Shakopee High School Principal Jim Murphy, whom the school board voted to fire after his former assistant was charged with theft, has agreed to resign instead.
In a deal reached Saturday, the board will drop its attempt to fire the principal, pay him $70,000 -- the equivalent of seven months' salary -- and cover his family health and dental insurance premiums for a year. His resignation takes effect Dec. 1.
The settlement comes nearly six months after Murphy's former assistant, Deanna Stanius, was charged with stealing more than $168,000 from the school's activity account. Six weeks later, the board voted to fire Murphy.
An internal investigation showed no evidence that Murphy had engaged in theft, but the principal was responsible for overseeing the account, the school board said in a resolution passed after a closed meeting on Saturday.
Murphy challenged the board's move to fire him, and an arbitration hearing had been slated to start Thursday. The settlement means that the hearing has been canceled.
"A lot of nasty stuff happens at hearings, and I think this is a good opportunity for everybody to ... move forward," said Roger Aronson, Murphy's attorney.
Assistant principal Barb McNulty took over for Murphy when he was put on leave. A long-term replacement probably won't be in place until next fall, said Superintendent Jon McBroom.
In an e-mail sent Monday, Murphy, 61, said he plans to seek a new job.