"I fully respect and accept president Meehan's prerogative in building his leadership team," Grossman's said in a statement released Friday evening.

The announcement follows news last week that the University of Massachusetts system president, Martin T. Meehan, had told Grossman he would terminate her without cause by the end of the school year, amid concerns about the campus's performance.

University of Massachusetts Dartmouth Chancellor Divina Grossman announced Friday that she will step down this month after three and a half years leading the system's South Coast campus.

She will remain a tenured faculty at the school. This is Meehan's first major leadership change since he took over in July.


In a separate statement Friday, Meehan thanked Grossman for her service.

"I have enjoyed working with her, first as a chancellor colleague and in my current role as president," the statement said, calling Grossman a good friend and "true believer in public higher education and its mission."

During Grossman's tenure, enrollment and private fund-raising at UMass Dartmouth have dropped and neglected building maintenance has grown. The school has also cycled through top administrators during her leadership, including three provosts and as many fundraising chiefs and chief financial officers.

She joined UMass Dartmouth in 2012 after serving as vice president for engagement at Florida International University in Miami. She is originally from the Philippines and came to the United States to pursue a graduate degree in nursing.

Grossman's salary this year is $300,107. She also earns a $32,000 annual housing allowance, $12,000 for a vehicle and $8,000 toward life insurance.

She signed a new, three-year contract in May. It included a provision that said the university is only obligated to pay one year's salary as severance if she is terminated without cause during the first 12 months of the contract.


According to a copy of the severance agreement provided by the university, Grossman will receive a lump sum of $450,160, which is equal to 18 months' pay. After her last day, Dec. 24, she will remain on sabbatical status without pay through Dec. 31, 2016.

In her statement, Grossman acknowledged that her tenure began with challenges, including a $15 million budget shortfall. Then the campus was thrust into the international spotlight after it was discovered that one of the Boston Marathon bombers, Dzhokhar Tsarnaev, was a student there. Grossman said the campus responded "with a steadfast commitment to the well-being of our students and the quality of their education."

UMass Dartmouth has also had to contribute to the struggling UMass Law School.

During Grossman's tenure, private fund-raising dropped from $14.3 million the year before she arrived to $4.5 million this year. Enrollment declined from 9,225 to 8,916 while it grew on other campuses, excluding the medical school.

Grossman's statement highlighted many of her accomplishments, including adding several academic programs, expanding the online program, and improving the freshmen retention rate.

"I am grateful to all of the colleagues, students, alumni, and community partners who have offered their friendship, support, intelligence, and insights to me over the last few years as we have worked to advance the cause of UMass Dartmouth," she said.

Laura Krantz can be reached at laura.krantz@globe.com. Follow her on Twitter @laurakrantz.