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Monday, September 10, 2012

Port's Board May Advance Probe of Their Own CEO, While the CEO Stays Away

Posted by on Mon, Sep 10, 2012 at 7:33 PM

port_commisison.jpg

Despite the Seattle Times's second plea in a week—i.e., "Would everyone pleeeeeease ignore the Port of Seattle CEO taking a highly suspicious second job that pays him nearly a quarter million dollars a year!?!!"—it appears that several port commissioners are sticking their fingers in their ears and telling the Seattle Times to shove it.

We're hearing today that commissioners intend to introduce a resolution at tomorrow's meeting to further scrutinize the CEO's side job that many say presents a potential conflict of interest. Sources say the resolution would (1) seek independent, non-port-affiliated lawyers to inspect the CEO's employment arrangement, and (2) ask an auditor or ethics expert to review the situation.

Support comes in part from Commissioner Gael Tarleton, who told Port CEO Tay Yoshitani two weeks ago that he either needs to quit his $360,000-a-year job at the port or resign his job on the board of Expeditors International, a global shipping logistic firm that moves product through the Port of Seattle. Like Tarleton, Port Commissioner Rob Holland has given a similar ultimatum, and commission colleague John Creighton has led the charge for an independent legal review.

The commissioners have limited power, though.

As sources explain, calling outright for Yoshitani to resign could trigger a retaliatory lawsuit. If his second job is found kosher—and Yoshitani kicks up enough dust—he could walk away with a lucrative settlement while keeping his second job. Then Seattle would be stuck with an ugly bill and without a port CEO who, according to many people keeping score, has otherwise kept the port efficient, accountable, and profitable.

For his part, Yoshitani said last week that a lawsuit is "an option."

This wouldn't be the first time Yoshitani left a top port job with a pocketful of cash. As executive director of the Port of Oakland, Yoshtani resigned and managed to walk away with a six-month severance package in 2004. But this time around, Yoshitani won't be at the meeting, folks tell us. We're hearing he's in DC.

Port lawyers have defended the arrangement for his second job, which was approved by three-fifths of the board in 2011 (Tarleton and Creighton voted against it), while several state lawmakers have blasted Yoshitani's apparent conflict of interest and called for action.

If a resolution does come before the commission, a couple questions: Would any audits be conveniently timed around the election, when Tarleton is positioning in a race for the state house against fellow Democrat Noel Frame? And if there is an independent counsel, who will it be?

 

Comments (15) RSS

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1
What I don't understand is why the Seattle Times gives a damn about supporting Yoshitani's right to make an obscene amount of money through this potential conflict of interest. Aren't they usually trying to cut public employee pay? Or does that only apply to the rank and file and not people of the Blethens' socioeconomic class?
Posted by Michael H. on September 10, 2012 at 7:59 PM
2
I'm not sure how you can call an entity "profitable" when it exercises its taxation power to the tune of $70M per year.
Posted by Big Adventure Steve on September 10, 2012 at 8:11 PM
3
Wait a cotton pickin' second. He bamboozled another port out of money when he QUIT? I'd love to be able to quit my job and still get paid. Yoshitani must be an evil genius mastermind with a book of voodoo spells.
Posted by Leaward on September 10, 2012 at 8:26 PM
Supreme Ruler Of The Universe 4

Insider Transactions
http://finance.yahoo.com/q/it?s=aapl+Ins…

Insider Transactions Reported - Last Two Years
Date Insider Shares Type Transaction Value*
Aug 30, 2012 DREXLER MILLARD S
Director
25,000 Direct Option Exercise at $39.78 - $113.62 per share. N/A
Aug 30, 2012 DREXLER MILLARD S
Director
25,000 Direct Sale at $663.75 per share. 16,593,750
Aug 23, 2012 RICCIO DANIEL J.
Officer
14,871 Direct Statement of Ownership N/A
Aug 23, 2012 FEDERIGHI CRAIG
Officer
8,093 Direct Statement of Ownership N/A
Aug 7, 2012 LEVINSON ARTHUR D
Director
7,500 Direct Automatic Sale at $619.17 per share. 4,643,775
Jul 29, 2012 CAMPBELL WILLIAM V
Director
10,000 Direct Option Exercise at $7 per share. 70,000
Jul 29, 2012 CAMPBELL WILLIAM V
Director
10,000 Direct Automatic Sale at $588.85 - $591.32 per share. 5,901,0002
May 8, 2012 RAFAEL BETSY
Officer
2,954 Direct Sale at $572.19 per share. 1,690,249
May 7, 2012 LEVINSON ARTHUR D
Director
7,500 Direct Automatic Sale at $560.11 - $571.36 per share. 4,243,0002
Apr 26, 2012 FORSTALL SCOTT J
Officer
64,151 Direct Sale at $601.24 - $604.84 per share. 38,686,0002
Apr 26, 2012 DREXLER MILLARD S
Director
40,000 Direct Option Exercise at $9.16 - $14.21 per share. N/A
Apr 26, 2012 DREXLER MILLARD S
Director
40,000 Direct Sale at $603.52 per share. 24,140,800
Apr 15, 2012 CUE EDUARDO H
Officer
3,497 Indirect Acquisition (Non Open Market) at $0 per share. N/A
Apr 15, 2012 CUE EDUARDO H
Officer
3,497 Direct Disposition (Non Open Market) at $0 per share. N/A
Apr 15, 2012 WILLIAMS JEFFREY E
Officer
4,073 Direct Automatic Sale at $584.98 - $610.09 per share. 2,434,0002
Apr 14, 2012 CUE EDUARDO H
Officer
6,250 Direct Option Exercise N/A
Apr 14, 2012 CUE EDUARDO H
Officer
2,753 Direct Disposition (Non Open Market) at $605.23 per share. 1,666,198
Apr 14, 2012 WILLIAMS JEFFREY E
Officer
7,500 Direct Option Exercise N/A
Apr 14, 2012 WILLIAMS JEFFREY E
Officer
3,427 Direct Disposition (Non Open Market) at $605.23 per share. 2,074,123
Apr 14, 2012 RAFAEL BETSY
Officer
5,250 Direct Option Exercise N/A
Apr 14, 2012 RAFAEL BETSY
Officer
2,296 Direct Disposition (Non Open Market) at $605.23 per share. 1,389,608
Mar 25, 2012 COOK TIMOTHY D
Officer
106,640 Direct Automatic Sale at $595.96 - $606.8 per share. 64,131,0002
Mar 25, 2012 OPPENHEIMER PETER
Officer
80,147 Direct Automatic Sale at $597.06 - $599.33 per share. 47,944,0002
Mar 25, 2012 SCHILLER PHILIP W
Officer
64,151 Direct Automatic Sale at $602.30 - $603.05 per share. 38,662,0002
More...
Posted by Supreme Ruler Of The Universe http://www.you-read-it-here-first.com on September 10, 2012 at 8:40 PM
5
I am enjoying this thoroughly. Go Sonics!
Posted by Slog Tipper David on September 10, 2012 at 8:49 PM
6
@1: Yes. He's a CEO.

But he's not an evil mastermind; he has lawyers who execute employment contracts for him.
Posted by sarah70 on September 10, 2012 at 8:54 PM
7
Finally some sunshine at the Port. Thanks for helping that along. This seems just like the good ol' days of Dinsmore and Davis, backscratching their way through the public fisc.

But can't the Commission do something better bring on a Port-hired gun who'll delay, delay until the problem goes away? Get rid of the guy already.
Posted by Echo HIll on September 11, 2012 at 7:32 AM
8
Let me get this right - this guy gets paid $360,000 per year to run the port and now he want's to take a side job with the industry he's supposed to be regulating for $260,000 more? How could the Commissioners let something like this happen? Workers at the airport and port need second jobs just to make ends meet and we're paying the fox a half a million to guard the henhouse?
Posted by hardknox on September 11, 2012 at 7:55 AM
9
@2

Agree. The notion the port is a profitable when drinking from the public well vis-a-vis the funding it receives from the property tax is dubious at best. I would have a lot more sympathy for Mr. Yoshitani's postition if the port was truly profitable and didn't require my property tax dollars to keep it "profitable".

Posted by Fairhaven on September 11, 2012 at 9:47 AM
10
Astounding! This guy entered the ranks of the 1% by feeding at the public trough, yet he wants even more and is willing to get it in such a way that compromises the integrity of not only his position, but the entire Port. Are there no limits to his greed? All this while the truck drivers who move the goods and are at the heart of making the Port a viable economic engine for the entire region live in poverty. That's not my idea of the American Dream.
Posted by EileenOakTown on September 11, 2012 at 10:24 AM
11
I agree with this article entirely. I think that when you are the CEO of any business or corporation you should think about those who surround you. Mr. Yoshitani needs people, citizens, community members, and workers in order to function. The shift of importance from his workers to his almost $400,000 salary is not only selfish but immoral. I know I would rather know that I am effecting a large group of people and their families in a positive way then making money and becoming deaf and blind to the needs of these workers who work in unmanagable conditions. No one should have to work two jobs in order to take care of their families, when the one job they have should be paying them wages that allow them to do that. Irregardless of profits gained or porfits lost in the most recent years, we must think of the workers and their struggle, and know that the responsability falls on their boss (Yoshitani).
Posted by Russkiya Lubov on September 11, 2012 at 11:53 AM
12
I don't see what the issue is with Tay's second gig. The workers I talk with when i fly through Seatac (cab drivers, wheelchair pushers, skycaps) have second gigs, too. It's just that the first job pays for rent and the second job pays for food. Still, its really the same.
Posted by overboard on September 11, 2012 at 11:59 AM
13
Why is the Port Commission waiting on an outsider to tell them that it looks bad that Tay Yoshitani is getting paid vast sums of money to serve on the board of a shipping express company when he works for the Port of Seattle. Of course there's a conflict of interest. The port commisioners need to get over this and deal with the real issues at stake, getting living wages for workers
Posted by Questionable on September 11, 2012 at 5:00 PM
14
@overboard
You're joking right? There's a huge different between a man making $300,000+ a year adding a second job that causes a conflict of interest and an airport worker who makes poverty level wages and has to work a second job just to put food on the table for his two kids. One is about taking advantage of our tax dollars to make even more money and the other is about just trying to survive.
Posted by overlooked perspective on September 11, 2012 at 5:05 PM
15
No side job pays $260,000 a year. While this is a topic to discuss, there are larger issues...such as the fact that his CEO salary is as much as 18 people working poverty-wage jobs. The port needs to prioritize. Poverty-wage workers are struggling to put food on the table and support their families, while the port commissioners are wrapped around the 'apparent conflict of interest' of the CEO's new board position.
Posted by EVS on September 13, 2012 at 11:11 AM

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