MONTEVALLO, Ala. – The University of Montevallo Board of Trustees approved a change to outgoing University President John Stewart’s employment contract that will pay him $226,589.40 to part ways with UM.

That sum will be broken up into nine monthly payments of $25,176.60 from July 2025 through March 2026, according to Trustee Matt Arnold‘s presentation at the June 13 board meeting.

Additionally, Stewart will receive $10,000 to cover moving expenses to vacate the presidential residence, Flowerhill, no later than September 30, 2025.

The contract change is contingent on a definitive agreement that will be drafted by University counsel that detail UM’s separation from Stewart, who announced in May that he would be “stepping away” from his position this summer. Stewart’s retirement came in the wake of a significant budget shortfall that was discovered during the Spring 2025 semester.

Board chairman Todd Strange said he asked Sydney Frazier, who Strange said has served as UM counsel for 20 years and has extensive experience in employment law, to review Stewart’s employment contract.

“I find that the status of that employment agreement is in considerable controversy,” Frazier said during the meeting. “And the issues that are in controversy are, regrettably, those which may eminently result in litigation.”

The board then went into what was announced as a 30-minute executive session, which ended up lasting more than an hour.

Overall, this contract change will cost UM almost $300,000 when the additional employer-related costs – including retirement contributions, health insurance, and payroll taxes – are factored in, according to data shared by interim CFO Dr. DeAnna Smith during the board meeting.

During the afternoon session, the board approved the proposed contract changes with a 7-4 vote.

In addition to the financial payout, Stewart will be given the title of President Emeritus and Special Assistant.

Beginning July 1, Stewart’s duties will be to assist with fundraising for the UM Foundation and to advise the interim president and new president.

The board is currently working on the selection of an interim president.