Ex-PSU President's Severance Package Could Reach Millions
PITTSBURGH (KDKA) -- Sources close to the departure of Pennsylvania State University President Graham Spanier tell the KDKA investigators that a multi-million dollar severance agreement with Spanier is not yet worked out.
His salary is over $800,000 per year. That will continue to be paid for a period of time. The details are not worked out yet. His legal fees will be paid. Sources indicate he just hired a high-profile criminal defense lawyer.
Sources familiar with the agreement say it could run into the millions of dollars.
Sources say much of what is being worked out with Graham Spanier may be worked out as a private agreement outside the contract because the incidents of the past week happened so quickly along with Spanier leaving so abruptly.
"There was such a situation where the severance needed to transpire in a faster period of time than what the two parties may have planned," Phil DiLucente, an attorney, said. "Therefore there must be consideration, substantial consideration given if one party is to forego a time element of their contract."
DiLucente has worked out a number of severance agreements and says this one involves a lot of money.
"I am certain that there was most likely consideration of monetary value and it was probably quite substantial," he said.
Sources indicate that regardless of what happened this week, Spanier had a remarkable career at Penn State and he had to be compensated for it.
"The goodwill over previous years that the person may have brought," DiLucente said.
And in this case, attorneys say that will mean a lot of money – could be millions of dollars.
No comment tonight regarding the agreement with Spanier from attorneys representing the board of trustees.
The final agreement has not been worked out at this time.
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