Thursday, March 19, 2009

Excessive Exit Packages

Judy Rogers was the city manager in Vancouver. She also sits on the board of the organizing committee for the Olympic games (VANOC).

In December, after the new mayor took over, Rogers resigned. It cost the city almost $600,000 to pay off Rogers. That payoff represented 2 years salary.

Its an unconscionable amount of money to pay someone not to work. The cash payment is only part of what Roger's receives. She still qualifies for a pension well in excess of $60,000 per year. In addition, she is not required to pay anything back should she find another job. She does not give up her role with VANOC and she receives job counseling.

Rogers is not the problem here. She was a perfectly competent city manager, but no friend of the unions who new city mayor Gregor Robertson relies on for support.

The problem is that the payoff to Rogers establishes a precedent for the next person in line. Its a culture of largess where politicians pay off established staff in order to put their own hand-picked people in place, often brown-nosed, ass kissers, who then go on to recommend projects the politician wants, despite the absence of any merit to the project.

Rogers' payment is actually not out of line. In Toronto, several senior bureaucrats were dismissed for cause including Wanda Lysiak, Treasurer, and were paid out. Lysiak was paid in excess of $400,000 despite being fired for cause and investigated for potential criminal malfeasance. However, nothing compared to one Toronto city manager, fired for cause and paid $500,000, who started work 3 days later at a 6-figure salary for the University of Toronto!

Of course public sector payouts don't compare to the private sector. Robert Nardelli was fired as CEO of Home Depot and paid $200 million!!

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