Title
Change Order No.1 to CEO Employment Agreement
Body
Agenda of: September 13, 2017
Item No.: 2017-358
Amount: N/A
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: August 23, 2017
RE: Change Order No.1 to CEO Employment Agreement
MOTION
Upon recommendation of William M. Wolfson, Chief Administrative and Compliance Officer/ General Counsel, The Board of Directors (Board) of the Great Lakes Water Authority (GLWA): Approves the attached Change Order No. 1 to the CEO Employment Agreement; and authorizes the Board's Chairman and GLWA General Counsel to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
On December 17, 2015 the Board entered into an Employment Agreement (Agreement) with Sue McCormick to serve as the GLWA's Chief Executive Officer (CEO). That Agreement provided for an annual salary (Section 4.1) as well as a performance based bonus. (Section 5.1 and Attachment C). In addition, Section 5.3 of the Agreement provided the initial term for CEO McCormick's performance would end on June 30, 2017.
On June 28th the Board reviewed McCormick's performance during the relevant period with her and unanimously determined that her performance "Exceeds expectations."
Section 4.1 of the Employment Agreement with McCormick also called for a benchmarking of her compensation. Based upon this data and McCormick's performance, the Board is considering a salary adjustment reflected in the attached Proposed Change Order No. 1.
The "Performance metrics" for CEO McCormick during the evaluation period were reflected in Attachment C of that Agreement. In the course of reviewing those metrics it became clear that some were no longer relevant due to having been achieved or the occurrence of subsequent events. The Board created an advisory ad hoc Contract Committee to meet with CEO McCormick and...
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