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The Honolulu Advertiser
Posted on: Friday, July 28, 2006

Water supply bonuses way out of proportion

A few years ago, Honolulu's semi-autonomous Board of Water Supply went on an aggressive program to shift its management premise away from a government-style operation to a more business-oriented approach.

That made good sense and, by all accounts, produced good results. As part of the shift, the board pushed through a state law that allowed the payment of bonuses to both unionized workers and management.

Fair enough. But as part of the bonus program, the Water Board authorized and paid extravagant bonuses to top management officials. At the top, the bonuses amounted to about 50 percent of what were already six-figure salaries.

Payments of this size have created discontent and controversy in the private sector, with shareholders asking why so much should go to lining the pockets of managers.

The question should be even more pointed in the public sector. Bonuses, such as the $63,000 paid on top of the $126,000 annual salary collected by former chief engineer Clifford Jamile, come directly out of the pockets of Honolulu residents who pay their water bill.

That's excessive.

The bonus program is now on ice, and it should remain that way until a more rational approach is developed. Relatively small bonuses for exceptional work by the rank-and-file might be appreciated by rate-payers.

Fifty-percent gifts to top managers, particularly those who were on their way out the door in any event, simply don't cut it.