New Mexico Attorney General Raúl Torrez has filed an emergency court motion seeking to block a $1.9 million severance payment to Joseph Shepard, the former president of Western New Mexico University (WNMU). The motion, filed on January 6, claims that the payment constitutes a misuse of public funds and breaches the Board of Regents’ responsibility to act in the best interests of the university. Shepard, who resigned as president last month after an audit revealed over $363,000 in improper spending, was offered the payout despite the financial concerns. As quoted by the Santa Fe New Mexican, Torrez condemned the action, calling it an “egregious misuse of public funds.”
Excessive Payment Questioned
Torrez’s motion emphasizes that the $1.9 million payout is more than three times what Shepard would have been entitled to if his employment had been terminated without cause, which is the legal minimum under his contract. The contract would have required WNMU to pay Shepard approximately $597,000, a sum much smaller than the amount agreed upon by the board. As reported by the Santa Fe New Mexican, Torrez argued that the Board of Regents violated their fiduciary duties by approving the excessive payment “without justification or consideration of the public good.” The motion further asserts that the board failed to explore other options available for terminating Shepard’s contract, including resignation or termination for cause.
Details of Shepard’s Separation Agreement
The separation agreement not only includes the $1.9 million severance payment but also offers Shepard a tenured faculty position at WNMU’s School of Business, with a salary of at least $200,000 annually for five years. Additionally, Shepard was granted an eight-month sabbatical with full pay. These terms were unanimously approved by the WNMU Board of Regents in a special meeting held on December 20. Despite ongoing audits into Shepard’s spending, the board chose to move forward with the agreement, raising further questions about the decision-making process.
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Torrez’s motion is asking the court to issue a temporary restraining order to halt the payout until a full evidentiary hearing can be held. The state’s Department of Justice has argued that the agreement and the severance payment may be unenforceable due to potential violations of public policy, a lack of legitimate consideration, and breach of fiduciary duty. The court’s decision on the motion is awaited, and the case continues to unfold.
