Metro GM offered bonus for first year’s work

Sarles declines money, says fare hikes not the reason

Metro’s board of directors lauded the work of the agency’s general manager Thursday, saying he was doing such a good job in his first year that he deserved a bonus.

But Richard Sarles has declined the cash.

Metro board seeks independent review of development deal

Metro’s board is seeking an independent review of a joint development deal after questions arose about former board member Jim Graham’s role in the negotiations.

The board voted to ask its audit committee to hire an independent group to review the negotiations over the land site on Florida Avenue near U Street and Georgia Avenue in Northwest D.C.

The Washington Post editorial board has raised questions about the D.C. councilman’s role in linking the Metro land deal to a lottery contract, trying to block Banneker Ventures from getting the Metro development rights.

“I welcome the independent review. Let’s have it,” Graham told The Washington Examiner. “There is plenty of documentation to establish that Banneker lost the contract because of Banneker.”

Metro board Chairwoman Cathy Hudgins said earlier this month that the board decided to change course on the contract in March 2010, not because of Graham or any individual board member, but because of a dramatic change in the developer’s proposed price. She said she would seek an independent review because of the recent questions, though.

Still, it’s not clear what the Metro board will be able to do with the results of any review. Graham, a Ward 1 Democrat, was replaced on the Metro board in January 2011 after 12 years at the transit agency. The contract for the land deal has been awarded to another group. — Kytja Weir

“To me the recognition was all that was important,” he told reporters after the board meeting.

His decision came as Metro is planning to ask riders to pay more in fares, but he said that was not a factor in his decision.

Sarles earns $350,000 a year under his three-year contract as general manager and chief executive officer of Metro. He formally joined the agency in January 2011 after serving as the interim leader for 10 months.

It is not clear how much money Sarles turned down. Metro board Chairwoman Cathy Hudgins said the board never decided on a dollar amount. “We didn’t get to that point,” she told The Washington Examiner.

Hudgins praised Sarles for improving communications with riders, embarking on the largest rebuilding campaign at the agency since 1976, and restoring the confidence of federal and state officials.

She said was surprised Sarles declined the bonus, but said it was in keeping with his character. She didn’t recall any prior Metro general managers receiving bonuses since she joined the board in 2004. But she said their contracts were structured differently.

Even so, Sarles may decide to award bonuses directly to his top executives instead. He said when he joined Metro that if he earned any bonuses he would share them with his staff.

“What I will do is review each of the members of executive leadership team and make some evaluation of them,” he told reporters.

He said he planned to make a decision in the next few weeks.

The agency has been known to award bonuses to its highest-paid workers.

Last year, Metro told the D.C. Council in written testimony that it had not had not awarded any “bonuses” or “special award pay” in 2010.

In April, The Washington Examiner reported that at least seven highly paid workers also had received cash bonuses for as much as $20,000, including some as signing bonuses to join the agency. Metro also paid its second-in-command $30,000 extra as a housing allowance, on top of his $240,000 salary as deputy general manager.

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