At the very least, the extra $950,000 seems unwise under these unpleasant circumstances. Mr. Ladner certainly made contributions to American University: The endowment grew dramatically, as did the qualifications of the student body. But Mr. Ladner has already been compensated generously for his efforts, and his own actions and sense of entitlement were the primary cause of the current mess.

The board ought to reconsider. Then it has to figure out how to heal itself. Its auditing and oversight efforts failed the university; they must be improved. The next president probably shouldn't serve on the board and surely shouldn't be as dominant as Mr. Ladner was in selecting trustees. The mechanism for selecting board members is insular and self-perpetuating. It should be changed.