MBTA, State Government, Taxes and Budget Issues, Transportation

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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.

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“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.”

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.

Meet the Author Jack Sullivan Senior Investigative Reporter , CommonWealth About Jack Sullivan Jack Sullivan is now retired. A veteran of the Boston newspaper scene for nearly three decades. Prior to joining CommonWealth, he was editorial page editor of The Patriot Ledger in Quincy, a part of the GateHouse Media chain. Prior to that he was news editor at another GateHouse paper, The Enterprise of Brockton, and also was city edition editor at the Ledger. Jack was an investigative and enterprise reporter and executive city editor at the Boston Herald and a reporter at The Boston Globe. He has reported stories such as the federal investigation into the Teamsters, the workings of the Yawkey Trust and sale of the Red Sox, organized crime, the church sex abuse scandal and the September 11 terrorist attacks. He has covered the State House, state and local politics, K-16 education, courts, crime, and general assignment. Jack received the New England Press Association award for investigative reporting for a series on unused properties owned by the Catholic Archdiocese of Boston, and shared the association's award for business for his reporting on the sale of the Boston Red Sox. As the Ledger editorial page editor, he won second place in 2007 for editorial writing from the Inland Press Association, the nation's oldest national journalism association of nearly 900 newspapers as members. At CommonWealth, Jack and editor Bruce Mohl won first place for In-Depth Reporting from the Association of Capitol Reporters and Editors for a look at special education funding in Massachusetts. The same organization also awarded first place to a unique collaboration between WFXT-TV (FOX25) and CommonWealth for a series of stories on the Boston Redevelopment Authority and city employees getting affordable housing units, written by Jack and Bruce. About Jack Sullivan Jack Sullivan is now retired. A veteran of the Boston newspaper scene for nearly three decades. Prior to joining CommonWealth, he was editorial page editor of The Patriot Ledger in Quincy, a part of the GateHouse Media chain. Prior to that he was news editor at another GateHouse paper, The Enterprise of Brockton, and also was city edition editor at the Ledger. Jack was an investigative and enterprise reporter and executive city editor at the Boston Herald and a reporter at The Boston Globe. He has reported stories such as the federal investigation into the Teamsters, the workings of the Yawkey Trust and sale of the Red Sox, organized crime, the church sex abuse scandal and the September 11 terrorist attacks. He has covered the State House, state and local politics, K-16 education, courts, crime, and general assignment. Jack received the New England Press Association award for investigative reporting for a series on unused properties owned by the Catholic Archdiocese of Boston, and shared the association's award for business for his reporting on the sale of the Boston Red Sox. As the Ledger editorial page editor, he won second place in 2007 for editorial writing from the Inland Press Association, the nation's oldest national journalism association of nearly 900 newspapers as members. At CommonWealth, Jack and editor Bruce Mohl won first place for In-Depth Reporting from the Association of Capitol Reporters and Editors for a look at special education funding in Massachusetts. The same organization also awarded first place to a unique collaboration between WFXT-TV (FOX25) and CommonWealth for a series of stories on the Boston Redevelopment Authority and city employees getting affordable housing units, written by Jack and Bruce.

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.”

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