Shaw U.’s President Leaves Amid Debt Concerns

Citing tight finances and $20-million in debt, the Board of Trustees of Shaw University has announced a mutual split with Clarence G. Newsome, the university’s president since 2003. The historically black university, located in North Carolina, has been struggling with layoffs, pay cuts, and suspended retirement benefits.

Willie E. Gary, the board’s chairman, said the agreement with Mr. Newsome was reached last Friday, according to a video of today’s board meeting that was posted on WRAL.com. Each of the university’s 40 trustees has pledged a gift of $50,000, he said, and more is needed.

“Now it’s debt-paying time,” Mr. Gary said. “We’re going to get into the cost-cutting business. We’ve got to cut out the waste.”

Mr. Newsome, who was previously dean of the Howard University School of Divinity, will take a one-year sabbatical and will not return to the university.