Fired University of Michigan Resident Receives Nearly $1 Million Severance Deal

by Scott McClallen

 

It started with the University of Michigan firing former president Mark Schlissel for a years-long relationship with a subordinate coworker deemed inappropriate. It ended with Schlissel receiving about $1 million in payouts.

UM granted Schlissel one year of leave starting May 1, 2022, with a salary of $463,000.

Schlissel, whose base pay was $927,000 before he was fired in January, emailed a subordinate a New Yorker article titled “Sexual Fantasies of Everyday New Yorkers.” In a Dec. 3. 2021 email, he told a subordinate, “You can give me a private briefing.”

settlement obtained by the Detroit News says Schlissel can return with full tenure and a $185,000-per-year salary.

The settlement includes:

  • UM will immediately vest contributions made in 2020 and 2021, totaling $300,000 to Schlissel’s pension.
  • UM will pay another $162,000 into Schlissel’s 403(b) retirement plan within 15 days of the signed settlement.
  • UM will waive the length of service requirement for post-retirement health insurance, so he’s eligible for a similar plan for retirees.
  • Schlissel will keep his UM-issued iPhone and iPad until he leaves the school’s employment.
  • The university has paid his moving costs from the president’s mansion.

In an April 6 letter, Schlissel apologized for “poor judgment.”

Yes, Every Kid

“The relationship was entirely consensual, was never physical, and did not involve the inappropriate spending of university resources,” Schlissel wrote to the Board. “But in a time when we have been trying to strengthen the bonds of trust at the university, it is particularly important that campus leaders avoid even an appearance of impropriety. I am also sorry for any disruption this has caused to the conduct of U-M’s important mission.”

UM had offered Schlissel a $10 million contract before he was fired. It’s unclear what services demand a salary exceeding the president of the United States, especially when taxpayers give billions to higher education despite fewer people going to college.

In fiscal year 2019-20, Michigan paid $2.1 billion, or 4% of the $58.5 billion budget to higher education and community colleges.

The perks Schlissel  lost include:

  • The title of president emeritus upon his retirement.
  • A $927,000 annual salary plus a $5,000 per-month housing stipend.
  • A sabbatical of up to 18 months at his $927,000 salary.
  • $2 million start-up fund for a research lab and an annual salary of at least $463,500 as long as he was teaching.
  • Two $300,000 pension payments to be made in 2023 and 2024.
  • $36,000 a year the university was planning to give him through at least July 1, 2030, a personal assistant’s salary and free campus parking.

Schlissel planned to leave in 2023.

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Scott McClallen is a staff writer covering Michigan and Minnesota for The Center Square. A graduate of Hillsdale College, his work has appeared on Forbes.com and FEE.org. Previously, he worked as a financial analyst at Pepsi.
Photo “Mark Schlissel” by Reagents of The University of Michigan / University of Michigan. CC BY-SA 1.0. Background Photo “University of Michigan Campus” by Jha4ceb. CC BY 2.0.

 

 

 

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