Hardin resigns

The University of Central Arkansas entered a "period of healing" Thursday upon the announcement of resignation from UCA President Lu Hardin.

In a special meeting Thursday, the UCA Board of Trustees accepted Hardin's resignation, a decision the president said he made with both his health and the wellness of the university in mind.

"It is with deep personal regret, but also with great pride for all we have accomplished together, that I announce I will be stepping aside as president of the University of Central Arkansas, effective Sept. 16, 2008, the sixth anniversary of being named UCA's eighth president," Hardin read from his letter of resignation.

After an executive session, the board voted 5-1 to accept Hardin's resignation and buy out his contract, with Dr. Michael Stanton voicing the only vote against the motion. Dr. Harold Chakales was absent from the meeting.

Hardin recently underwent surgery to treat the malignant melanoma behind his right eye and, at the urging of his physician, said he has decided to focus his time on recuperation. He said he made the final decision 48 hours before Thursday's meeting.

"It is a very serious condition and I absolutely must make health my priority," Hardin said.

The president said a period of healing is also necessary for the university as well, as Hardin's resignation coincides with a public controversy that has surrounded him since May. The controversy began with a privately approved $300,000 bonus and was heightened by the discovery that a memo in favor of the bonus, and attributed to three vice presidents, was written by Hardin himself.

Hardin has since returned the money and publicly apologized for what he calls an "uncharacteristic mishandling" on his part.

Although Hardin said the controversy is not the main reason he is ending his run as president with four years left on his contract, he said no decision is made for only one reason.

"The primary reason I submitted my letter of resignation is on my physician's advice and Mary's and my realization that I have to recuperate," Hardin said. "Secondly, as I heal personally, hopefully this will allow the University of Central Arkansas to go through a similar and simultaneous healing process."

As to what Hardin would do about the brewing controversy if his health were not a concern, he said he honestly does not know.

"My past would tell me no, let's work through this, even though it would be a difficult six months and a difficult school year," Hardin said after the meeting.

Hardin said his recent surgery, which was the second of its kind for him, will hopefully shrink the two tumors and he will be able to re-enter the workforce, most likely in the field of education.

Although Hardin said he was confident in his decision, several members of the Board of Trustees voiced their opposition to his resignation.

Randy Sims, board chairman, said the board was "absolutely saddened" by Hardin's decision and said he had offered the president several opportunities to keep his position.

"I've done everything I could think of to talk him out of it," Sims said during the meeting. "I think and I knew we could have stayed together and weathered the storms we've been going through to make this work."

Although Sims said he hated to see Hardin's presidency come to an end, he knew the decision would be the best option for Hardin; however, he said it is not the best option for the university.

"I can't say enough about what you've done for the university, the testimony you've given as a leader and the lessons you've given in how to take a university to a higher level of performance," Sims said.

After the meeting, board member Rush Harding III said when the board first interviewed Hardin for the presidency, he told the board he could raise UCA's enrollment to 10,000 and push the endowment to $20 million.

Harding said Hardin has gone above and beyond those goals, as the fall 2008 semester set a record enrollment of more than 13,000 and the university holds an endowment of more than $30 million.

"I'm in awe of what he and his team have been able to do," Hardin said. "I've always been a big dreamer, but what I love about Lu Hardin is he makes big dreams come true."

Board grants hardin compensation

Before taking the vote to accept Hardin's resignation, Sims outlined the terms to grant Hardin a sabbatical for the balance of this fiscal year.

Sims said as of July 1, 2009, a balance of $670,162.35 will remain on the public portion of the president's contract, which will be paid to him from the Board of Trustees Endowment Fund in either a lump sum or over the remaining 39 months.

The primary source of this fund comes from excess profits generated by the campus book store and food service. The $300,000 in deferred compensation the board privately approved for Hardin in a May 2 executive session came out of this fund. Hardin has since paid back that money.

Hardin also has a private portion of his contract of $47,570 annually that decreases each year. Sims said the UCA Foundation has agreed to fund the current year's private portion of Hardin's salary.

Harding also confirmed that with Hardin's resignation, the $300,000 deferred-compensation package that was due to him in 2010 disappeared.

The president's compensation for the balance of this sabbatical year is already funded in the 2008-09 budget and will not impact the current budget in any way, according to a statement from the board.

Although board member Scott Roussel told the president he could not believe his decision, he moved to accept the terms of Hardin's resignation and compensation plan. Board member Kay Hinkle seconded the motion and the vote was 5-1 with Stanton voting against it.

Courtway named

interim president

The Board of Trustees also unanimously approved a motion, provided by Stanton, to name UCA's general counsel Tom Courtway interim president. His term will begin Sept. 17.

Courtway, 55, has worked for the university since 2002, served for six months as the interim director of the Arkansas Department of Education and spent time at Hendrix College working on The Village.

"My role is to be the interim president and work with an excellent team of staff ... to go and educate the young men and women who choose to go to school here," Courtway said after the meeting.

Courtway, who said he learned of his appointment just minutes before it was announced, said he has no intentions of seeking the presidency permanently.

He also said he is not asking for compensation for the temporary role in addition to his annual salary of about $130,000.

"We have not discussed my pay as interim president," Courtway said. "I am not under written contract today at UCA. I am an at-will employee of UCA."

Hardin, who served on the legislature with Courtway, said the board's decision in naming an interim president was a great one.

Community reaction

After the meeting Thursday, UCA Alumni Association member Harold Helton of Conway said Hardin's announcement was an unfortunate one.

"Lu Hardin has done a lot for the institution and the city of Conway," Helton said. "We all make mistakes. He made a mistake. Now he wants to move on and we've got to move on at UCA. I think we can take what happened and make this a better institution. I hope Lu stays in Conway and continues to make it a better place to live."

Bill Plummer of Conway, former president of the Alumni Association said, "I'm just sick. It just hurts badly. He (Lu Hardin) was a great supporter of the Alumni Association. When I was president, you couldn't have asked for anyone better to work with."

Plummer also said he was thrilled Courtway accepted the position of interim president.

Brad Teague, UCA athletic director, said, "It's a sad day for me. We had a great working relationship and I'll miss him."

Terri Conder, former UCA basketball All-American and UCA and Arkansas Sports Hall of Famer, said "The way the whole situation unfolded, he (Hardin) made the right decision, the best decision for the university."

Sen. Gilbert Baker also issued a statement following Hardin's announcement Thursday.

"The University of Central Arkansas as an institution is an incredibly important part of the fabric of Conway and the state," Baker said. "We all need to pull together and help move the school forward for the good of the students. Lu Hardin did some great things for UCA, Conway and higher education statewide. He, Mary and the family need and deserve our prayers during this difficult time as they fight cancer."

Hardin has served as both a tenured professor and director of the state department of higher education and said his entire life has revolved around higher education.

"For a quarter of a century, my life has been higher education," Hardin said. "However, the love of my life, other than my children and my wife, has been leading this extraordinary university. The University of Central Arkansas is just special."

(Staff writer David McCollum contributed to this report.)