Controversy erupts as WNMU pays $1.9m buyout to outgoing president despite state’s legal effort to block it

A significant legal and financial controversy has erupted in New Mexico following

Western New Mexico University

’s (WNMU) payment of a $1.9 million buyout to its outgoing president, Joseph Shepard. The payment was made despite ongoing legal efforts by the state’s Attorney General to block it, citing concerns over the misuse of public funds.
The buyout was processed on January 2, just days before

New Mexico Attorney General

Raúl Torrez filed a court motion seeking to halt the transaction. Torrez’s office learned of the payment only on January 7, when it had already been completed. According to Torrez, the university’s legal counsel failed to notify the state in time, leaving the Department of Justice in the dark until it was too late.
State’s legal challenge
The state’s legal efforts to block the buyout come amidst growing concerns over Shepard’s tenure at WNMU. As reported by the Santa Fe New Mexican, the outgoing president’s resignation followed an investigation by the State Auditor’s Office, which uncovered over $363,000 in questionable spending, including lavish international trips. Torrez has called for the separation agreement to be overturned, arguing that such a hefty payout undermines the public trust.

WNMU’s board of regents, however, has defended the buyout, insisting that it was processed in accordance with Shepard’s contract. “The payment process was entirely above board,” said Shepard’s attorney. Despite the legal pushback, the buyout stands as part of Shepard’s separation agreement, which also guarantees him a $200,000 annual salary for a professorship in the university’s School of Business.
Public outcry over spending
The payout has drawn sharp criticism from both state officials and the public, with many questioning the use of taxpayer money for such an extravagant deal. As quoted by the Santa Fe New Mexican, Torrez expressed frustration over the university’s failure to cooperate during the investigation, especially during the holiday break, when requests for records were repeatedly met with the response that “everyone’s on break.”
The controversy surrounding the $1.9 million buyout is likely to intensify as legal proceedings unfold and further details of the university’s financial practices come to light.