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AP: Michigan State says proposed deal with general counsel being tweaked

Posted at 7:57 PM, Jun 20, 2018
and last updated 2018-06-20 21:08:13-04

UPDATED STORY:

A Michigan State University spokeswoman says a proposed contract with the school’s new general counsel in the wake of the Larry Nassar scandal is being tweaked to clarify that he wouldn’t be paid if he’s fired for cause.

Two people familiar with the situation said earlier Wednesday that the proposed contract for former state Supreme Court Chief Justice Robert Young would pay him nearly $1.3 million over three years, even if terminated early. The people spoke Wednesday to The Associated Press on condition of anonymity because the school had not announced the terms of his pending contract. It’s expected to be taken up Friday during the board of trustees’ next public meeting.

But the university spokeswoman said that wasn’t the intent. She said the “understanding and agreement” of both Young and interim President John Engler is that Young wouldn’t be paid if fired for cause.

Engler appointed Young in May to replace acting general counsel Kristine Zayko. Zayko came under criticism for not telling the board about a 2014 investigation of Nassar and complaints about a former dean who is now facing criminal charges.

EARLIER STORY:

LANSING, Mich. (AP) — Michigan State University’s new general counsel, appointed in the wake of the Larry Nassar sexual abuse scandal, would make nearly $1.3 million over three years even if he were let go before his contract ended.

Two people familiar with the situation disclosed the provision Wednesday to The Associated Press on the condition of anonymity because the school had not announced the terms of Robert Young’s pending employment contract. It is expected to be considered by the board of trustees at a public meeting Friday.

The officials said Young could qualify for a full payout even if he were fired for cause. In response to the AP’s reporting, university spokesman Emily Guerrant said the contract wording will be tweaked. While Young could be dismissed for any reason, he would only be denied pay if terminated for cause.

“If Bob Young was terminated for cause, he would not receive a payment for the remainder of the contract,” she said.

Engler named Young in May to replace acting general counsel Kristine Zayko, after Young helped negotiate a $500 million settlement with hundreds of women and girls who alleged sexual abuse at the hands of former campus sports doctor Larry Nassar. Zayko announced her intent to retire and return to private practice.

Engler had appointed Zayko, the university’s former deputy general counsel, in March after long-time general counsel Bob Noto announced his retirement in February. A month before Noto’s announcement, a trustee had called for his resignation amid the Nassar fallout.

Noto walked away with six months of his $403,100 annual salary and a $234,110 payment for 151 unused vacation days, according to the Detroit Free Press. Zayko later came under criticism from two trustees for not telling the eight-member board about a 2014 investigation of Nassar and complaints in 2005 about William Strampel, the former dean of the school’s College of Osteopathic Medicine who is now facing criminal charges.

Young, whom Engler appointed to the state Supreme Court when he was the state’s Republican governor and who served as a justice for 18 years, most recently was picked by Engler to coordinate multiple investigations and lawsuits against Michigan State.

Under the proposed three-year contract — which has not been released publicly — Young would make $425,000 a year plus benefits.

There is no such provision in the contract for Engler, who is facing pressure to resign after sending emails to another university official criticizing lawyers for Nassar’s sexual assault victims and suggesting the first woman to go public with her accusations was probably getting a “kickback” from her attorney. Engler could be terminated for cause, and the school would have no other obligation to him other than accrued salary.

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Lage reported from Ann Arbor, Mich.