Jan. 7—After accepting the resignations of the five-member Board of Regents at Western New Mexico University, Gov. Michelle Lujan Grisham said Tuesday that the board’s decision to award departing university President Joe Shepard a $1.9 million severance payment is “tone-deaf” and she wants to work with the Legislature to prevent similar packages from being awarded by public institutions.
“We must ensure that generous payouts no longer reward poor performance while maintaining our ability to attract qualified leaders,” the governor said in a statement.
Her comments come one day after New Mexico Attorney General Raúl Torrez filed an emergency temporary restraining order against the board to prevent the university from disbursing the severance payment to Shepard by Jan. 15, when he agreed to step down as president. A hearing before 6th District Court Judge Jarod Hofacket is scheduled for 3:30 p.m. Jan. 13, according to court records.
Lujan Grisham, who issued a letter on Dec. 31 urging all WNMU board members to resign, said on Tuesday her office is already reviewing candidates to “usher in a new era of accountability at the university.”
The board was previously comprised of Daniel Lopez, a former state cabinet secretary; Dal Moellenberg, a private attorney; Lydon Haviland, a nonprofit executive and Mary Hotvedt, the board’s chair who is also an adjunct professor, according to the university’s website. Hotvedt and Jones’ successors will take their positions as soon as they have been confirmed by the Senate, a news release from the governor’s office said. Successors to Haviland, Lopez and Moellenberg can take their positions upon appointment since they are filling vacancies.
Aside from approving Shepard’s contract, the board is also under investigation by multiple state agencies over what State Auditor Joe Maestas said was $360,000 in “wasteful spending” on lavish university foreign business trips and high-priced furniture for the president’s residence from 2018-23. The alleged spending, first discovered in December 2023, is said to involve board members, Shepard and his wife, ex-CIA Agent Valerie Plame. Shepard has denied wrongdoing, but said he would step down to avoid being a distraction to the university.
A previously scheduled board meeting Tuesday to discuss Shepard’s contract, his transition and the search for an interim president was abruptly canceled by the Shepard when a quorum could not be reached. Jones, whose term on the board ended Dec. 31, will stay on temporarily to fulfill his treasurer duties, which include university payroll.
Jack Crocker, provost and vice president of academic affairs, was expected to talk to the university about becoming interim president, according to a December news release, but on Tuesday WNMU spokesman Mario Sanchez said no such negotiations had occurred. Crocker, however, could still become interim president and stay in that role until a new board can appoint its choice for the role, Sanchez said.
State Sen. Siah Correa Hemphill, D-Silver City, whose term ends Jan. 21, said in an interview Tuesday that she was encouraged there is an opportunity to get new leadership at WNMU that will take the fiduciary responsibility and the needs of faculty, staff and students seriously. Correa Hemphill also said the state’s challenges and limited financial resources need to be taken into consideration when severance packages are approved.
Correa Hemphill’s husband, Jay Hemphill, a WNMU employee who filed state ethics complaints against Shepard in November, said on Tuesday he was nervous that certain board members whom he believed had not resigned would “be defiant” and meeting despite the governor’s letter. But he thought “it was a good thing” the board meeting ended with no action.
Jorge Romero-Habeych, assistant professor of economics in the School of Business who last week urged the Faculty Senate to vote no confidence in the board, said he attend Tuesday’s board meeting wondering if there would be “some shenanigans” from members. But he said not a lot of university employees he knows are optimistic the agreement will be nullified because several judges have recused themselves from Torrez’s case. Court filings show that there have been recusals, but a judge has since been assigned to the case.
“We’re still very focused on making sure (Shepard’s separation agreement) doesn’t happen so we’re going to to do whatever we can to keep it in the spotlight,” Romero-Habeych said.