Michigan State’s Controversial Move: Ousted Business Dean Receives New Title and Lucrative Salary to Rebuild Relationships

EAST LANSING — Michigan State University recently announced that Sanjay Gupta, the former dean of the Eli Broad College of Business, will co-chair a new initiative called the “Green and White Council.” This announcement came just a day after Gupta ended a lawsuit against the university regarding his dismissal as dean.

MSU President Kevin Guskiewicz praised Gupta’s experience and noted that he has also received the title of dean emeritus. However, it remains unclear why the lawsuit was dropped so quickly before this significant announcement. Public records obtained through the Freedom of Information Act reveal a settlement that goes beyond just a title.

As part of the settlement, Gupta dropped all claims against MSU, while the university agreed to cover approximately $422,000 in legal fees, which includes $400,000 for his attorneys and around $22,000 for mediation costs. In his role as co-chair for the Green and White Council, Gupta will earn a salary of $640,000, which includes nearly $70,000 for this position. He has a five-year contract and may also receive an annual bonus of $75,000, subject to Guskiewicz’s approval of his performance.

Before his dismissal, Gupta held the position of dean for the business school for 15 years. He claimed he was pushed out in 2022 after being accused of not following mandatory reporting guidelines. As of July 2021, he was one of the highest-paid officials at MSU, earning $472,236.

The other co-chair of the Green and White Council is Matt Elliott, a former Bank of America executive and MSU alum, who will not receive any compensation for his role.

In February 2023, Gupta had filed a lawsuit claiming he was wrongfully terminated. He alleged that the university’s administration, specifically former interim President Teresa Woodruff, made false accusations against him to block his potential appointment as MSU’s next president.

Gupta faced accusations for failing to report an incident involving a faculty member at a student event. He argued that he didn’t report it because it had already been brought to the attention of the university’s Title IX office by other staff.

In April 2022, an investigation commissioned by the Board of Trustees found flaws in Woodruff’s reasoning for Gupta’s forced resignation. She had stated she didn’t require the president’s approval for her actions, which the investigation contradicted. Woodruff later became interim president for an extended period.

This settlement finally brought closure to the long-standing legal battle, allowing Gupta to step into his new role while moving past the tumultuous experiences from his time at MSU.