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Our government masters pay themselves well!!!!
Former Arizona Commerce Authority CEO Don Cardon's bonus stirs questions by Craig Harris - Aug. 9, 2012 11:36 PM The Republic | azcentral.com Former Arizona Commerce Authority CEO Don Cardon, who quit with more than two years remaining on a three-year contract, will receive a $60,657 discretionary bonus, records obtained by The Arizona Republic show. A spokesman for Gov. Jan Brewer, who chairs the relatively new state agency, said it's his understanding that private funds will pay the cost of the bonus. At least one state lawmaker nonetheless criticized the action. Cardon, whose last day was July 6, drew a $300,000 annual salary and was eligible to receive a discretionary bonus of up to $75,000, according to his contract. He quit to return to his private businesses. Critics have questioned whether Cardon's compensation was excessive and have criticized the Commerce Authority for a lack of transparency with public funds. Commerce officials contend they have been overly transparent and say Cardon's salary and bonus were in line with industry standards. The Commerce Authority's executive committee voted late Wednesday to give Cardon nearly 81 percent of the maximum bonus amount based on the number of new jobs the authority says were created in Arizona during his tenure. Capital investment made in the state and long-term policy and strategy advancement achieved during the past fiscal year also factored into the bonus. Brewer also approved the contract, which was released publicly Thursday. The executive committee also voted to increase the pay of Sandra Watson, interim chief executive and president, by 15 percent, or $28,500, to $218,500. Brewer spokesman Matthew Benson said the governor supports the "contract closeout" with Cardon and the pay increase for Watson, who will receive more money because of a promotion and additional responsibilities. Both actions drew criticism from state Rep. Chad Campbell, D-Phoenix. "The Arizona Commerce Authority is a runaway train," Campbell said. "This organization is handing out pay raises and bonuses to insiders. This kind of Wall Street mentality is dangerous, and it has to stop." Just more than half of Cardon's bonus came because the Commerce Authority said Cardon helped create 5,610 jobs and $401 million in new capital investment. However, not all of those jobs nor the capital investment will have been created on his watch. Instead, Cardon is being credited for jobs and capital investment that businesses have promised to create during the next two years, even though he no longer is chief executive. The closeout contract did not break down how many jobs were created so far, or the capital investment that occurred during the fiscal year that ended June 30. Nor did the contract offer future projections. Benson and the Commerce Authority said a three-year time frame, including projections, to measure jobs and capital investments are standard in the economic-development industry. Brewer and the Legislature created the Commerce Authority to attract jobs to Arizona. Although it is a state agency, private business leaders sit on the board and Brewer is chairwoman. "I'm very proud of the work that was done by the governor and the Legislature, and I was blessed to be a part of it," Cardon said. "I am proud of the work that was accomplished by the team." Cardon said Commerce Authority officials evaluated how he should receive the bonus, and he referred questions to the agency. The state will pay Cardon's $60,657 bonus, but Benson said it was his understanding that TEAM ACA, a non-profit fundraising organization with close ties to the Commerce Authority, will later reimburse the state for that amount. Cardon is now the paid executive director of TEAM ACA. Cardon said his group next week will pay the state for his bonus, as well as for half of his salary while he was chief executive of the authority. "Team ACA will be cutting a check on Monday or Tuesday and will do exactly as we said we will do," Cardon said. Cardon has been credited with significantly shrinking a state agency and creating private-sector jobs. But his compensation has been controversial. In addition to his salary and discretionary bonus, Cardon was given a $50,000 signing bonus, a $30,000 wellness/health allowance and a $12,000 car allowance when he went to work for the Commerce Authority. TEAM ACA money also reimbursed the state for his $30,000 wellness/health bonus. Cardon announced Jan. 11 that he would resign as CEO and return to running his businesses. Following a public uproar over the fact that he quit after taking the taxpayer-funded signing bonus, Cardon said he would return it. Records released Thursday show Cardon returned nearly $16,268, while an additional $8,732 would be returned to the Commerce Authority through a payroll adjustment in withholdings from his signing bonus. Team ACA will pay $25,000 on Cardon's behalf. |