Metra CEO's Golden Parachute Raises Eyebrows
By aaroncynic in News on Jun 25, 2013 6:00PM
Metra CEO Alex Clifford will receive the kind of unemployment package equivalent to what it would take the average Cook County resident decades (if ever) to make. The Sun-Times reports Clifford, who resigned from the position on Friday, will walk away with an extra $750,000 in his pocket. The severance package includes $442,237 in a buyout of his three year contract, along with more money from accrued paid time off as well as extra cash if he chooses not to or can’t find another job.
Experts told the Sun-Times that Metra didn’t even legally need to give Clifford the package, and Metra’s Board Chairperson called it “generous.” Thomas Lys, professor of accounting information and management at Northwestern University’s Kellogg School of Management said “Because he resigned, he is technically not entitled to severance,” and added if he ends up unemployed for the last 12 months at the end of 2 years, he Clifford would have “no real incentive” to work.
Metra board member Arlene Mulder told the Sun Times this was “the best agreement” that could be arranged after three months of negotiation. Metra spokesman Michael Gillis told NBC5 “he board did say that they had worked this out with Mr. Clifford and his attorneys, the settlement agreement they worked out with him.” Clifford said that while he does not have anything lined up currently, he “was personally insulted by any suggestion that I would deliberately try to stay unemployed to collect the final 12 months of pay.”
State Rep. Deborah Mell, chairman of the Illinois House Transit Committee is mulling calling a hearing to investigate.