Metra launches search for new director

Metra officials moved to hire a new executive director even as unwanted baggage from their former chief keeps surfacing.

Metra board directors Monday agreed to hire executive search firm Slavin Management Consultants to assist in finding a replacement for Phil Pagano. The Metra CEO killed himself May 7 in the midst of a financial misconduct probe that revealed he had received at least $475,000 in unauthorized vacation payouts.

Metra Chairman Carole Doris also listed some irregularities uncovered as part of a Regional Transportation Authority audit of Metra operations in the wake of the controversy. These are expected to be discussed Thursday at an RTA meeting.

Among the findings was that Pagano had approved agreements in 2008 with former Deputy Executive Director Rick Tidwell and labor relations head Mike Nielsen in which they agreed to stay past their retirement dates in exchange for vacation payouts. Vacation payouts are only supposed to be allowed under extreme circumstances.

The deal had the effect of increasing the pension benefits for both men, which are calculated using the three highest years of pay, Doris said.

Also, Pagano authorized the payout in 2008 of about $132,932 to six employees who apparently had been shorted one week of vacation, including himself and Tidwell.

And, as reported previously by the Daily Herald, Metra contributed to two retirement plans for certain employees, including Pagano. The RTA audit noted that in 2008, Metra contributed amounts ranging from $5,000 to $22,500 per person to a 401(K) for 14 high-ranking employees on top of the pension plan it already pays into.

Although these actions were apparently legal under the broad executive powers Pagano had, they contravened acceptable government standards and were done without the board's knowledge, Doris said.

She called the findings "unfortunate," adding "we have already begun in a strong way to address these issues."

Metra directors said they interviewed two other executive search firms, Korn/Ferry International and Voorhees Associates, but Slavin had the lowest price and was well-qualified. Slavin, based in Atlanta, is expected to receive $14,990 plus expenses of up to $8,245. The process is expected to take three months.

Directors also agreed to put out a request for proposals from lawyers to advise the board. Directors had already hired the firm Johnston Green for that purpose immediately after the scandal broke and the assignment was racking up so many hours, it was time to do a formal search, she said.