Later Academic Career and The University of Texas
He produced Shakespeare plays as a guest professor at the University of Washington in 1943 and 1946, the University of Iowa in 1943, the University of Missouri in 1948, the University of Colorado in 1953, the University of Michigan in 1954, San Diego State University 1949–52, Allan Hancock College, California in 1968, and the Banff School of Fine Arts, Banff, Alberta, Canada 1959–1963. Payne went to the University of Texas at Austin in 1946 and spent the rest of his career as an academic there. He served as Chairman of the Department of Drama 1947–1947 and again 1951–52. He directed 29 plays at Texas, 24 by Shakespeare, and retired as Professor Emeritus of Drama in May 1973. His directed his last production at Texas in 1968, Shakespeare's The Tempest.
The B. Iden Payne Awards, awarded to actors for outstanding contributions to theater in Austin, Texas, are named in his honor. In 1976, one of the three theaters on campus at the University of Texas in Austin was named after him.
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