Walker gets severance check for $128,437.66

By Alicia Rimel

Published: June 30, 2008

Douglas C. Walker officially concluded a more than five-year career as Waynesboro’s city manager Monday. His last piece of business included securing his severance package, awarded as a result of Walker’s forced resignation by the City Council’s new majority.
The fledgling majority includes Frank Lucente, Tim Williams and Bruce Allen. Allen will be seated today at the council’s 9 a.m. organizational meeting to be held at the Charles T. Yancey municipal building in Waynesboro.
Waynesboro has cut Walker a check for the lump-sum payment of $128,437.66, which he picked up sometime Monday afternoon.
“In our model employment agreement, we recommend that managers negotiate a one-year severance,” said Martha Perego, director of ethics for The International City/County Management Association. “Somewhere between 6 months and a year is actually the norm.”
The deal includes six months’ worth of Walker’s $125,000 annual salary, equaling $61,512.70.
In addition, the former city manager will take home a list of benefits – all of which were negotiated in his contract prior to accepting employment with the city in November 2002.
Walker also leaves with six months’ worth of his current car allowance, plus current education leave, totaling $3,473.20.
“[The car allowance is a] benefit,” said Anne Showman, finance director for Waynesboro. “For him, it’s reportable income and he does pay taxes on it. That’s why it becomes part of this package. That is typical of any city manager, in their contract, to have either a vehicle provided or a vehicle allowance.”
Typical of all Waynesboro city employees, Walker will also receive unused accrual time. This includes the balance of his annual leave and sick leave, totaling $41,956.28. He will also accept unearned annual and sick leave for the remainder of 2008, which amounts to $7,570.02.
Walker’s check includes further compensation in the areas of health insurance, long-term disability, group life insurance and retirement. He will receive $4,680 worth of a health insurance subsidy; $399.60 in long-term disability; $615.12 of group life insurance; and $8,224.26 in retirement.
In addition to a $6.48 Employee Assistance Program benefit, Walker is permitted to spend up to $5,000 in outplacement services. If he chooses to utilize this benefit, he will submit receipts to the city, which will be reimbursed.
Some members of the council feel the deal is fair, while others do not.
“I have no problem with the six months severance package,” said Councilman Frank Lucente. “But the benefit package was a little excessive.”
“Absolutely [the deal is fair],” said Vice Mayor Nancy Dowdy. “That’s part of the risk he takes in holding a position like he does. I have yet to hear a valid reason why Mr. Walker was fired. Those are very difficult circumstances to work under because he works at the will of the council.”
Mike Hamp will serve as interim city manager as of midnight today. His status will be addressed when the new council is seated for it’s organizational meeting today at 9 a.m.
Hamp currently brings home $83,849.44 per year.
As the council looks to name a permanent replacement for Walker, a compensation package will again be the topic of conversation. As for council members who felt Walker’s deal was too generous, they might have trouble talking the next hopeful down, experts say. Six months to a year of compensated annual salary is protocol.
“What he got was not above and beyond the norm for city managers,” Dowdy said. “What is unfortunate here is that the new majority … I wonder if they knew beforehand what this would cost the citizens. Both in terms of losing the city manager and financial costs of it.”
Experts agree that awarding a severance package is not the ideal situation.
“It is not as if, when they negotiate, that they will necessarily use [the severance],” Perego said. “Having to utilize a severance is the last place you want to be as a council and as a city manager.”

Exit package
Details of former City Manager Doug Walker’s severance deal:
* Six months’ salary – $61,512.70
* Car allowance – $3,000
* Annual leave balance – $14,688.13
* Sick leave balance – $27,268.15
* Education leave – $473.20
* Employee assistance – $6.48
* Health insurance subsidy – $4,680
* Long-term disability – $399.60
* Group life insurance – $615.12
* Retirement contribution – $8,224.26
* Unearned annual leave – $4,730.82
* Unearned sick leave – $2,839.20
* Placement services – Reimbursable
TOTAL COMPENSATION – $128,437.66