RTA report says buyout of Metra CEO flawed - New York News

RTA report says buyout of Metra CEO flawed

Posted: Updated:
CHICAGO (FOX 32 News) -

Tax payers picked up the tab for the ouster of the former Metra chief. But was it really your responsibility? Wednesday's RTA meeting shed some light on the situation.

Regional Transportation Authority documents indicate the Metra board's decision to give its former chief executive officer a $718,000 buyout was "flawed" and not "financially prudent."

An RTA report, released Tuesday, indicates the commuter rail agency had an insurance policy it could have relied on instead of agreeing to give taxpayer funds to Alex Clifford.

He resigned June 21, citing the pressure he was under to make political appointments.

So far the audit determined that Clifford's settlement agreement process was inadequate and not sufficiently documented. There was lack of justification for the generous post-employment package.

Metra officials said they gave Clifford the hefty severance money to avoid at least $2 million in legal fees from a protracted Clifford lawsuit.

The RTA contends the insurance policy could have covered a lawsuit beyond the first $150,000. It has a cap of $10 million.

RTA Chairman John Gates Jr. said Metra should review its insurance policy and, if possible, cancel Clifford's severance agreement.

The RTA said the audit is nearly complete. Information gathered has been analyzed and needs to be compiled into final form. The RTA expects the final work to be complete by the next RTA Board meeting on Sept. 13.

The Associated Press contributed to this report.

Follow Us!

Share Your Photos & Video

  • Local NewsLocal NewsMore>>

  • Amazon ships first order from New Jersey

    Amazon ships first order from New Jersey

    Wednesday, July 30 2014 1:31 PM EDT2014-07-30 17:31:08 GMT
    The world's biggest online retailer has shipped its first order from its new distribution center in New Jersey. The Interplak All-In-One Sonic Water Jet was sent from Robbinsville to an Amazon customer in New York. Amazon says it expects to employ more than 1,000 full-time employees at the 1 million-square-foot center just outside of Trenton.
    The world's biggest online retailer has shipped its first order from its new distribution center in New Jersey. The Interplak All-In-One Sonic Water Jet was sent from Robbinsville to an Amazon customer in New York. Amazon says it expects to employ more than 1,000 full-time employees at the 1 million-square-foot center just outside of Trenton.

  • Injured detective in Village shootout leaves hospital

    Injured detective in Village shootout leaves hospital

    Wednesday, July 30 2014 1:28 PM EDT2014-07-30 17:28:00 GMT
    The third law enforcement officer injured in a Manhattan shootout is out of the hospital. The NYPD says Detective Mario Muniz was left Bellevue Hospital shortly after noon on Wednesday. Hundreds of his fellow police officers cheered as Muniz left the hospital in a wheelchair pushed by his NYPD patrol partner, Joseph Trovato.

    The third law enforcement officer injured in a Manhattan shootout is out of the hospital. The NYPD says Detective Mario Muniz was left Bellevue Hospital shortly after noon on Wednesday. Hundreds of his fellow police officers cheered as Muniz left the hospital in a wheelchair pushed by his NYPD patrol partner, Joseph Trovato. Police Commissioner William Bratton has said the detective's protective vest may have saved his life.


  • 5 annoying things about the New York City subway

    5 annoying things about the New York City subway

    Wednesday, July 30 2014 1:07 PM EDT2014-07-30 17:07:01 GMT
    Subway problems are annoying, but it’s just a part of living in New York City. Public transportation isn’t glamorous. It’s a pain. It’s a convenience that can cause an inconvenience. Here is a list of five annoying things about subways in New York City.
    Subway problems are annoying, but it’s just a part of living in New York City. Public transportation isn’t glamorous. It’s a pain. It’s a convenience that can cause an inconvenience. Here is a list of five annoying things about subways in New York City.
Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices