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news
February 12, 2025
As Innovation Foundation draws inquiry, OSU President Kayse Shrum resigns
By TRES SAVAGE NONDOC

Amid an ongoing review of improper transfers of “legislatively appropriated funds” involving Oklahoma State University’s Innovation Foundation, the university’s governing board announced the resignation of OSU President Kayse Shrum last week with no explanation, no comment from Shrum and no response to inquiries by university officials.

NonDoc obtained a document Wednesday morning, Feb. 5, showing four “motions” that the Board of Regents for the Agricultural and Mechanical Colleges made and approved after a lengthy executive session Friday that involved the review of “confidential complaints” made to the regents’ office.

“Proposed executive session (…) for the purpose of confidential discussions between the board and its attorney(s) concerning a pending investigation, claim, or action related to confidential complaints made through the EthicsPoint Incident Management system (EthicsPoint case Nos. 1750, 1751, 1754, and 1846) and a confidential complaint made to the Office of the Board of Regents during January 2025, disclosure of which the board, with the advice of its attorneys, has determined will seriously impair the ability of the board to process the claim or conduct a pending investigation, litigation or proceeding in the public interest,” the agenda item stated.

The four motions approved involve an apparent review of how state-appropriated dollars are being handled by OSU and its associated Innovation Foundation, which has a mission to “maximize the impact of OSU’s excellence in aerospace and advanced mobility, energy, agriculture, and One Health by translating innovative applied research into products and services, facilitating strong partnerships with aligned industry and regional partners, and investing in the development of emerging companies.”

As outlined in the document, the four motions approved by the OSU board Friday were: 1. Discontinue any transfers of funds from OSU to the Innovation Foundation, absent a written contract approved by the [Board of Regents] as required [Title 70, Section 4306(C)]; 2. Discontinue the expenditure or transfer of any and all legislatively appropriated funds transferred from the Oklahoma State University Medical Authority to Oklahoma State University pursuant to cooperative agreements entered into between the two entities, unless such expenditures or transfers strictly complied with the cooperative agreements and state law; 3. Institute a hiring freeze for employees who, as any part of their employment, would provide services to the Innovation Foundation, unless approved by the board; 4. Retain a financial consultant to review the university’s and its related entities’ systems and recommend actions necessary to ensure compliance with the expenditure of legislatively appropriated funds and analyze the impact on the financial integrity of the university.

Shrum, 52, was provost of the OSU Center for Health Sciences and dean of the OSU College of Osteopathic Medicine when regents hired her as president in July 2021. From 2019 to 2021, she served as secretary of science and innovation in Gov. Kevin Stitt’s Cabinet.

She released a statement Wednesday afternoon, Feb. 5: I have loved Oklahoma State University all my life. Serving as its president has been the highest honor of my career, and I am deeply grateful for the opportunity to be part of such a remarkable institution.

My core values are integrity, excellence, and service. These values have guided every decision I have made as a leader. I have always led with honesty, transparency, and an unwavering commitment to doing what is right for students, faculty, and the great state of Oklahoma. Any suggestion to the contrary is simply not true. My dedication to this university has been rooted in integrity and a steadfast belief in OSU’s mission.

As I step away from this role, my heart is full of gratitude, for the students who have inspired me every day, for the faculty and staff who work tirelessly to shape the future leaders, and for the OSU community that embodies the Cowboy spirit. Watching our students challenge the status quo, overcome obstacles, and achieve their dreams has been the greatest privilege of my time here. I am immensely proud of all that we have accomplished together, expanding opportunities, fostering innovation, and strengthening OSU’s impact across our great state and beyond. This university is built on a foundation of excellence, and its future is brighter than ever because of the incredible people who make OSU what it is.

Though I may no longer serve as president, I will always be part of the Cowboy family. OSU will always have my heart, and I will forever be its champion, standing firmly in my integrity, my love for this university, and my belief in the students who carry its legacy forward.

On Tuesday, Feb. 4, at the Oklahoma State Capitol, other top OSU brass appeared stressed as they alerted legislative leaders of the impending announcement. Ahead of her resignation, rumors suggested that Shrum could be taking a six-month sabbatical or leave of absence before returning to the OSU College of Osteopathic Medicine in a different role.

But when the chief communications officer with the Board of Regents for the Oklahoma Agricultural and Mechanical Colleges released a lengthy statement praising Shrum early Wednesday morning, it included no details about the circumstances of her resignation, which was said to be effective Feb. 3. Instead, it praised her “dedicated leadership” and “unwavering commitment to students” while referencing “the disruption within the Big 12 Conference” and her work “ensuring the university remained competitive on the national stage” in athletics.

Over the past year, tension between the regents and Shrum’s administration brewed behind the scenes. As head football coach Mike Gundy’s contract drew significant reporting — and misreporting — Shrum’s tenure was also a topic of executive session discussions by the regents in 2024, according to numerous sources. The board met Friday, Jan. 31, and after a lengthy executive session, members approved the motions related to the Innovation Foundation inquiry. By Monday, the board had accepted Shrum’s resignation.

“She went from being on solid footing last Thursday to essentially not being president on Monday night,” a person with knowledge of the situation said on the condition of anonymity. “Things moved really, really fast.”

Both Jerome Loughridge, senior vice president and chief of staff, and Elizabeth Pollard, CEO and president of the Innovation Foundation, are also leaving the university. Loughridge was selected in December to lead a new venture for the Aspen Institute, but Pollard’s departure appears to be connected to the financial concern raised within Shrum’s administration.

While it offered no details regarding the decision, Board of Regents Chairman Jimmy Harrel released a statement on behalf of the regents through Lance Latham, the board’s chief communications officer: “We extend our deepest gratitude to Dr. Shrum for her dedicated leadership, unwavering commitment to students, and significant contributions to the OSU System…” Harold Hamm, the founder and chairman of Continental Resources, released a statement almost simultaneously with the regents. Calling her brilliant, Hamm said he is “immensely grateful for all she has accomplished and excited for what comes next” for Shrum.

A spokesman for Attorney General Gentner Drummond said his office could not comment on whether an investigation had been referred to them regarding OSU. However, a spokesman for the Oklahoma State Bureau of Investigation said OSBI had not been referred any such investigation or inquiry.

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