State fiscal crisis?
What state fiscal crisis?
At 11:30 am today, the Connecticut Lottery Corporation’s Personnel Committee will meet.
The agenda begins with an executive session to review a “Draft Management Compensation Report.” They will then return from executive session and are scheduled to vote on the meeting’s one agenda item – The Management Compensation Report
Then at 1:00 pm, the full board of directors of the Lottery Corporation will meet.
Agenda Item IV: Executive Session. Topic: “Review of Draft Management Compensation Report.”
Return to open meeting, Agenda Item VI. New Business: “Review and Possible Action: Management Compensation Report.”
Of course, since the Management Compensation Report is presently in “DRAFT” form, the public entity won’t release the document until it is finalized.
Thus, anyone wishing to see the report would need to attend the meeting; wait for the personnel committee’s executive session to conclude and then read it quickly before the vote is taken.
Interestingly, today’s action might come as a surprise to those who are even paying attention to these things considering that at their December 5th meeting, the public was told that “Management continues to work on a compensation study, utilizing KardasLarson as a consultant…The [Personnel] Committee is assessing the data and findings. Management expects the project work to be finalized in the spring.”
Readers may recall that it was only last October that a headline in the Journal Inquirer caught people’s attention with “Top executives, already making six-figure salaries, given hefty bonuses.”
On October 19, 2012, the JI’s Don Michak wrote, “The Connecticut Lottery Corp. has dished out more than $170,000 in cash bonuses to 17 top executives and managers including 10 officials already paid more than $100,000 annually, the quasi-public agency’s records show…The payments in addition to the officials annual salaries ranged from a 6.7 percent bonus for the general counsel the corporation hired last November to a 10 percent bonus for its president and chief executive officer. Most fell between 9.5 percent and 9.7 percent.”
Although the Lottery Commission’s Board of Directors voted for the “incentive payments” at their September meeting it took a freedom-of-information request by the Journal Inquirer before the Lottery released the details of the bonus program.
At the time, the vice chairman of the lottery corporation’s board of directors and head of its personnel committee, told the JI that the bonuses were deserved, saying, “This is pay-for-performance…”
The Connecticut Lottery Board is made up of 13 members, 11 appointees of various elected officials and two state office holders. The State Treasurer and the Secretary of the Office of Policy and Management serve as ex-officio members of the board of directors. The Governor appoints 5 members, the remaining six are appointed by legislative leaders. Anne Noble, Governor Rell’s former Chief Legal Counsel has been serving as the president and chief executive officer of the Connecticut Lottery Corporation for five years.
All revenue, after paying for game prizes, retailer commissions, and operational and administrative costs are transferred to the Connecticut General Fund on a weekly basis. In fiscal year 2010, the Lottery transferred $285.5 million and in fiscal year 2011, $289.3 million was transferred.
While we won’t know until later what the new management compensation plan will look like, we can be pretty sure, considering their previous actions; the management team will be enjoying enhanced compensation packages in the very near future.
Hopefully some reporters will be at the meeting and cover the story.
Check back later for more details.