Dean of the Faculty A. Michael Spence will leave Harvard this June to become dean of Stanford University's Graduate School of Business.

Spence's surprise resignation, announced last week, marks an end to his six-year term in what many consider the University's second most powerful post. In a letter to members of the Faculty of Arts and Sciences (FAS) dated March 23, Spence cited personal reasons for his move, considered by academics to be a significant step down.

"I arrived at this decision after a great deal of thought," Spence wrote in the letter. "[My] principal reasons are related to immediate and extended family. It should be said at the outset that opportunities such as this do not present themselves on a schedule over which one has complete control."

University officials said yesterday they were shocked and disappointed by Spence's decision to leave, particularly as Harvard plans to embark on a mammoth multi-billion dollar fundraising drive in which the FAS dean was to play a central role.

Spence, 46, also leaves unfinished his highly publicized plan to increase the number of promotions from within the university, which he says is critical to keep Harvard competitive in an increasingly tight academic market.

"Mike Spence is leaving for personal reasons that have my complete support and understanding," President Derek C. Bok told The Crimson in a written statement yesterday. "Any institution should feel fortunate to have him."

Administrators said they have made no plans to search for Spence's replacement, and Bok indicated that he would consider naming an acting dean until he appoints a permanent replacement.

Stanford University Provost James N. Rosse said that although Spence did not ask to be considered for the business school job, the search committee was aware that the widely respected economist might be looking to leave Harvard.

"We talked with him [for the first time] several weeks ago," Rosse, who chaired the 15-member search committee, said inan interview yesterday. "A number of us knew him,and we knew he was restless."

Rosse said he was "aware" that Spence was underconsideration for positions at other schools,including the presidency of the University ofVirginia.

But Spence said in an interview last night thatit was not dissatisfaction with Harvard that ledhim to accept the Stanford post. "I wouldn'tcharacterize myself as restless," Spence said.

"[At Harvard,] you get to work with a wonderfulvery large group of people," Spence said. "The jobat Stanford is rather similar in terms of jobdescription, but it is true that the faculty isabout one-tenth the size. It probably is moremanageable."

Although Spence will no longer command as largea faculty, Rosse said Stanford's governanceprocedures will allow the new dean to have moreinput into the administration of the university asa whole.

"There are fewer faculty but more directcontact with them," said John Roberts, theassociate dean for academic affairs at Stanford'sbusiness school. "He'll have more contact than Iwould guess he had at Harvard."

In his role as dean of Stanford's GraduateSchool of Business, Spence will oversee about 80full-time and 25 part-time faculty members--aconsiderable decline in constituency from hisposition as dean of Harvard's 700-plus member artsand sciences faculty.