whistleblower gave the expense
report to a local paper, and Ladner became just too much of a liability.
Finally, they let him go, giving him a lousy, crappy, $3,750,000 severance
package. It still wasn’t enough, and they had to pay an extra $18,000 to help
him move out of the palace.
I wish I didn’t have to keep saying “I
can’t make this stuff up.”
I again remind the reader of the theme
here: it really takes years of blatantly inappropriate behavior before the
corruption has any real chance of being caught. It doesn’t matter whether if
that behavior is extravagant spending, or sodomizing children, it
will take a very long time before anything is done, and ultimately one cannot
count on administrators to do the right thing unless they have no other choice
in the matter. Absolutely, positively, no other choice.
I remember taking multivariate calculus as
an undergraduate. Long after I’d grasped the material, the professor would call
out “Let’s do another one” and then work another example of the concept at
hand. I learned to dread hearing that phrase, but, nonetheless, perhaps it’s
not clear what’s going on in higher education. So, guess I should dig up
another example…might take a few minutes.
Let’s do another one! Next time, I
promise.
You certainly can't make this stuff up. I've heard of situations like that at 2 institutions I'm quite familiar with.
ReplyDeleteAt my alma mater, the current president has a house that costs nearly a million dollars the use of the on-campus presidential residence having been abolished by one of her predecessors. At the same time, she's pulling in an annual salary of about the same amount.
Meanwhile, she's managed to get all sorts of money for putting up new buildings which, of course, bear the name of the benefactors that financed them. At the same time, tuition keeps going up for the students and the alumni are hassled for donations each year.
While I was teaching, I served under 2 presidents. There were persistent rumours about the first one arranging for some nice perks for his wife. The apparent justification was that her assistance was vital in helping him get funding and maintaining political connections.
The second president was also suspect. Shortly before I quit, I heard an unconfirmed story that he got a nice cushy job for one of his in-laws. That person allegedly sat on his backside all day and did nothing, getting nicely paid for it.
I get some very strange looks when I tell people that the place I used to teach at was the most corrupt employer I ever worked for.