Is it legitimate, if you are a university president, to keep a chef? a chauffeur? a social secretary who works principally for your wife? Is it legitimate to send that chef on "professional development" trips to France, Italy, and Britain? Is it legitimate to bill your linens, electronic equipment, and vitamin supplements to the school? American University president Benjamin Ladner says yes. But the board of trustees says no. Its investigation into Ladner, which commenced over the summer, has become so interesting that the Justice Department is now watching it closely.

Ladner contends that extravagance at the university's expense was part of his job description (or, at least, was not specifically precluded by his job description). Between 2002 and 2004, he and his wife spent $81,662 on food; $67,877 on transportation; $37,408 on alcohol; and $13,987 on travel. These were their private, domestic expenses, unrelated to work. Ladner also reportedly spend $22,000--close to the cost of a year's tuition at American--on a first-class plane ticket to Nigeria. Ladner was placed on administrative leave last month. Right now it's looking like he will lose his job.

Margaret Soltan has for some time been all over the case, writing with characteristic bite and wit. Now the major papers are getting in on the act. See this morning's New York Times and Washington Post.

UPDATE 9/24/05: Ladner is trying to bargain his way back into the job with a check for $21,600, a willingness to pay additional taxes, and a readiness to accept a more modest contract.

I don't get it - I get a call from my company's accounting center if I spend more than $40 for dinner with a client. Heck, they even disputed a hotel bill for a training seminar that was arranged by the firm. How the heck did they not catch this ahead of time?

Dunno, George. I think there's something about university presidents. University of Tennessee went through some horrifying stuff with two successive presidents, IIRC, though I don't think it was quite as extreme.

yeah, i would guess this kind of thing is more common. i've seen similar things for local school board members--they're given their own vehicles (to go to and from work--not just for school "business") and other such extravagant benefits.

Nobody has mentioned that there was a FIRE case related to Ladner's expenses several years ago. An AU student, Ben Wetmore, was disciplined for taping a Tipper Gore speech at an AU venue, but it came out that he'd been a thorn in Ladner's side for having a web site that documented the luxurious lifestyle Ladner was living as President of AU. I never saw a resolution to the case at thefire.org, and I wonder if it was decided that the best thing to do would be for Wetmore to graduate and get out of Dodge. Wetmore now has a career as an activist. Bottom line here would be that Wetmore appears to have had the last laugh.

John:
It's even more salacious than you suggest. I reported on this story for the GW Hatchet when it broke last year...

Basically, Ladner had the University's General Counsel office working on shutting down BenLadner.com (Wetmore's website) -- effectively using university money to fight his personal battles. The website was well within its rights; Ladner just didn't like it and wanted it gone.

The bill, of course, went to AU -- $10,000 plus attorneys fees. Because Ladner, as we've seen, is incapable of paying for anything by himself.

As an AU alum, all I can say is that it geniunely surprises me this took as long to happen as it did. I graduated in 1998 and, believe me, absolutely everyone who wasn't willfully blind already knew Ladner was a slimeball. He's an absolute disgrace, and AU can forget about any money from me while he's still president (aside from the fact that my law school alma mater, Tulane, is in rather more need at the moment).

I suspect that once the Justice Department and the IRS get through with him, losing his job will be the least of Ben Ladner's concerns.

I have more to say on the Ben Wetmore issue and the AU alum's comment just above here.

for a little perspective, it's not uncommon for universities to provide a president’s or chancellor’s residence (the school holds the deed and the prez has to get his own house when he leaves or can buy it off the school) for official functions where, for example, you can serve booze (you can't on some campuses including our own), and for the university to provide catering. The president's wife (ooo institutionalized sexism!) is also expected to serve as hostess (or co-host) with the president and thus serve as an ambassador but likely cannot be paid or have an official title due to nepotism rules. Therefore, it's not unreasonable to ask for SOME support from the school for housing food and a stipend for the university’s “First Lady.” This, case however is excessive, but I can see how the luxury and its price, can creep into the big $.