The Texas A&M University System provided a $3.5 million separation payment to former President Mark A. Welsh III following his resignation in September amid a campus controversy. This payout is the latest in a series of costly leadership challenges for the prominent public university.
Welsh stepped down on September 19, 2025, after a turbulent period involving a secretly recorded classroom discussion on gender identity that drew criticism from state political figures. Details of the separation agreement were obtained through a public records request, revealing the significant financial terms of his departure.
Key Takeaways
- Former Texas A&M President Mark A. Welsh III received a $3.5 million payout after his resignation.
- His departure followed a controversy over a classroom discussion on gender identity and subsequent political pressure.
- Internal communications suggest disagreement among university leadership regarding the full payout of his contract.
- This event follows other expensive settlements, including a $1 million payment to a professor and a $75 million football coach buyout.
Details of the Separation Agreement
The separation agreement, approved by the Board of Regents on September 26, 2025, secured the substantial payment for Welsh. He had been appointed president in 2023 with a contract extending through December 2028. At an annual salary of $1.1 million, he had more than three years remaining on his term.
In addition to his base salary, Welsh's contract included a $150,000 annual housing allowance and eligibility for a $150,000 retention bonus on each anniversary of his employment. The final $3.5 million figure appears to reflect a negotiated settlement of the remaining value of this comprehensive compensation package.
The agreement also contains a non-disparagement clause, which prevents Welsh from discussing the payout or making negative comments about the university. When contacted for this story, Welsh declined to comment, citing the terms of the agreement.
A Pattern of Costly Exits
The payment to Welsh is not an isolated incident for Texas A&M. The university has faced significant financial and reputational costs from leadership and personnel issues over the past few years, raising questions about governance and stability.
Internal Tensions Revealed
Communications obtained through the records request shed light on the tense atmosphere preceding Welsh's resignation. In an email sent on September 17, just two days before he stepped down, Welsh indicated there was disagreement among the university system's leadership about paying out his full contract.
Welsh wrote to Chancellor Glenn Hegar and Executive Vice Chancellor Susan Ballabina, suggesting that Board of Regents Chair Robert Albritton had supported a full payout. Welsh quoted Albritton as saying, “Mark, I'm so tired of this bullshit … You gotta trust me that I'm gonna push to get you paid that full contract.”
“This is the reason I was a little surprised when you told me they didn't support the 5-year payout,” Welsh wrote in the email, highlighting a disconnect between the board chair's sentiment and the position of other administrators. He concluded the message by noting that “trust has gone out the window on my side of all this.”
This correspondence suggests that the decision to provide the full payment was a point of contention within the university's highest levels of leadership during a period of intense public scrutiny.
The Controversy Leading to Resignation
Welsh's departure was triggered by the fallout from a viral video that emerged on September 8, 2025. The video was a secret recording of a classroom discussion about gender identity issues. Its circulation prompted swift and strong criticism from conservative lawmakers, including Lt. Gov. Dan Patrick.
Initially, Welsh resisted calls to fire the professor involved in the discussion. However, as political pressure mounted, he ultimately terminated the professor and also demoted the dean and department head associated with the course. This series of events culminated in his own resignation just weeks later.
Texas A&M's Recent High-Profile Payouts
- $75 Million+: Buyout for head football coach Jimbo Fisher in November 2023, the largest in college sports history.
- $3.5 Million: Separation payment for President Mark A. Welsh III in September 2025.
- $1 Million: Settlement with journalism professor Kathleen McElroy in August 2023 after a job offer was altered amid political criticism.
A Troubled Year for University Leadership
Welsh himself was brought in to stabilize the university after the resignation of his predecessor, M. Katherine Banks, in the summer of 2023. Banks's departure was linked to the mishandling of a job offer to Dr. Kathleen McElroy, a journalism professor whose hiring faced backlash from conservative groups over her past work in diversity and inclusion.
The university ultimately paid McElroy a $1 million settlement after watering down her initial offer for a tenured position. The incident damaged the university's reputation and led to Banks stepping down.
Just months after Welsh took the helm, another major financial decision made headlines. In November 2023, the university agreed to a record-breaking buyout of more than $75 million for its head football coach, Jimbo Fisher. These successive, multi-million-dollar payouts have placed the university's financial management and administrative stability under a microscope.
The series of events highlights ongoing challenges at Texas A&M as it navigates the complex intersection of academia, politics, and public perception. The repeated instances of costly leadership changes continue to raise concerns among faculty, students, and taxpayers about the institution's direction and governance.
