STRS FLASHBACK - 6 years ago - The day Herbie got his pink slip and Debbie left in tears!

From John Curry, August 4, 2009

I'll bet you would say, "Fire me, fire me," if you received this buyout package, wouldn't you?
Somehow, Deb, that trust was NEVER restored, was it?

John

The terms of Herbert Dyer’s $550,000 buyout package includes:
• $153,392 for salary and retirement contributions
• $70,009 for 72 days of unused vacation
• $164,327 for 218 days of unused sick leave
• $162,272 lump-sum payment on Feb. 29, 2004.

"Under a barrage of questions from reporters, Deborah Scott, chairwoman of the board, left the meeting in tears. “It’s not over,” she said. “There are other things we need to do.”

Those include restoring the trust of the fund’s 413,219 members, according to Scott and Asbury. "

August 6, 2003

STRS chief has contract bought out for $550,000

By PAUL E. KOSTYU
Copley Columbus Bureau chief

COLUMBUS — Under pressure from its members, the board of the State Teachers Retirement System bought out the contract of Executive Director Herbert L. Dyer for $550,000.

The representatives of state Auditor Betty Montgomery, Attorney General Jim Petro and Superintendent of Public Instruction Susan Tave Zelman balked Tuesday at the price tag and voted against the package. Dyer will remain an STRS employee until Feb. 29, 2004, but he will not have an office, and he must return the company-owned car and credit card he was using.

Dyer’s contract was last renewed April 1, 2002, and was good through June 30, 2005. His base salary this year was $266,810.

All eight board members agreed that Dyer had to go.

Dyer’s last day was Tuesday. He was immediately replaced by Damon Asbury, 60, who Dyer hired in July 2000 as deputy executive director for administration. Asbury was the superintendent of the Worthington City Schools in Central Ohio from 1991-2000.

Asbury and the pension fund’s three other deputy directors were present when the board acted after a three-hour closed meeting. It was the third such meeting used to discuss how to end Dyer’s contract.

Stephen A. Mitchell, the deputy executive director for investments and the only person other than Dyer who has a contract, refused to comment after the meeting.

Asbury said he has not discussed a contract with the board.

John Patterson, the board’s attorney and an assistant attorney general, said the settlement should prevent any lawsuit from being filed.

Under a barrage of questions from reporters, Deborah Scott, chairwoman of the board, left the meeting in tears. “It’s not over,” she said. “There are other things we need to do.”

Those include restoring the trust of the fund’s 413,219 members, according to Scott and Asbury.

Asbury said his immediate priorities include controlling expenditures, changing travel policies, developing tougher guidelines for special event costs and modifying compensation.

He said STRS would not pay for a going-away party for Dyer, though he did not rule out such a function that was “self-pay.”

Dyer was not present at the meeting, but issued a statement through STRS saying it was an honor “to serve Ohio’s teachers.”

Dyer will turn 65 prior to the settlement end date, he noted, and said “this time in Ohio capped a long career in retirement plan design and administration.”

Gerald B. Chattman, Dyer’s Cleveland attorney, could not be reached for comment.

Eric Hardgrove, a spokesman for Montgomery, said she was unhappy with the buyout.

“She would have felt better if the board just removed Mr. Dyer and take the compensation battle to court,” Hardgrove said.

He said the board’s decision did not serve the interests of members.

Dennis Leone, the Chillicothe superintendent who questioned STRS spending, said “nothing changes the work that needs to be done. The dollar amount was inappropriate. The board brought this on themselves.”

“It seems to be a golden parachute,” said Sen. Kirk Schuring, R-Jackson Township, a leading critic of Dyer. “It’s a shame that kind of money has to be spent to get out of a contract for someone who misled the system.”

“I want that $550,000 to go to the health-care system,” said Susan Jacoby, a retired Canton teacher. “I want Herb to give it back.”

She said Dyer’s departure will have no impact on a statewide rally planned for Aug. 15 at the Statehouse — the day of the board’s next monthly meeting.

When Dyer began at STRS in January 1993, the pension fund was $26.3 billion. It’s now $47.2 billion.

Dyer was the seventh executive director in the fund’s 83-year history. He was the second to come from outside the system. Scott said a consultant will be hired to find his replacement. She expects the process to take six to eight months.

Hardgrove said Montgomery does not want Asbury to be a candidate for Dyer’s permanent replacement. Asbury said he had not decided whether to apply for the job.

The terms of Herbert Dyer’s $550,000 buyout package includes:
• $153,392 for salary and retirement contributions
• $70,009 for 72 days of unused vacation
• $164,327 for 218 days of unused sick leave
• $162,272 lump-sum payment on Feb. 29, 2004.