Former University of Minnesota regent David McMillan will become the temporary leader of the Duluth campus, following a majority vote by the U's Board of Regents on Wednesday.
The board voted 9-2 to appoint him, after a lengthy, often aggrieved discussion that addressed conflict of interest concerns raised recently by regent Darrin Rosha, former Minnesota Gov. Arne Carlson and a national higher education accountability nonprofit.
The board approved a two-year contract for McMillan that offers a base salary of $250,000 each year, along with $25,000 annually for housing. Retiring UMD Chancellor Lendley Black's base salary this past year was about $316,000.
McMillan, who as regent represented Duluth and the surrounding region since 2011, resigned to apply to become UMD's interim chancellor after a $166,000 national search failed to produce a permanent choice.
A retired Minnesota Power executive and UMD graduate, McMillan was among six applicants for the interim post and the only one selected for an interview by the 18-member search committee. He said he was encouraged to apply by Duluth-based civic, business and higher education leaders.
But Rosha and Carlson have said both searches lacked transparency, and McMillan's role in approving U President Joan Gabel's recent contract increase lent the appearance of a conflict. Gabel recused herself from the interim chancellor decision and both she and McMillan have denied the allegation.
Nearly 40 Minnesota legislators signed a letter sent to the Board of Regents this week laying out similar concerns, asking the board to reject the McMillan recommendation and give a second look to the other candidates.
"We implore you to hold yourselves to the highest moral and ethical standards, avoiding what appears to be a significant and serious conflict of interest," reads the letter, signed at the top by House Minority Higher Education Lead Rep. Marion O'Neill, R-Maple Lake, and Senate President David Osmek, R-Mound.