Post-Presidency Benefits at Michigan State

Critics scrutinize post-employment benefits, but Simon's case could be another piece of a long-unfolding discussion about the college president as CEO.

Lou Anna Simon could have the option of collecting her full presidential salary for two years, plus perks, after resigning as president of Michigan State University in the wake of the Larry Nassar sexual abuse scandal.

Simon’s employment contract gives her the option of returning to the faculty after she steps down as university president. She would be entitled to a one-year research leave, in which she would be paid her full presidential base salary of $750,000. After returning to the faculty, she would then be paid another year at her full presidential salary.

Thereafter, her pay would dip to 75 percent of her presidential base salary, or about $563,000. It would be subject to annual review, salary increases and fringe benefits, according to her employment contract.

Simon announced late Wednesday that she was resigning from Michigan State after she faced fierce criticism for the university’s handling of the Nassar scandal. In herresignation letter, she apologized to victims and said she loves Michigan State.

“As tragedies are politicized, blame is inevitable,” Simon wrote. “As president, it is only natural that I am the focus of this anger. I understand, and that is why I have limited my personal statements. Throughout my career, I have worked very hard to put Team MSU first. Throughout my career, I have consistently and persistently spoken and worked on behalf of Team MSU. I have tried to make it not about me. I urge those who have supported my work to understand that I cannot make it about me now. Therefore, I am tendering my resignation as president according to the terms of my employment agreement.”

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