Northshire's Chris Morrow on Former CEO Retirement Package

By Chris Morrow -- Publishers Weekly, 6/9/2009 7:51:00 AM

I would like to commend the current Board of Directors of the ABA for how they have handled the transition to our new CEO. While the contract is not public, there has been refreshing transparency and I have been assured by a number of the board that there are no “extras” as in past contracts. This is important because future boards will inherit the responsibility for the current contract - and simply because it needs to be fair and just. Shining a light on past abuses has helped improve the current outcome and needs to be continued.

The need for equity and balance was highlighted at the ABA annual meeting at BEA. There was a presentation about how dismal the numbers are (membership down another 11%, the endowment down over $5,000,000 in 2008 and another $6,000,000 so far in this fiscal year) and an outline of some of the adjustments the former CEO made (hiring freezes, pay freezes and stopping payments to the staff’s retirement accounts among them). However, hidden in plain sight in the 2009 Statement of Income & Expenses was an increase in expenses of over $400,000 so far this fiscal year. Apparently, $350,000 of this expense is severance pay for the outgoing CEO. I am told that the board negotiated this amount down from a much higher number!

At a time when the very hard working staff of the ABA are having to do more work for less money and the fiscal and membership health of the organization are at an all time low, this is shameful and unjust. The current board was saddled with this old contract and has learned from its gross deficiencies and basic lack of equity for the organization. They deserve kudos for handling the transition of CEOs in a professional, responsible manner which should stand the ABA in good stead for years to come.

Chris Morrow
Northshire Bookstore