Sep
16
Bloomberg blasts Walder compensation package
ByThe city’s billionaire businessman mayor isn’t happy with Jay Walder’s compensation package, and Bloomberg is going to make his displeasure known by withholding his MTA votes when the transit agency’s board meets to confirm its new Chair and CEO.
Bloomberg’s unhappiness focuses around Walder’s Golden Parachute provisions. When Gov. David Paterson nominated Walder as head of the MTA, the Board attached a severance scheme to the deal. Walder is due to server a six-year term, but if he is kicked out — by the State Senate, by Paterson’s successor — Walder earns severance. If he doesn’t serve the full term, he earns a $350,000 severance, or the equivalent of one year’s salary. If he is booted within six months, he earns an additional $500,000, and if he is removed after six months but before a year, he earns another $400,000. This number dwindles as time and Walder’s tenure goes on.
According to reports from July, these conditions were necessary to attract Walder away from his job in London. The transit expert had a comfortable role at McKinsey, the consulting firm, and a life in London. He wouldn’t come to New York with the risk that he would be fired within a year. “If you want to bring in people of the highest caliber, you have to be willing to pay them salaries that are commiserate with what others in the industry are getting,” MTA board member Mitchell Pally said at the time.
Now, Bloomberg is upset the MTA for what he feels is an overly generous compensation package issued during a bad time for the state economy. Because Bloomberg respects Walder and feels uncomfortable making a big issue about, the four votes Bloomberg controls will abstain from voting on Walder. In the end, this is a political statement by a candidate running for office on a platform of reforming the MTA and not a mayoral judgment on Walder. The new MTA head won’t be overpaid or overcompensated, and Bloomberg the business man knows that. Welcome to campaign season.
12 Responses to “Bloomberg blasts Walder compensation package”
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This golden parachute was given to Walder because he was nominated by a governor that has no chance of actually “earning” his position by winning it in an election. The guy that becomes the next governor will most likely get rid of Walder. If they got rid of Sander a guy doing a fantastic job in almost every way they will certainly get rid of this guy too.
Well, considering that the Senate shouldn’t have gotten rid of Sander, maybe the next governor will think twice about ousting Walder if the state to pay 700,000 to do it.
You are using ‘fantastic job’ very loosely here.
Wait till the upcoming house cleaning is finished to get the true details of the ‘fantastic job’
If that turns out to be true, it is a coincidence that our daft state government fired him.
I wouldn’t judge Sander on anything from the point he was fired forward. He wasn’t given nearly enough time to do what he intended on doing which included streamlining management which never actually happened.
What’s the problem?
Yes, that’s quite rich coming from Mayor Oligarch.
Considering Bloomberg is making all of $1/year for being the mayor, I don’t see anything wrong with him making a statement about overcompensation.
It’s a privilege he affords himself because any salary he’d draw is a pittance compared to the amount of money he spends on vote buying.
Mitchell Pally needs to learn the difference between “commiserate” and “commensurate”.