New Mexico AG Moves to Block $1.9M Severance Payment to WNMU President

New Mexico  – Attorney General Raúl Torrez filed an emergency motion in court on Monday, requesting a temporary restraining order to block a controversial $1.9 million severance package awarded to outgoing Western New Mexico University President Joseph Shepard. Torrez criticized the payment as an “egregious misuse of public funds” and a violation of the WNMU Board of Regents’ duty to act in the best interests of the university and its students.

Shepard resigned as president last month after a State Auditor’s Office investigation uncovered over $363,000 in wasteful spending and improper use of public funds. Torrez emphasized that the Board had the opportunity to negotiate a reasonable separation agreement but instead committed nearly $2 million of taxpayer money without proper justification.

The motion, filed in the 6th Judicial District Court, argues that the university’s agreement to pay Shepard three times the legally required severance amount—should his employment have been terminated without cause—is unjustified. The Board of Regents’ actions, Torrez argues, breach their fiduciary duty to the public and are contrary to the best interests of the university community.

The motion also underscores the urgency of halting the payment, citing the initial findings from the State Auditor’s Office. “The Board’s attempt to squander public funds meant for the benefit of WNMU students and surrounding communities must be stopped,” Torrez stated.

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On December 20, 2024, Western’s five-member Board of Regents unanimously approved the separation agreement, which grants Shepard a $1.9 million lump-sum severance payment by January 15, 2025, the date his resignation becomes effective. Additionally, Shepard is guaranteed a tenured professorship at Western’s School of Business, earning at least $200,000 annually for the next five years, along with an eight-month paid sabbatical.

Torrez’s motion argues that the Board’s actions violate public policy and breach their fiduciary duties, noting that no public discussion was held regarding other termination options. The motion also highlights that the Board did not explain why they agreed to pay Shepard far more than the legally required severance under his existing contract, which capped the payment at $597,760.50 in the case of termination without cause.

The Attorney General is asking the court to issue a temporary restraining order, preventing the Board from disbursing the severance payment until a full evidentiary hearing can be held. The motion notes that the state is not seeking a conclusive determination of waste or abuse of public funds at this time but is requesting that the court recognize potential breaches of fiduciary duties by the Board, which could result in the separation agreement or severance payment being voided or unenforceable.