A "terms of departure" that will entitle former Initiatives Prince George (IPG) chief executive officer Tim McEwan to nearly $140,000 over the next six months is a good deal given the alternative, the economic development
corporation's vice-chair said Friday.
Speaking at a press conference, Mark Feldinger contended the cost would have been much higher if the deal had not been reached because there were still 28 months remaining on the employment contract with McEwan, who was earning $170,000 a year in salary plus
bonus.
IPG's board of directors agreed to the payout after receiving independent legal advice,
Feldinger also noted.
"We're very satisfied with the outcome," Feldinger said at the IPG offices.
The terms of departure state that effective Feb. 20 McEwan will receive a further six months full salary and benefits plus a $15,000 bonus at the end of that time and a $20,000 moving allowance. Feldinger said the entire package adds up to $139,860 - about 20 per cent of the remaining contract cost.
Job accepted on day contract was signed
As to whether he had already landed another job by the time the deal was signed, Feldinger said McEwan told directors he "expected a job offer and that he was inclined to accept it" after the agreement had been reached on Jan. 21 but before it was signed on
Jan. 27, 2011.
Had he already landed a job, the deal would not have been signed, Feldinger said.
"If we had had a firm understanding that he had another job, then yes, we wouldn't have signed, but we had no other indication other than what I've already expressed to you - that he believed he would receive an offer and he was inclined to accept it and those were the terms under which we concluded the agreement," Feldinger said.
Reached Friday after the press conference, Jobs, Tourism and Innovation Minister Pat Bell said McEwan was offered his new job on Jan. 24 and accepted the position on Jan. 27.
Asked if that concerns him, Bell said he is not going to get involved in the issues related to IPG.
"I think ultimately, what did his contract say," Bell said.
"Was this meeting a test of the contract or was it more generous or not and ultimately I think that's what's important and I don't know those answers because I don't know what his contract said."
On selecting McEwan to run the major investments office, Bell stressed he was not involved in the hiring process.
"It should be clear that politicians aren't involved in the hiring process of people in the public service, so I wasn't aware that he was offered the position until after that," Bell said.
The provincial government posted the job on Nov. 29, 2011 and it was closed to applications on Dec. 21, 2011, according to a Jobs, Tourism and Innovation spokesperson.
Feldinger could not be reached for comment following the press conference.
Whether McEwan, who is now head of the provincial government's major investments office, was already employed when he took the deal has been a concern for Mayor Shari Green. If he was, Green has said "that's a problem."
Feldinger said during the press conference that when the board made the decision to sign the deal, Green was informed of the pending change.
"There were subsequent conversations as it related typically to the FOI-type requests that were out there and the questions that were being asked in the media, and we were explicitly asked if we knew or believed that Tim had a job and it was our direct communication to her that when we signed, we did not know that Mr. McEwan had a job," Feldinger said.
Green could not be reached for comment Friday.
Clause triggered talks
McEwan's employment contract, a separate document also obtained through the FOI request, states, in part, that IPG may give McEwan up to six months notice of its intention to terminate the contract or six months pay in lieu and Feldinger said that clause triggered negotiation of the terms of departure.
The contract is dated Jan. 1, 2011 and Feldinger said it was a renewal of McEwan's previous contract after three years of service and contained no appreciable changes.
The clause states that transfer of IPG's activities to the city - identified as the "shareholder" - are deemed termination, but Feldinger said the board initiated the negotiations for McEwan's departure "entirely on its own accord."
He said the talks began on about Jan. 13 with an unsigned deal reached about a week later. It was signed on Jan. 27 after board chair Glen Wonders had returned from a business trip.
However, Feldinger also said it was something in the works for a few months.
"Some of us had been having this discussion as early as last fall and it was brought to a board meeting early in January and we approached Mr. McEwan about the 13th, I believe was the date, with respect to his interest in negotiating a departure agreement,"
Feldinger said.
A change in direction
Feldinger said the board had a "wonderful relationship," with McEwan, but it was time for a change in leadership style.
"We all have different characteristics and attributes," Feldinger said. "Mr. McEwan was brought in as a transformative leader, to increase Prince George's economic participation in the North and as a service centre and to increase our influence as an economic force. "These terms typically run for a period of time where you say 'OK, it's now time for a change, we have achieved what we wish to do with that style of leadership and we wanted to move on with a new CEO in the role."
In a new CEO, Feldinger said the board is seeking a "more collaborative approach with the city," and added acting CEO Heather Oland has been doing a good job so far although she remains subject to a performance review before the board decides if she gets the job permanently.
The board has started on a new path towards a closer relationship with the city, Feldinger said.
"We look forward to continuing it and to do so at a lower cost of service than we had in the past," he said, and later added that even with the payout to McEwan, IPG will finish this fiscal year at or below budget.
He said a service review will be conducted, and will be carried out with city staff as opposed to with an external consultant as occurred last year.
The outcome may be more of a downtown focus, "but I'm speculating and I shouldn't do that," Feldinger said.
Board chair Glen Wonders was out of town Friday and not present at the conference.
