Your largest member has just quit, complaining that your organization doesn’t do enough to help it and other large members and that they are underrepresented on your organization’s executive committee. And, oh, by the way, you’re paying your chief executive officer too much.
So what do you do? If you are the American Public Transportation Association, you fire the CEO. That’s not really going to solve any problems, but after 4-1/2 years of getting paid nearly $900,000 per year (see page 17), he probably has enough to retire on. There’s no word yet on whether his replacement will get a similar salary.
A salary and benefits of close to a million dollars a year might make sense for a company that earns billions of dollars in annual revenues. It makes a little less sense for APTA, which uses its $20 million in annual revenues to lobby Congress to get billions of federal dollars funneled to its members. It makes even less sense since the federal funds going to APTA members did not significantly increase during the reign of the newly retired CEO, part of whose qualifications are that he once drove the bus for the Indiana University basketball team coached by Bobby Knight. It is particularly galling to outsiders since taxpayers are the ultimate source of the funds used to pay him.
