Sheegl severance: $250,000

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This article was published 02/07/2015 (3723 days ago), so information in it may no longer be current.

Phil Sheegl was the City of Winnipeg’s highest-paid employee in 2014 — even though the chief administrative officer quit in 2013.

The former head of the public service, who resigned in the wake of construction scandals involving the police headquarters and fire-paramedic stations, received $250,000 in compensation in 2014, the city’s annual compensation disclosure, which was published Tuesday, shows.

Sheegl was also the city’s top earner in 2013, when he took home $235,334 in salary and benefits before his resignation in October of that year.

His remaining $250,000 salary and benefits — in effect, a severance package — were made public this week because they did not appear on the city’s books until 2014. The city must publish a list of all employees paid more than $50,000 in cash, benefits and other payments by July 1 of the following year.

Had Sheegl’s $250,000 payout emerged last summer, it could have proven politically problematic to former mayor Sam Katz, especially if Sheegl’s friend and confidante chose to run for re-election last October.

"It certainly looks bad. If they have another explanation for the delay, they should drill it out, right quick," said Todd MacKay, the Regina-based Prairie director for the Canadian Taxpayers Federation.

No one at the city will say why Sheegl’s severance package was made in 2014. Unlike previous years, when officials helped explain compensation disclosures, the city refused to comment on any aspect of this year’s document.

"We can confirm the City of Winnipeg has fulfilled its legislated obligation by publishing the report," spokeswoman Alissa Clark said Tuesday in a statement.

Mayor Brian Bowman, who campaigned on a promise of more openness, declined to comment on Sheegl’s severance.

"The mayor does not comment on specific personnel and HR matters," spokeswoman Carmen Barnett said Tuesday in a statement.

MacKay said Winnipeg should create guidelines for severance payments to ensure the city does not approve departure packages on the fly.

"This is a baffling situation. Mr. Sheegl bungles multimillion-dollar deals, resigns days before auditors and city councillors get to blast him and then gets to fill his pockets with $250,000 on the way out."

Sheegl’s actions as a city employee were criticized by three external city audits. He could not be reached for comment Wednesday.

In May 2014, Sheegl started an Arizona company called 7782 E Greenway LLC, which bought a US$1.04-million commercial property near the Scottsdale Municipal Airport a month later.

The purchase price is listed as $0 by the Maricopa County assessor’s office. A special warranty deed posted on the office’s website says the property was purchased for $10 "and other valuable consideration."

Three days after Sheegl created his company, Katz started an Arizona company of his own, AKA Holdings LLC. According to the 2014 compensation disclosure, Katz took home $154,508 for 10 months’ work as mayor.

Katz was out-compensated by former St. Norbert councillor Justin Swandel, who also did not run for re-election in 2014. Swandel earned $160,663 to become Winnipeg’s highest-paid elected official last year.

‘Mr. Sheegl bungles multimillion-dollar deals, resigns days before auditors and city councillors get to blast him and then gets to fill his pockets with $250,000 on the way out’ — Todd MacKay, Canadian Taxpayers Federation director

City spokeswoman Clark would not explain how Swandel out-earned Katz, other than to note retirement allowances are part of employee compensation.

The highest-paid employee to actually work for the City of Winnipeg in 2014 was an unnamed police inspector who has since retired. He or she received $249,323 in compensation last year.

Next on the list was former acting chief administrator Deepak Joshi, who took home $245,899 in 2014. He resigned in January; any potential severance package for Joshi will not be made public until 2016.

A total of 6,509 city employees received $50,000 or more in compensation in 2014, a six per cent rise over 2013, when 6,152 appeared in the compensation disclosure.

The number of employees compensated $100,000 or more in Winnipeg rose more dramatically, to 1,681 in 2014 from 1,288 in 2013. That’s an increase of 31 per cent in one year.

Most of the new high earners are Winnipeg Police Service employees. The ranks of $100,000-plus earners among the police jumped 75 per cent, to 1,015 in 2014 from 581 in 2013.

 

—with files from Inayat Singh

bartley.kives@freepress.mb.ca