DESPITE THE MBTA’s reputation as a wasteful state agency bloated with overpaid employees, the board that oversees the agency thinks upper management is underpaid and that low-balling those positions will make it hard to attract top-flight administrators.
Steven Poftak, a member of the T’s Fiscal and Management Control Board, made a presentation to fellow board members showing where the agency ranks in relation to peer agencies around the country, and the early conclusion is the T is outspent in attracting top-level talent and risks losing those they have to more attractive salaries. He said with a $2 billion annual budget, cutting corners at the highest level should not be an option.
“We want the T to be a world class destination and to do that we need to do a comprehensive evaluation” of the salary structure, said Poftak. “We cannot skimp on management; we cannot save money in five or six thousand dollar chunks.”
Source: Fiscal and Management Control Board
Poftak, in an unusual step of a board member making a presentation to his colleagues, gave the initial results of a study comparing T salaries to other agencies. Not only is the T’s general manager/CEO post paid far below the national average — $175,000 compared to $313,000 – the position is paid even less than those at the T reporting to the CEO.
The chief operating officer, for instance, earns $210,000 a year, $15,000 below the national average for the post but still more than the general manager. The assistant general manager makes $185,000, again, below the national average but still more than his boss.
According to a survey of other transit agencies in New York, Washington, Los Angeles, and elsewhere, key management posts at the MBTA are paid, on average, 25 percent below their counterparts.
The report from Poftak showed salary levels for new hires for the Green Line Extension project – who will be independent contractors because of the finite project schedule – were developed through recommendations from an outside consulting firm and the levels have allowed the T to attract top-tier candidates. John Dalton, recently hired as project manager, will receive $280,000 a year, roughly midway between the $250,000 to $300,000 range proposed by the consulting firm but could go as high as $382,000 with benefits and bonuses. Six other key posts will also be paid in ranges competitive with national averages.
The report, which only outlines initial data-gathering with the next update scheduled for the end of the year, will likely raise eyebrows given the fiscal board’s efforts to pare back costs for union workers, a sensitive subject Poftak acknowledged.
“That’s what I mean when I say there is tension between raising executive compensation and the pressure to lower the budget,” he said.
Brian Lang, another member of the fiscal board who often reflects union interests, asked if increasing the salaries for the current management staff would be the first priority of wage hikes. Without an overhaul, Poftak said the agency will lose out not only in luring new hires, but in keeping those with institutional knowledge and experience.
“Right now, our salary structure is a bit ad hoc,” said Poftak. “We have some wonderful managers we want to stay who we know are very important people who attract attention from other properties. Retention is definitely a part of that.”
Bad idea in my opinion. They have spent years trying to save money by outsourcing and fighting unions. Only to move the money up the ladder? Another organization promoting inequality. Look up the Pioneer Institute. A certain someone is a member and the ideology is right wing. Are they losing people at the top? Probably not. These executive compensation committees are one of the main reason executive pay is going through the roof. We need to relax executive pay raises (in Public Orgs) and get it back to a normal annual increase otherwise wage inequality will increase. That is what I think.
Raise salaries for new hires only. The current management team (and anybody who’s worked there in the last 10 years)are the guys that managed to arrive at the current level of disrepair and disfunction.