American University Controversy

AU president says he will consider legal action if he's dismissed "with cause."

American University President Benjamin Ladner was suspended in August after the Board of Trustees began looking into his personal and travel expenses, an inquiry sparked by an anonymous letter sent to the board in March.

He was online Friday, Oct. 7, at 11 a.m. ET to discuss the controversy.

Ladner remains on suspension pending the outcome of the investigation into his and his wife's expenses by the board.

Ladner has acknowledged some missteps -- such as not immediately reimbursing the university for his son's 13-course engagement party dinner last year -- but rejected an independent report that questioned more than half a million dollars in spending in the past three years. He said most of the thousands of dollars that his wife charged to A.U. for household furnishings, food and beverages and that was questioned by the companies hired to do an audit was consistent with the terms of his contract.

A longtime executive assistant said he made no effort to separate his personal and business expenses and insisted on "the best room with the best view" in exclusive hotels, even giving her a guide to fine lodging worldwide, The Washington Post reported.

Trustee Paul Wolff said in an online discussion with washingtonpost.com on Monday that he believed that "it is in the university's best interest that he step down before the Oct. 10 board meeting."

A transcript follows.

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Dr. Benjamin Ladner: I appreciate the opportunity to respond to questions and charges that have been raised about my record at American University. I'm very proud of my record, but more importantly, it is a record that is shared with the entire AU community -- its students, faculty, staff and board members.

In my 12 years at AU, I know that the work is only as important as the challenging academic environment it creates for our students. Expanding our overseas locations, attracting foreign students, expanding university programs, and raising funds from an expanding list of donors are all designed to build a new and better AU.

Since arriving at AU in 1994, I have worked hard to raise the standard of academic excellence and to put our university on sound financial footing. With a team of talented administrators, we have seen the number of high achieving students seeking acceptance. Freshman GPA's have increased from an average of 3.2 to 3.55 while SAT score averages have risen 1133 to 1285. We have worked hard to increase AU's endowment from $29 million to $251 million and grown alumni giving from 6% to 20% annually.

Recent press reports based on leaked documents and anonymous sources have raised concerns about expenses I incurred in carrying out the duties of my office. Because of the recent leaks, it has become difficult to separate what's fact from what isn't. This morning I would like to provide answers to your questions.

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Cleveland Park, Washington, D.C.: What are your objections to adding one or two student trustees to AU's board of trustees? Some colleges and universities have been using the practice for years.

This would be especially important at an institution like AU since it is so dependent on tuition rather than an endowment (thanks in part to your failure to build an endowment of note). Student trustees would serve as another check on the university's budget.

Dr. Benjamin Ladner: I have not said I'm against it, but that it is something the Board would probably be willing to look at. Since coming to AU, I have expanded the "Campus Representatives" group that sits on Board committees and participates in the general session of the Board. This group now has three students, one faculty,one staff, and an alumnus. It would be a natural next step for the Board to discuss this question. There are several constituencies at AU in addition to students--staff, faculty, alumni, etc.--all of whom could make the same argument. Obviously, there would have to be some kind of balance in representation.

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Washington, D.C.: President Ladner,

How would you describe the ethical consciousness of the Board of Trustees? Thank you.

Dr. Benjamin Ladner: I appreciate your question, but I do not think it is appropriate for me to comment on the ethics of the board. This is for others to decide.

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Washington, D.C.: Dr. Ladner, last night on AUTV you said that you had extended invitations to the students, faculty, and staff of American University to talk about the situation. When were those made, who were they made to, and why are we only hearing about them now?

Dr. Benjamin Ladner: I offered to meet with groups of faculty, students, staff, and deans as early as last week. Several of these meetings were actually set up. Then on the day of the meetings, the lawyer for the executive committee notified me that the invitation from the faculty and deans had been withdrawn. For the meeting with students, I was never notified that the invitation had been withdrawn, so I showed up but was denied entry into the meeting.

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Washington, D.C.: The people on the board who are attacking you have really gotten the students and faculty upset, and yet only one side of the story has come out. What would you like to say to the students, faculty and AU alums?

Dr. Benjamin Ladner: The Board and I agreed at the outset that the process of inquiry would be confidential until all reports and information had been reviewed and discussed by the Board. Unfortunately, there has now been a series of anonymous leaks designed to present isolated data, out of context, that have not even been reviewed yet by the Board. I am confident that when all the facts are reviewed by the Board, the misleading information will be fully rebutted and there will be a positive outcome both for AU and for me. I still believe in the principle of "innocent until proven guilty," not the reverse.

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Arlington, Va.: Mr. Ladner:

I applaud your courage at participating in this discussion. I'm sure you will face some very unpleasant questions. My question involves compensation for university presidents in general. If a non-profit educational institution wants to hire talented individuals, they need to pay for them just like everyone else. I think if they doubled your salary and perks it still wouldn't be too much. Why do so many outside of education have a problem with paying university presidents on par with other professions in the for-profit sector?

Dr. Benjamin Ladner: The compensation of university presidents is not very well understood by the most people. In fact, most Boards, like AU's, spend a lot of time collecting data, comparing compensation at similar institutions, and evaluating performance. The simple fact is, whoever is AU's president, the general range of compensation will be similar, however the total is distributed among annual salary, benefits, etc. This is because the ranges have for years been tracked by outside consultants who have advised the Board on its decisions about my compensation. They have determined that the AU President's compensation "fits" within a range that is in line with other similar institutions with long-serving presidents.

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Silver Spring, Md.: Good morning, President Ladner.

Given the widespread media coverage, both locally and nationally, of the allegations of misspending, do you believe that a fair investigation can take place and that the outcome of such an exercise will be accepted by the wide AU community?

Thank you.

Dr. Benjamin Ladner: I hope so. Unfortunately, there have been two processes going on: one by the full Board, and the other, a one-sided campaign conducted through anonymous leaks and misinformation to the media. I have confidence in the judgment of the full Board.

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Washington, D.C.: I have read that it was the policy of your financial office to destroy receipts after only one year. Is this true? If so, why -- common practice is to keep receipts for five years.

Dr. Benjamin Ladner: This has been the policy of the finance office (not my own), which I have followed completely. One of the difficulties I have faced throughout the investigation is the requirement to produce receipts going back three years, which, because I complied with the finance office policy, have been destroyed. I agree that, going forward, this policy should be changed. This issue is one example of how the press coverage has failed to convey all the facts.

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New York: Dr. Ladner:

What do you think you've learned from this incident that would make you, if retained, a better president of AU? Would you do anything differently, whether in terms of compensation, communication with students and faculty, student discipline (in light of your own sense of injustice), or any other issue?

Dr. Benjamin Ladner: I've learned a great deal. Despite the fact that I average three months a year on the road raising money, setting up new programs, etc., I believe I can do a better job (and should have)communicating with the the campus. Although I have conducted Eagle Roundtable dinners with students, faculty and staff; held town meetings with the campus community; met with parents and alumni, attended campus events; taught a course; etc., I know there are ways in which I can be even more systematically available to the campus community. I'm certainly open to suggestions. I welcome an opportunity to engage in extended dialogue about the key principles that have been at issue throughout this process.

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Van Ness, Washington, D.C.: Do you consider your "missteps" minor or major lapses in judgment?

Dr. Benjamin Ladner: I do believe I have made mistakes, and I understand how the perception of the significance of these has been exaggerated in the media. In a few instances, I overlooked the fact that certain personal expenses were charged to the university. Because of my single-minded focus carrying out university business, I regret these accounting errors and have already reimbursed the university. In hindsight, I should have been more vigilant and precise. The amounts being leaked to the media are overblown and inaccurate, and will be shown to be wrong.

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Washington, D.C.: Why are you not answering questions about the specific allegations against you? You seem to be attacking the process but you are not disputing the facts that have been reported and affirmed by Trustees.

Dr. Benjamin Ladner: In fact, I do dispute the allegations and the exaggerated amounts leaked to the press. I have provided extensive rebuttals, which the press has not reported. Although a few individual trustees have accepted some of the leaks as true, it is interesting to note that a September 29 statement signed and released by a majority of the Board, noted that "Decisions on these matter cannot appropriately or legally be made by one or a small number of Board members." This statement was given to the press, but not reported fully.

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washingtonpost.com: Dr. Ladner, as producer of this discussion I must tell you that several readers are writing in criticizing you for not answering any of the hardball questions. If I may, I would like to ask you three questions: If asked by the Board of Trustees to step down, will you? Have you offered to pay back the university for any expenses deemed inappropriate? Would you take a pay cut?

Dr. Benjamin Ladner: I will not make any personal decision about continuing or stepping down until faced with the actual decision by the Board. I have not only offered but have actually submitted a check for the expenses for which I am responsible. As with all compensation decisions, it is the Board, not I, who decides what my compensation will be.

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Dr. Benjamin Ladner: Thank you for your questions. I realize the limitations of trying to respond to so many questions. Clearly, there are vital issues at stake, not only about me and my leadership, but also about the nature of dialogue, openness, and fairness within the university. I am eager to bring this process to a close, and believe the full Board will arrive at a positive outcome in light of all the facts.

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Editor's Note: Washingtonpost.com moderators retain editorial control over Live Online discussions and choose the most relevant questions for guests and hosts; guests and hosts can decline to answer questions.