Topic:
WAGES; QUASI-PUBLIC AGENCIES; BENEFITS (GENERAL); EXECUTIVE AGENCIES;
Location:
QUASI-PUBLIC AGENCIES;

OLR Research Report


November 22, 2006

 

2006-R-0688

QUASI-PUBLIC AGENCY SURVEY: 2006 UPDATE

By: Kristin Sullivan, Associate Analyst

You asked us to update OLR Report 2002-R-0518, soliciting information from the state's quasi-public agencies on bonuses, salaries, benefits, and severance agreements. You especially want to know whether the agencies altered any of their compensation or benefit management policies after Governor Rell directed their boards of directors to do so.

SUMMARY

To determine (1) whether Connecticut's eight active quasi-public agencies altered their policies concerning bonuses, salaries, benefits, or severance agreements since the governor's directive and (2) their current practices in these areas, we issued each a nine-question survey. We state each of the questions separately below, followed by each agency's response. But first we provide some background.

BACKGROUND

The state's eight active quasi-public agencies are the:

1. Capital City Economic Development Authority (CCEDA),

2. Connecticut Development Authority (CDA),

3. Connecticut Health and Educational Facilities Authority (CHEFA),

4. Connecticut Higher Education Supplemental Loan Authority (CHESLA),

5. Connecticut Housing Finance Authority (CHFA),

6. Connecticut Innovations, Inc. (CI),

7. Connecticut Lottery Corporation (CLC), and

8. Connecticut Resources Recovery Authority (CRRA).

While 1-120 of the Connecticut General Statutes includes in the definition of “quasi-public agency” the Connecticut Housing Authority and the Connecticut Hazardous Waste Management Service, we omit them from this list. The Connecticut Housing Authority is inactive and PA 06-76 eliminated the Connecticut Hazardous Waste Management Service.

After receiving the results of a report by the Office of Policy and Management (OPM), Governor Rell issued a February 17, 2005 press release directing the chairpersons of the eight active quasi-public agencies to review and alter their compensation and other benefit management policies. At the governor's request, OPM had audited the compensation, bonus, perquisite, compensatory time, hiring, and severance policies at the quasi-publics agencies, comparing them with state agencies and the private sector.

The governor subsequently convened a 10-member panel to recommend ways to make the quasi-publics' compensation and benefit policies more consistent with those policies at Connecticut state agencies. The panel, which included quasi-public representatives and members of the governor's staff, published its findings in a report entitled Report and Mandatory Minimum Procedures for Compensation and Benefit Management at Connecticut's Quasi-Public Agencies (Attachment 1). With its release, the governor again called upon the active quasi-public agencies to alter their policies and, “adopt both the letter and the spirit of the panel's report,” (State of Connecticut, Executive Chambers, press release, September 6, 2005).

(1) Has the agency changed any of its compensation and benefit management policies since Governor Rell asked the boards of quasi-public agencies to review and alter such policies on February 17, 2005?

(2) If yes, explain.

Quasi-Public Agency

Policy Changes

Capital City Economic Development Authority

n None (agency stopped awarding bonuses independent of the governor's directive)

CT Development Authority

n Adopted as guiding principles the policies and procedures in the panel's report

n Human Resources Committee will recommend, and the board will establish, compensation plans and employee benefit programs and policies in accordance with the report

CT Health and Educational Facilities Authority

n Instituted requirement whereby the Human Resources Committee reviews the executive director's performance evaluations of the managing directors and recommendations to the board regarding any compensation increase for them

n Eliminated agency-owned credit cards, except for those for central purchasing of supplies and computers

CT Higher Education Supplemental Loan Authority

n Instituted bonus program for staff

CT Housing Finance Authority

n Will not renew the lease on the president-executive director's vehicle

CT Innovations, Inc.

n Eliminated the Gain Share bonus program

CT Lottery Corporation

n Revised the Management Incentive Compensation Plan, capping bonuses and basing them on multiple criteria

n Established a Compensation Committee

n Changed the Management Compensation Plan and evaluation methodology

n Prohibited senior managers from earning compensatory time

n Limited corporate-owned or leased vehicles to certain employees

n Included all portable electronic communication devices in cell phone policy and based access on business necessity only

n Implemented a credit card policy

n Approved formally certain life and disability insurance and retirement plan policies approximating state benefits

n Adopted a managerial tuition reimbursement policy

CT Resources Recovery Authority

n Eliminated senior management participation in the compensatory time policy program and instead gave them additional personal days

n Expanded the definition of senior management

(3) Has the agency given a bonus to a director or employee since February 17, 2005?

(4) If yes, to whom, when, and how much?

Table 1 shows the quasi-public agencies that paid bonuses since Governor Rell's February 17, 2005 directive, the total amount paid, the average bonus, and the highest and lowest bonuses. The following quasi-public agencies paid no bonuses since February 2005:

1. Capital City Economic Development Authority;

2. Connecticut Development Authority;

3. Connecticut Innovations, Inc.; and

4. Connecticut Resources Recovery Authority.

Table 1: Quasi-Public Agency Bonuses Paid Since

February 17, 2005

Quasi-Public Agency

Total Bonus Dollars Paid Since 2/17/05

(# of Recipients)

Bonus Average

Bonus High

Bonus

Low

Capital City Economic Development Authority

None

-

-

-

CT Development Authority

None

-

-

-

CT Health and Educational Facilities Authority

$246,900

(30)

$8,230

$32,822

$1,000

CT Higher Education Supplemental Loan Authority

3,000

(2)

1,500

2,000

1,000

CT Housing Finance Authority

95,961

(102)

941

1,000

362

CT Innovations, Inc.

None

-

-

-

CT Lottery Corporation

337,791

(96)

*

11,767

1,327

CT Resources Recovery Authority

None

-

-

-

* Sales employees may receive quarterly and periodic incentive compensation payments rather than a lump sum bonus. For FY 2005 the data includes payments on or after the governor's February 17 directive only. For FY 2006 the data includes all payments. Given the partial data for FY 2005, we were unable to calculate an annual average bonus payment for each sales employee.

(5) What are the criteria the agency uses for awarding bonuses? Are bonuses linked to the individual's performance, the quasi-public agency's performance, or to the growth of its assets?

Quasi-Public Agency

Bonus Criteria

Capital City Economic Development Authority

None

CT Development Authority

Authority's current practice is to not award bonuses, but if this changed, it would follow the panel's report linking them to agency and individual performance

CT Health and Educational Facilities Authority

Agency and individual performance

CT Higher Education Supplemental Loan Authority

Agency and individual performance

CT Housing Finance Authority

Agency performance with separate payments possible based on individual performance

CT Innovations, Inc.

No formal bonus structure but an employee may receive a bonus under unusual circumstances

CT Lottery Corporation

Agency and individual performance

CT Resources Recovery Authority

None

(6) What is the agency head's current salary?

The following list shows the current or latest salary (not including any bonus payments) for each quasi-public agency's head:

Quasi-Public Agency

Salary

Capital City Economic Development Authority

$144,097

CT Development Authority

155,641

(executive director)

130,000

(president)

CT Health and Educational Facilities Authority

185,840

CT Higher Education Supplemental Loan Authority

102,000*

CT Housing Finance Authority

243,540

CT Innovations, Inc.

197,000

CT Lottery Corporation

147,423

CT Resources Recovery Authority

248,972

* The total amount of a personal services agreement with the Connecticut Conference of Independent Colleges, including the services of its vice president who acts as CHESLA's executive director and is paid by the CCIC.

(7) Does the agency provide agency-owned or -leased motor vehicles or other benefits to directors or employees? If so, please provide specifics.

Quasi-Public Agency

Benefit

Capital City Economic Development Authority

None

CT Development Authority

None

CT Health and Educational Facilities Authority

Executive director has use of a cell phone and laptop and authority maintains two corporate credit cards for central purchasing

CT Higher Education Supplemental Loan Authority

Executive director and deputy director have use of credit cards for business-related travel expenses

CT Housing Finance Authority

President-executive director has use of a leased vehicle for business purposes

CT Innovations, Inc.

Certain employees have cell phones and credit cards for business purposes

CT Lottery Corporation

Certain employees have use of leases vehicles; corporation owns one vehicle for business use; certain employees have use of cell phones; purchasing services officer possesses and controls corporate credit cards for business use

CT Resources Recovery Authority

Authority maintains pool vehicles for business use and provides cell phones to certain employees for business use

(8) Has the agency included as part of a severance package for a former director or employee a requirement that precludes the person from publicly criticizing or speaking against the agency? If so, please identify the former director or employee and describe details of the arrangement.

Quasi-Public Agency

Non-Disparagement Provision

Capital City Economic Development Authority

None

CT Development Authority

None

CT Health and Educational Facilities Authority

None

CT Higher Education Supplemental Loan Authority

None

CT Housing Finance Authority

Standard non-disparagement provision is part of any separation agreement

CT Innovations, Inc.

None

CT Lottery Corporation

None

CT Resources Recovery Authority

Standard non-disparagement provision is part of any separation agreement

(9) Describe the severance agreement for any former director or employee that provides benefits beyond those negotiated in that person's employment contract or included in the agency's personnel policy.

Quasi-Public Agency

Severance Agreements

Providing Extra Benefits

Capital City Economic Development Authority

None

CT Development Authority

None

CT Health and Educational Facilities Authority

None

CT Higher Education Supplemental Loan Authority

None

CT Housing Finance Authority

None

CT Innovations, Inc.

None

CT Lottery Corporation

None

CT Resources Recovery Authority

None

CAPITAL CITY ECONOMIC DEVELOPMENT AUTHORITY

Policy Change

As a result of the governor's mandate, the authority reviewed its compensation policies. It stopped awarding bonuses independent of, and prior to, the governor's directive. It made no other major changes.

Bonuses

The authority has not given a bonus to a director or employee since February 17, 2005.

Salary

Effective January 1, 2006, the executive director's salary increased 3% from $139,900 to $144,097.

Benefits

The authority does not provide agency-owned or -leased motor vehicles or other benefits to directors or employees.

Severance Agreement

The authority has no severance agreements in effect with former directors or employees.

CONNECTICUT DEVELOPMENT AUTHORITY

Policy Change

The Human Resources Committee and the Board of Directors amended the Compensation and Benefits section of CDA's operating procedures to adopt as guiding principles the recommended policies and minimum procedures set forth in the Report and Mandatory Minimum Procedures for Compensation and Benefit Management at Connecticut's Quasi-Public Agencies. Going forward, the board's Human Resources Committee will recommend, and the board will establish, compensation plans and employee benefit programs and policies in accordance with the report.

Bonuses

The authority has not given a bonus to a director or employee since February 17, 2005. But if it did award bonuses, it would link them to both individual and agency performance, following the recommendations in the panel's report.

Salary

The executive director's salary is $155,641 and the president's salary is $130,000.

Benefits

The authority does not provide agency-owned or -leased motor vehicles or other benefits to directors or employees.

Severance Agreement

The authority has no severance agreements in effect with former directors or employees.

CONNECTICUT HEALTH AND EDUCATIONAL FACILITIES AUTHORITY

Policy Change

Beginning with the 2006 performance reviews, the Human Resources Committee will review the executive director's findings as to the performance and compensation of the managing directors and recommend to the board of directors whether to approve any increase in compensation for them. The board's approval will be based on its review of the committee's findings and recommendations. (The board commissioned Owen-Pottier Human Resource Consultants to conduct an independent study and provide input into whether it should alter its compensation policies.)

CHEFA also eliminated agency-owned credit cards, with the exception of two that it uses for central purchasing of supplies and computers.

Bonuses

The CHEFA Employee Incentive Plan awards bonuses based on (1) individual performance that is above standard as measured against personal goals established at the beginning of each fiscal year and (2) agency performance as measured by the authority's strategic business plan. Table 2 shows the bonuses CHEFA paid in FYs 2005 and 2006.

Table 2: CHEFA Bonus Recipients and Amounts

Bonus Schedule

Position

FY 2005 Bonus

FY 2006 Bonus

Employees whose bonuses accrue and are paid out on a three-year schedule at a rate of 50%-25%-25% if they remain at the authority.

Executive director

$32,058

$32,822

Managing director, chief financial officer

16,717

20,663

Managing director

13,520

16,710

Employees whose bonuses accrue and are paid out on a two -year schedule at a rate of 50%-50% if they remain at the authority.

Assistant director

9,671

10,154

Assistant director

6,686

8,020

Controller

8,083

8,487

Manager

-

7,500

Manager

2,993

-

Employees whose bonuses accrue and are paid out in a single payment

Document analyst

6,271

6,585

Systems and data analyst

5,424

5,995

Financial analyst

3,161

3,303

Manager

2,390

4,971

Financial analyst, accountant

2,105

1,456

Accountant

2,000

2,080

Administrative Assistant

1,388

-

Systems and data analyst

-

2,438

Accountant

-

2,250

Accountant

-

1,000

 

TOTAL

$112,467

$134,434

Salary

The executive director's annual salary is $185,839.76 with an opportunity for a bonus.

Benefits

The authority provides the executive director with a cell phone and a laptop computer. It also retains two agency-owned credit cards for central purchasing of supplies and computers.

Severance Agreement

The authority has no severance agreements in effect and does not utilize employment contracts.

CONNECTICUT HIGHER EDUCATION SUPPLEMENTAL LOAN AUTHORITY

Policy Change

CHESLA instituted a policy allowing staff to earn small bonuses based on above standard or exceptional performance achieving individual and authority goals.

Bonuses

Two employees have received bonuses since the authority put the new policy in place: the deputy director and the loan portfolio analyst. Table 3 shows the amounts.

Table 3: CHESLA Bonus Recipients and Amounts

Position

Date

Bonus

Deputy Director

July 2006

$2,000

Loan Portfolio Analyst

July 2006

1,000

 

TOTAL

3,000

Salary

CHESLA has a $102,000 personal services agreement with the Connecticut Conference of Independent Colleges (CCIC). As part of that agreement, the CCIC's vice president serves as CHESLA's executive director. CCIC pays her salary.

Benefits

The executive director and deputy director both have an authority-owned credit card to use for business-related travel expenses.

Severance Agreement

The authority has no severance agreements in effect with former directors or employees.

CONNECTICUT HOUSING FINANCE AUTHORITY

Policy Change

The lease on the vehicle that the president-executive director uses will not be renewed upon its expiration in November 2007.

Bonuses

Since 1997, the authority's board of directors has awarded Success Sharing Program payments to employees based on the agency's performance. Regular employees, other than the president-executive director and the vice president, are eligible to receive between $250 and $1,000 in a lump sum. A “regular employee” is one who is not temporary, works more than 20 hours a week between January 1 and October 1, and is still employed as of December 31. The award depends on whether the agency's net operating revenue or total net revenues exceeds the year's budget projections by more than 5% or 10%. Award amounts and criteria appear below.

Performance Criteria

Bonus

Operating revenues and net revenues exceed projections by more than 10%

$1,000

Operating revenues or net revenues exceed projections by more than 10% when the other exceeds projections by between 5% and 10%

750

Operating revenues and net revenues exceed projections by 5% to 10%

500

Operating revenues or net revenues exceed projections by 5% to 10%

250

CHFA employees also may receive a payment when the authority's bond rating is increased and the president-executive director has the authority to grant non-budgeted, one-time salary payments of up to $5,000 to individuals for extraordinary performance. Table 4 shows bonuses employees received in 2006 for FY 2005.

Table 4: CHFA Bonus Recipients and Amounts

Position

FY 2005 Bonus

(paid in 2006)

Accountant – Multifamily

$1,000.00

Accountant – Single Family

1,000.00

Administrator – Residential Housing

1,000.00

Administrator – Residential Mortgage Programs

1,000.00

Administrator – Human Resources

1,000.00

Administrative Services Coordinator

1,000.00

Administrator – Budget, Planning, Research/IS/Admin

1,000.00

Asset Management Technician

1,000.00

Asset Management Technician

1,000.00

Asset Management Technician

1,000.00

Asset Manager I

1,000.00

Asset Manager I

1,000.00

Asset Manager II

1,000.00

Asset Manager II

1,000.00

Asset Manager II

1,000.00

Asset Manger II

1,000.00

Assistant Counsel

1,000.00

Assistant Treasurer

1,000.00

Assistant Treasurer – Loan Portfolio

1,000.00

Bookkeeper

1,000.00

Community & Program Development Officer

1,000.00

Delinquency & Foreclosure Reporting Coordinator

1,000.00

Deputy General Counsel

1,000.00

Executive Assistant

1,000.00

Executive Secretary

1,000.00

Position

FY 2005 Bonus

(paid in 2006)

Executive Secretary

$1,000.00

Executive Secretary – Legal

1,000.00

Foreclosure Claims Technician SF

1,000.00

General Counsel

1,000.00

Homemortgage Borrower & Counseling Coordinator

1,000.00

Human Resources Officer – Compensation

1,000.00

Human Resources Officer – Staff Services

1,000.00

Information Systems Support Specialist

1,000.00

Information Systems Support Technician

1,000.00

Investment & Debt Management Officer

1,000.00

Legislative Program Officer

1,000.00

Loan Processing Specialist

1,000.00

Loan Servicing Specialist

1,000.00

Loan Servicing Specialist

1,000.00

Mail/Supply Clerk

1,000.00

Manager – Multifamily Housing Underwriting

1,000.00

Manager – Architectural & Cost Services

1,000.00

Marketing & Customer Service Coordinator

1,000.00

Mortgage Specialist

1,000.00

Mortgage Specialist

1,000.00

Mortgage Underwriter

1,000.00

Multifamily Underwriter

1,000.00

Paralegal

1,000.00

Paralegal

1,000.00

Paralegal

1,000.00

Planning & Research Analyst

1,000.00

Policy Development Officer

1,000.00

Program Assistant

1,000.00

Program Assistant

1,000.00

Programmer/Data Communications Analyst

1,000.00

Senior Architect

1,000.00

Senior Asset Manager

1,000.00

Senior Asset Manager

1,000.00

Senior Management Analyst

1,000.00

Senior Mortgage Underwriter

1,000.00

Senior Mortgage Underwriter

1,000.00

Senior Mortgage Underwriter

1,000.00

Senior Mortgage Underwriter

1,000.00

Supervisor – Accounting Operations

1,000.00

Switchboard Operator

1,000.00

Technician – Tech/Support Services

1,000.00

Treasurer

1,000.00

Vice President Housing Development

1,000.00

Vice President Multifamily & Asset Management

999.49

Planning & Communications Coordinator

999.36

Tax Credit Officer

996.17

Accountant

995.54

Position

FY 2005 Bonus

(paid in 2006)

Administrative Secretary

$989.80

Accountant

985.59

Asset Management Technician

982.91

Asset Management Technician

982.02

Bookkeeper

982.02

Field Observer

980.87

Bookkeeper

979.98

Facility Maintenance Technician

977.69

Program Assistant

977.05

Asset Management Technician

973.61

Accountant

968.12

Senior Auditor

960.73

Internal Auditor

959.45

Loan Processing Specialist

913.81

Senior Information Systems Analyst

890.22

Asset Manager II

878.80

Administrative Secretary

818.82

Assistant Counsel – Real Estate Closing

781.97

Asset Management Technician

640.45

Development Cost Analyst

602.20

Architect

598.37

Asset Manager II

533.48

Controller

510.40

Asset Manager II

502.75

Program Assistant

486.17

Administrator – Multi Housing Development Programs

395.65

Administrator – Investor Reporting

363.14

Multifamily Underwriter Analyst

362.37

TOTAL

95,961.35

Salary

The president-executive director's annual salary is $243,540.

Benefits

CHFA provides the president-executive director with an agency-leased motor vehicle for business-related travel. He is prohibited from using it for personal use, except for commuting roundtrip to work and some travel to lunch. To calculate the taxable fringe benefit on the vehicle usage, the authority uses a prorated annual lease value method and adds a fuel cost rate of 5.5 cents per mile. It adds these amounts to the president-executive director's W-2 tax form so that he pays federal and sate taxes on the total amount. The vehicle is a 2005 Buick LeSabre.

Severance Agreement

It is standard CHFA personnel policy to include the following language in any separation agreement and general release:

“The employee agrees not to communicate or disseminate in any form or manner any adverse, false, negative, or derogatory information about the company, and/or its predecessors, successors, assigns and/or each of its present and former agents, officers, employees, directors, representatives and attorneys. Employee agrees not to disclose to anyone any information with regard to the company's business matters or any private or confidential information concerning the company unless compelled to do so under subpoena, judicial process, or otherwise by law.”

There have been no severance agreements that provided benefits beyond those included in the agency's personnel policy. CHFA does not use employment contracts.

CONNECTICUT INNOVATIONS, INC.

Policy Change

In January 2006, the board voted to discontinue the CI gain share program. Based on the program's termination provisions, gain share distributions may be available in the future depending on the performance of the CI portfolio.

Bonuses

The authority has not given a bonus to a director or employee since February 17, 2005 and does not have a formal policy on bonuses. Under unusual circumstances, however, the board's Finance, Operations, and Compensation Committee may award a bonus.

Salary

The president and executive director's annual salary is $197,000.

Benefits

CI provides business-use cell phones to certain employees. Select employees have company credit cards.

Severance Agreement

CI has no severance agreements in effect with former directors or employees.

CONNECTICUT LOTTERY CORPORATION

Policy Change

The corporation's board of directors revised and approved the Management Incentive Compensation Plan in September 2005, making it consistent with the recommendations in the Report and Mandatory Minimum Procedures for Compensation and Benefit Management at Connecticut's Quasi-Public Agencies. Under the new plan, the corporation awards bonuses based on three weighted measures: individual performance, per capita sales increase, and transfers to Connecticut's General Fund. Bonuses are capped in accordance with the limit in the panel's report (i.e., the rate of inflation for the year, multiplied by 1.5, multiplied by the individual's base salary), unless the Compensation Committee and board determine that circumstances exist that warrant exceeding it. Under the former plan, which an outside consultant reviewed prior to the governor's directive, the corporation awarded bonuses based on a single performance measure: General Fund transfers.

The board also formally established a Compensation Committee in accordance with the recommendations of the Quasi-Public Compensation Review Panel. The committee oversaw changes to the Management Compensation Plan and evaluation methodology, which the full board approved in September 2006. The board made and approved refinements to the Management Incentive Compensation Plan in September 2006.

The corporation made other changes as well. It:

1. revised its compensatory time policy by prohibiting individuals defined as “senior management” from earning compensatory time;

2. implemented a vehicle usage policy, formally limiting the assignment of corporate-owned or - leased vehicles for home-to-office travel to employees that fulfill public health, safety, or security responsibilities to conduct official state business;

3. included in its cell phone policy all portable electronic communication devices and mandated that such devices be provided to employees as dictated by business necessity; and

4. implemented a card policy mandating that corporate-owned credit cards be in the name of the Corporation and in the possession of, and under the control of, the purchasing services officer.

Bonuses

The corporation has two incentive compensation plans: one for management and one for its sales employees. The Management Incentive Compensation Plan is comprised of three weighted performance measures; 60% of the incentive compensation is based on the corporation's transfers to Connecticut's General Fund in relation to budget projections, 30% is linked to the corporation's per capita sales increase over the prior year, and 10% is based on individual performance in relation to approved performance objectives. Management bonuses are paid in lump sums not later than 90 days after the end of the fiscal year.

The Sales Incentive Compensation Plan provides employees with an incentive compensation opportunity based on the achievement of sales goals within their assigned territory or on a statewide basis, depending on the position. To be eligible to participate, employees must have attained a certain sales classification. Participants are eligible for a lump sum incentive payment at the end of each quarter and a “fifth payment” at the end of the fiscal year. They may also be eligible for additional opportunities during the year for specific promotions (e.g., Power Play promotion).

Table 5 shows the management incentive bonuses payments for fiscal years 2005 and 2006. Table 6 shows the sales incentive bonus payments for fiscal year 2005 beginning February 17 of that year. Table 7 shows the sales incentive bonus payments for fiscal year 2006.

Table 5: Connecticut Lottery Corporation

FY 2005 and FY 2006 Management Incentive Bonuses

Position

FY 2005

FY 2006

President & CEO

$11,767.13

-

VP Mktg. & Sales

10,355.14

-

Chief Fiscal Officer

9,973.45

$6,155.25

VP Operations & Admin.

9,827.77

6,065.35

Director of Human Resources

8,696.57

5,367.20

Director of Info. Systems

8,618.32

5,420.90

Corporate Counsel

8,339.90

5,245.75

Director of Lottery Sales

7,921.11

5,231.47

Director of Security

7,470.22

4,698.75

Financial Manager

7,301.05

4,731.25

Info. Sys. Mgr. Of Appl. Development

6,003.56

3,740.70

Director of Comm.& Public Relations

5,996.46

3,923.12

Lottery Games Manager

5,753.77

3,728.55

Director of Marketing Research

5,657.02

3,524.80

Human Resources Associate

3,712.51

2,506.83

Human Resources Associate

-

1,916.42

Info. Sys. Mgr. of Vendor Compliance

-

2,343.75

TOTAL

$117,393.98

$64,600.09

Table 6: Connecticut Lottery Corporation

FY 2005 Sales Incentive Bonuses

(Beginning February 17, 2005*)

Position

FY 2005 Bonus

SR Lottery Specialist

$3,057.43

SR Lottery Specialist

3,051.84

SR Lottery Specialist

3,006.13

SR Lottery Specialist

3,006.13

Lottery Sales Rep. 2

2,691.68

Lottery Sales Rep. 2

2,691.68

Lottery Sales Rep. 2

2,691.68

Lottery Sales Rep. 2

2,691.68

Lottery Sales Rep. 1

2,437.59

Lottery Sales Rep. 1

2,380.07

Lottery Sales Rep. 1

2,372.71

Lottery Sales Rep. 1

2,369.47

Lottery Sales Rep. 1

2,366.24

Lottery Sales Rep. 1

2,354.72

Lottery Sales Rep. 1

2,352.71

Lottery Inside Sales Rep.

2,349.16

Lottery Inside Sales Rep.

2,348.26

Position

FY 2005 Bonus

Lottery Sales Rep. 1

2,341.81

Lottery Sales Rep. 1

2,334.22

Lottery Sales Rep. 1

2,334.22

Lottery Sales Rep. 1

2,327.71

Lottery Sales Rep. 1

2,307.24

Lottery Sales Rep. 1

2,298.21

Lottery Sales Rep. 1

2,297.76

Lottery Sales Rep. 1

2,295.95

Lottery Sales Rep. 1

2,270.59

Lottery Sales Rep. 1

2,224.08

Lottery Sales Rep. 1

2,175.90

Lottery Sales Rep. 1

1,955.94

Lottery Inside Sales Rep.

1,776.85

TOTAL

$75,502.68

* Data includes bonus payments made on or after the governor's February 17, 2005 directive only.

Table 7: Connecticut Lottery Corporation

FY 2006 Sales Incentive Bonuses

Position

FY 06 Bonus

Lottery Sales Rep. 1

$2,639.56

Lottery Sales Rep. 1

2,517.24

Lottery Sales Rep. 1

2,510.24

Lottery Sales Rep. 1

2,510.18

Lottery Sales Rep. 1

2,494.04

SR Lottery Specialist

2,482.29

Lottery Sales Rep. 1

2,454.01

Lottery Sales Rep. 2

2,415.75

Lottery Sales Rep. 2

2,415.75

Lottery Sales Rep. 2

2,415.75

Lottery Sales Rep. 1

2,407.45

Lottery Sales Rep. 1

2,402.66

Lottery Sales Rep. 1

2,379.67

Lottery Sales Rep. 1

2,368.16

Lottery Inside Sales Rep.

2,366.50

Lottery Sales Rep. 1

2,364.03

Lottery Sales Rep. 1

2,357.92

Lottery Sales Rep. 1

2,357.32

Lottery Sales Rep. 1

2,356.07

Lottery Sales Rep. 1

2,356.07

Lottery Inside Sales Rep.

2,353.78

Lottery Sales Rep. 1

2,349.43

Lottery Inside Sales Rep.

2,346.67

Lottery Sales Rep. 1

2,343.27

Position

FY 06 Bonus

SR Lottery Specialist

2,278.86

SR Lottery Specialist

2,271.39

SR Lottery Specialist

2,271.39

Lottery Sales Rep. 1

2,211.71

Lottery Sales Rep. 1

2,211.71

Lottery Sales Rep. 1

2,211.71

Lottery Sales Rep. 2

2,084.69

Lottery Sales Rep. 1

1,786.41

Lottery Inside Sales Rep.

1,353.01

Lottery Sales Rep. 1

1,326.69

TOTAL

$80,294.17

Salary

The president receives an annual salary of $147,423 and has an opportunity for a bonus.

Benefits

The security director has use of a state vehicle for (1) home-to-office travel, (2) travel during the workday, and (3) handling security incidents that occur on nights and during weekends. Field employees within the Sales and Collections Departments are assigned state vehicles that are parked in the field at approved locations. The Security Department maintains a business-use vehicle that is garaged at lottery headquarters. The corporation leases the aforementioned vehicles through the Department of Administrative Services. In addition, the corporation owns one vehicle that it keeps at lottery headquarters and makes available to employees, as needed, for business use

Cell phones are provided to employees, as dictated by business necessity, for official Lottery business with occasional personal use. Costs incurred for personal use are borne by the employee. Finally, the corporation maintains corporate-owned credit cards, which a purchasing services officer possesses and controls.

Severance Agreement

The corporation has no severance agreements in effect with former directors or employees.

CONNECTICUT RESOURCES RECOVERY AUTHORITY

Policy Change

CRRA eliminated participation by senior management in the compensatory time policy program and expanded the definition of senior management to include the directors of operations, environmental affairs, and legal services. Senior managers receive four additional personal days in lieu thereof.

The authority also published its compensation plan in full in the January 1, 2006 edition of its Employee Handbook. (It had eliminated its incentive compensation program in spring 2002).

Bonuses

The authority has not given a bonus to a director or employee since February 17, 2005 and does not have a bonus structure.

Salary

The current annual salary of the president is $248,972.36.

Benefits

The authority owns and maintains pool vehicles for company business. It does not assign the vehicles to individuals nor make them available for personal use. The authority provides company-owned cell phones to employees when the phones facilitate or are required for job performance. Employees who meet the criteria for cell phone approval are assigned a service plan designed to meet their expected or documented business usage needs. CRRA allows up to 90 minutes of personal usage per month stemming from an employee's job requirements.

Severance Agreement

While no directors, officers, or senior managers have been terminated since February 17, 2005, CRRA includes the following non-disparagement provision in its employee termination arrangements:

“The Employee will not, either verbally or in writing, make any adverse, negative, derogatory or disparaging remarks or statements about any of the CRRA Released Parties to anyone. However, this paragraph shall not prohibit Employee from giving truthful testimony pursuant to a lawful subpoena.”

CRRA has had no severance agreement with a former director or employee that provides benefits beyond those negotiated in the employment contract or included in the authority's personnel policy.

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