Wednesday, May 11
Secrecy In Severance And Settlement Pacts
When Dan Grabauskas agreed to resign as the general manager of the MBTA in August of 2009, he was offered a generous severance package of more than $300,000. But there was a catch. The transit authority wanted him to keep the six-figure payment a secret. Grabauskas pushed back, eventually signing a revised agreement that did not include a confidentiality clause. But this incident raises a serious question: why are some agencies trying to keep the use of public dollars a secret despite the fact that the attorney general’s office has advised them for years to avoid confidentiality clauses in settlement pacts? Steve Poftak, research director at The Pioneer Institute, joins us to discuss.