Metra dealing with past, trying to move forward

When Metra Chairman Carole Doris first learned of suspicious vacation payouts made to former Executive Director Phil Pagano apparently authorized with her signature, she questioned her own judgment.

"My first impression was, 'how could I have signed this? Was I distracted? I didn't immediately question the authenticity although I was completely surprised by the documents," Doris said in a Monday interview with the Daily Herald.

But in a confrontation with Pagano, "Phil said to me, 'you didn't sign this,' and that pretty much ended our conversation," she recalled.

Metra later learned the trusted CEO took more than $475,000 in unapproved vacation pay and forged Doris' signature on authorizations. Federal, state and local authorities are now investigating the matter. Pagano committed suicide by stepping in front of a Metra train May 7, the same day the board was expected to fire him.

At their last meeting, Pagano expressed regret, Doris recalled. "He said he was very sorry and wondered if there was a way to work through this. I couldn't think of any way ... this is a public body." She advised him to seek legal counsel.

Although Metra limits vacation to five weeks and restricts payouts, Pagano was receiving advances on his 11 weeks of time off. Since then, the agency has prohibited vacation payouts and is reviewing salaries and benefits, Doris said. It also is examining vacation payouts Pagano allowed some employees.

Asked if the agency will offer its next CEO Pagano's compensation of a $269,000 salary, about $1 million in an executive incentive program, and a 401 (K) with a pension, Doris said "I think there's going to be a good balance between fair compensation and dedicated talent."

Although Doris was unaware of the vacation payouts, both Metra's chief financial officer and deputy executive director for administration signed off on his requests in the past. "I believe they looked at the documents with my signature and believed it was genuine," Doris said.

After a career advocating safety, Pagano's method of suicide was "extremely hurtful for all employees," Doris said. "He cared so much about safety, I can hardly remember a meeting where he didn't wear a safety crossing pin."

The agency plans to hire a permanent inspector general and an auditor/management consultant to scrutinize its books and practices.