Ashley Miller

Updated 10 p.m. Saturday

University President Michael Rao said he may “redouble” his efforts to lobby for funding in Lansing and keep the planned medical school on the right track before he moves south to take the helm of Virgina Commonwealth University in June.

“Tremendous progress has been made with the medical school,” Rao said during a conference call with reporters on Saturday.

“Much of what remains is the relationship in the last two years that students have in their clinical rotations,” he said. “I fully intend to pursue that and bring the affiliations agreements to closure.”

Those agreements with hospitals in Mid-Michigan, particularly in Saginaw, would host students in their fourth and fifth year of training.

Rao said Central Michigan University hopes to enroll students in medical courses on campus by 2011. He said the basic science course groundwork is already laid.

He is also committed to the $100,000 donation he made to the medical school in December, he said. Slightly more than $300,000 in donations has been committed to the project so far.

Rao said the current design of the medical school curriculum could change, but the core curriculum reflects the efforts of clerkship directors in Saginaw area hospitals, who have become partners on the project.

At the Board of Trustees meeting last week, Rao said the search is on for an interim dean to head up the school.

He said he’s very interested in the visions of Saginaw area Drs. Gerald R. Schell and E. Malcolm Field for a Michigan clinic that would be affiliated with the school.

“What happens in the first two years determines the design, and that’s what’s currently waiting to be put into motion,” he said.

The presidency offer in Virginia developed rapidly, Rao said. He said the decision came with “mixed emotions.”

“I learned that I was ‘likely’ about a week ago,” he said. “I did notify the appropriate people as soon as I thought that something could happen.”

Gail Torreano, Board of Trustees chair, who was also on the conference call, said a search firm will be engaged soon. They will explore the need for an interim president, depending on the timeline, she said.

“I am very confident, as are the other board members, in the executive leadership team,” she said. “Life will continue.”

Rao said he exceeded the goals he had planned on at CMU. He said a medical school was not on his agenda when he came.

“I have an enormous amount of relationships and a big chunk of my life – more than most presidents – at Central Michigan University,” he said.

Rao said he was approached last fall by a “very convincing” search consultant for VCU, but initially had no intention of moving into serious consideration.

“But obviously that changed,” Rao said.

The fact that VCU is “beyond a $2 billion organization,” made the offer more interesting, he said.

His annual compensation package will total $615,000 at VCU, from public and private funding.

He said a provision in his contract allows 120 days, approximately four months, for notice on resignation.

Rao is scheduled to testify before Michigan Senate committee next Friday at Eastern Michigan University regarding Gov. Jennifer Granholm’s proposed budget.

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Updated 11:30 a.m. Saturday.

University President Michael Rao said the next president of Central Michigan University will be in the position to “think big.”

The 42-year-old said during a teleconference with reporters this morning that when he moves on to Virginia Commonwealth University starting July 1, the legacy he leaves behind will not be his, but CMU’s.

“One thing I’d say (to the next president) is bring your heart, bring your soul. Be prepared to do really big things,” Rao said.

Rao, Central Michigan University’s 12th president, was chosen to be VCU’s next president Friday night by its Board of Visitors during a closed meeting.

CMU Board of Trustees Chairwoman Gail Torreano said this morning that she is confident in the Board’s abilities to carry on after Rao’s departure.

She assured university students, faculty and staff, that the Board’s commitment to CMU will be in no way halted..

“Although Mike will be leaving, the Board of Trustees remains the Board of Trustees,” Torreano said. “The vision is more than just one person.”

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Original post at 7 p.m.

University President Michael Rao will be the next president of Virginia Commonwealth University starting July 1.

Rao, Central Michigan University’s 12th president, will take office as VCU’s fifth president, succeeding 69-year-old Eugene Trani, who is retiring to teach as a professor at VCU.

The VCU Board of Visitors made the announcement after a closed meeting Friday evening to finalize his contract, which includes an annual compensation package totaling $615,000.

Rao’s VCU approved salary is $488,500, of which $176,113 is paid by state funds and $312,387 from private funds, according to a VCU release.

His total package includes $66,500 in deferred compensation, a $60,000 housing allowance and use of a car.

Rao will receive a signing bonus of $275,000 and will be required to repay $200,000 if he leaves VCU within five years.

“He did share with me that he’s had offers in the past,” said former CMU Trustee John Kulhavi. “But at that conjucture he expressed interest in staying at CMU.”

Kulhavi said he isn’t surprised Rao would take a new position because the average tenure for a CMU president is eight years, whereas Rao’s has held the reins for nine.

“In that industry or that field, you have to keep moving up or your not going to have those opportunities,” Kulhavi said.

Rao, 42, has served as CMU’s president since 2000. Before that, he was the chancellor of Montana State University-Northern, and president of Mission College in Santa Clara, California.

During a conference call with reporters on Saturday, Rao said his successor will be in the position to “think big.”

“One thing I’d say (to the next president), is bring your heart, bring your soul,” Rao said. “Institutions as big and large and historical as CMU are capable of making big impacts on their community.”

VCU is the state’s largest state-affiliated university with two campuses in Richmond, the capital of Virginia, and has an enrollment of more than 32,000 students. The school has a heavy emphasis on medical programs.

“I believe it’s a great move for Mike and his family,” said Sid Smith, the former board of trustees chairman and vice chair of the search committee that brought Rao to CMU.

“But, they’re a very good friend of ours, so we hate to lose him,” he said.

Through a university listserv, Rao sent an e-mail to all CMU students, faculty and staff at 7:04 p.m. on Friday.

He encouraged the CMU Board of Trustees and faculty, staff, students and alumni to “keep their perspective on your greatness and keep an eye toward the long-term future of the university.”

“There cannot be any slippage of plans for achieving the significant goals that will continue to shape this great institution,” Rao wrote.

Rao is currently under a recently renewed contract at CMU. The Board of Trustees increased Rao’s annual salary by 3 percent in December, from $293,550 to $302,357.

His contract was extended through 2016 on Jan. 1.

Under his current contract, Rao’s retention bonuses increase each year by 10 percent, starting at $100,000 in 2009, and his retirement and compensation packages increase from $46,000 to $49,000 and from $15,500 to $16,500, respectively.

Board of Trustees Chairwoman Gail Torreano said Rao will leave with “significant accomplishments” and “a great deal of positive momentum” when he departs from the university.

“We sincerely thank President Rao for his dedicated service, forward-thinking vision and extraordinary commitment to student success,” Torreano said in a press release.

Torreano and the Board of Trustees plan to engage in a “thoughtful and comprehensive” executive search in the coming weeks.

“As we face unprecedented challenges in higher education and the State of Michigan, it is imperative the Board of Trustees hires an experienced leader who is well-suited to continue our positive momentum during this critical period,” Torreano said.

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A career administrator
A timeline of Michael Rao’s administrative positions

1992 to 1994: Dean of Mission College in Santa Clara, Calif.
1994 to 1998: President of Mission College.
1998 to 2000: Chancellor of Montana State University- Northern.
2000 to Present: President of Central Michigan University.
July 1, 2009: Will become fifth president of Virginia Commonwealth University.

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E-mail the author: Jackie Smith