The highly-paid CEO of Massport will get a large pay elevate after he acquired good marks on his first efficiency overview.
The Massport Board of Administrators voted unanimously on Thursday to approve an up-to 8% pay enhance for CEO Richard Davey, with a possible 10% efficiency bonus attainable.
Earlier than the pay bump — which shall be retroactive again to July — Davey was employed in 2024 at a wage of $420,000 yearly. The pay enhance will see his pay bounce to $449,400, with the potential for a further $4,200 to come back in addition to greater than $42,000 in bonuses attainable.
Board member John Nucci mentioned that Massport wants continuity to finish its long-term objectives and initiatives, and that the board needed to take into account issues of retention when deciding on Davey’s compensation.
“We as a board need to think about retention. We have got a great candidate here, a great CEO, and we want to make sure we keep the CEO on board,” he mentioned.
Nucci informed Davey that the Massport CEO had given the board “ample reason” to wish to maintain him there.
“We need your kind of leadership right now, Rich. I’m proud of the vote this board took when we brought you on board, and I’m proud to hear the evaluation that everyone has given because I totally agree with it,” he mentioned.
Board Chair Patricia Jacobs mentioned that in mild of Davey’s “exceptional performance in his first year,” that he ought to see a “7% increase to his base salary” with a further 1% bump to come back later if he efficiently delivers the board a “strategic plan.” She additionally really useful the potential for a ten% efficiency bonus, the utmost allowed underneath the legislation.
“This compensation adjustment is appropriate and justified — more than justified — based on his outstanding performance,” Jacobs mentioned.
The compensation plan, Jacobs mentioned, takes into consideration the CEO pay for different multi-model transportation businesses in different states. Even along with his new boosted pay price, Davey continues to be making a below-market price, she mentioned. The board has to verify they maintain Davey in place, Jacobs mentioned, as they’re confronted with a “highly competitive labor market.”
Board Vice Chair Sean O’Brien, who can be the president of the Teamsters Union, mentioned there needs to be “no question” that Davey deserves the pay enhance.
“Retention is extremely important, and we have a lot of great work ahead of us,” the union boss mentioned. “I totally support the compensation package.”
The board accredited Davey’s new pay price and bonus construction unanimously. The CEO informed the board that “it’s been an honor, and a real humbling time here.”
