California State University, Castro reach settlement following resignation. Here’s how much
The California State University system and former chancellor Joseph I. Castro have signed a settlement agreement following his resignation last month while under fire for his handling of sexual harassment allegations while president at Fresno State.
Castro, according to the agreement, entered the CSU executive transition program on Feb. 18 for a period of one year and was reassigned into the CSU Management Personnel Plan. In the MPP, Castro has been classified as an advisor to the board with an annual salary of $401,364, monthly payments of $33,447. That salary will be paid by the chancellor’s office on behalf of the CSU board of trustees, and ends Feb. 17, 2023.
The CSU for six months will continue to pay a housing allowance of $95,004 annually or $7,917 per month that was detailed in his 2020 appointment letter with the final payment in August.
Castro also retained retreat rights following the transition year as a tenured professor of leadership and public policy at the Orfaela College of Business at Cal Poly San Luis Obispo. If he exercises those rights, the CSU will reimburse moving expenses. Cal Poly San Luis Obispo would be responsible for all costs associated with that appointment, and if Castro wants to move his retreat rights to a different CSU campus he must negotiate that with the campus seeking his appointment, according to the settlement.
Castro has not yet informed Cal Poly San Luis Obispo of a decision, according to a CSU spokesman.
Under terms of the settlement agreement, Castro has agreed to voluntarily participate and fully cooperate in any investigations, depositions, hearings, trials or other legal or administrative proceedings related to his role as CSU chancellor or as Fresno State president.
The CSU board of trustees on Tuesday initiated an independent and external investigation to review how Fresno State administrators responded to reports of sexual harassment by Frank Lamas, who served under Castro for six years as vice president for student affairs.
A sudden end for former CSU chancellor
The former CSU chancellor and Fresno State president voluntarily resigned on Feb. 17 with a simple sentence to Evelyn Nazario, the CSU vice chancellor for human resources. “I hereby resign my position as Chancellor of the California State University, effective at the close of business on February, 17, 2022,” he wrote.
It was a sudden end for Castro, who was appointed CSU chancellor on Sept. 21, 2020.
But condemnation and calls for his resignation grew steadily following a USA Today report that detailed how Castro handled sexual harassment allegations against Lamas while at Fresno State. The former Fresno State president never formally disciplined Lamas, but provided personal counsel, brought in a trainer and despite the allegations continued to give positive performance evaluations and annual merit pay increases.
When Lamas retired, he received a $260,000 settlement and a letter of recommendation toward future employment. Lamas has denied the allegations against him.
“I have been honored to serve the California State University for more than eight years, including as its eighth chancellor, and the decision to resign is the most difficult of my professional life,” Castro said, in a statement through the CSU chancellor’s office when resigning. “While I disagree with many aspects of recent media reports and the ensuing commentary, it has become clear to me that resigning at this time is necessary so that the CSU can maintain its focus squarely on its educational mission and the impactful work yet to be done.”
This story was originally published March 4, 2022 at 12:08 PM with the headline "California State University, Castro reach settlement following resignation. Here’s how much."