Chapman to receive more than $475,000 in deferred compensation
President Joseph Chapman will collect more than $475,000 in deferred compensation from the North Dakota State University Development Foundation.
Chapman will be paid $37,500 on Dec. 31, which is the compensation Chapman earned for July 1 through the end of the year, said Jim Miller, the foundation's executive director.
That amount is based on Chapman's Jan. 2 resignation date accepted by the state Board of Higher Education, Miller said.
Chapman's last day at NDSU was Monday.
Chapman did not receive a severance package, but he will be paid for the month of December. His annual salary this year was $338,000, plus a vehicle allowance of $11,000.
The NDSU Development Foundation began paying Chapman deferred compensation in 2002 when salaries for North Dakota college presidents were less competitive. Chapman could begin receiving the money after he left NDSU.
The package started at $30,000 a year and eventually increased to $150,000 a year. It decreased to $75,000 in 2008-09 when the board made president pay more competitive and limited what foundations could contribute.
By Jan. 15, Chapman will be paid the remainder of his deferred compensation, which is $440,000.
In all, Chapman will receive $552,500 from the foundation. He already was paid last year's $75,000 compensation because the foundation missed a filing deadline with the IRS.
Going forward, the foundation will not pay deferred compensation to presidents, Miller said.
The foundation decided this fall to discontinue that practice starting July 1, 2010, because the board has made president pay more competitive.
Chapman's wife, Gale, will receive her salary from the foundation through Dec. 31. Her annual salary was $50,000, so she will receive $25,000 for this half of the year.
The foundation's executive committee will discuss this month how to handle a president's discretionary fund that the foundation pays for, Miller said.
"There will be some significant changes," he said.
The committee also will discuss paying the president's spouse. Miller said he does not anticipate paying the spouse of an interim president.