DIA Proposes $625,185 Compensation Plan for Execs

» Get Patch’s daily newsletter and real-time news alerts.

The Detroit Institute of Arts is turning to donors to pony up a $285,000 retirement severance package for former Director Graham Beal and bonuses for two other top executives.

The Detroit News reports the pay for Beal is part of a $625,185 compensation plan, which also includes bonuses and pay raises for executives Annemarie Erickson, chief operating officer, and Robert Bowen, the chief financial officer.

The plan covers fiscal years 2014 and 2015, as well as promises made in Beal’s contract.

Taxpayers in Macomb, Oakland and Wayne counties will only pick up the cost of the raises, about $49,000. The raises will be paid for out of the DIA’s general operating fund, which includes revenues from a special millage as part of the “grand bargain” to save the DIA’s collection from the auction block during Detroit’s bankruptcy.

“With the (Detroit) bankruptcy, these three people had an inordinate amount of additional work to get us where we are today: testifying at the trial, working within the requirements of the court. It was a second job for all three of these people,” DIA museum chairman Gene Gargaro told the newspaper.

Last year, DIA board members dug into their own pockets to repay $90,000 in controversial bonuses granted to top executives after money began flowing into from a voter-approved tax to support the world-class museum in 2012. The tax generates about $23 million annually.

Previously on this Topic:

• Politicians Fuming Over DIA Chiefs’ Double-Digit Pay Hikes
• Some Oakland Commissioners Give DIA Ultimatum Over Bonuses
• DIA Agrees to Pay Back $90K in Bonuses to Execs

After that dustup, the parties agreed that suburban leaders would be informed of compensation decisions before they are implemented, regardless of whether the money comes from public funds or private donations.

The new agreement requires that authorities in the three counties approve raises, but doesn’t give them any say when private funds are used.

Because the proposed raises are below national standards for museum executives, Gargaro doesn’t expect any objections to the taxpayer-funded part of the compensation package.

Tell Us:

• What do you think about the compensation proposal?

However, donor funds are an option to increase the executives’ pay if county officials balk.

“If (the counties) object, my option is to use donor funds,” Gargaro said. “There is no basis to object. Having said all that, this is the first time we are having discussions on this, and we will try to all work together.”

The plan includes 3 percent raises each year for two years, and bonuses of $65,000 and $40,000 over two years, respectively, for Erickson and Bowen. Beal would get a $20,000 raise and a $30,000 performance bonus. He retired from the museum June 30.

Here’s what’s proposed:

• Beal, who retired from the museum on June 30, would receive a $430,000 salary; proposed $20,000 raise; $30,000 bonus; forgiveness of a $155,832 housing loan; and a a $285,000 retirement severance for a total of $490,832.
• Erickson’s $295,000 salary would increase 3 percent ($8,850) for 2014 and 3 percent ($9,115.5) in 2015. She would receive bonuses of $25,000 in 2014 and $40,000 in 2015 for a total compensation of $82,965.
• Bowen’s $187,000 salary would increase 3 percent ($5,610) for 2014 and 3 percent ($5,778.30) for 2015. He would receive a $15,000 bonus for 2014 and $25,000 bonus for 2015 for total compensation of $51,388.