Following a closed-door discussion and unanimous vote on Tuesday evening by the Capital Area Transit System, the base salary for CATS CEO Bob Mirabito was increased by 19%—from $147,000 to $175,000—as part of a new three-year contract.
The raise means Mirabito’s salary is now higher than those of Police Chief Carl Dabadie ($160,000), Visit Baton Rouge CEO Paul Arrigo ($163,000) and BREC Superintendent Carolyn McKnight ($157,000), who are among the highest-paid public officials in Baton Rouge. Prior to the raise, Mirabito was already earning more than Mayor Kip Holden, who is paid $146,000 annually.
While Metro Councilwoman C. Denise Marcelle urged the CATS board prior to Tuesday’s meeting to reject Mirabito’s contract—calling the raise “appalling”—CATS board President Donna Collins-Lewis, who also serves on the Metro Council, defended the salary hike, saying puts CATS in line with other top executive salaries at peer transit agencies.
A review of salaries of transit system heads in peer cities including Charlotte, Little Rock, Memphis and Austin by Daily Report shows Mirabito’s new salary is indeed in the range of what his peers in those cities are paid.
The Charlotte Business Journal reported last month that officials there currently are searching for a new leader and hope to have a new transit CEO on the job by July. The system’s former CEO left the job in January, earning $229,000 annually.
Over in Austin, all of the city’s public transit system executives earn more than $157,000 annually, with the CEO’s salary set at $271,637 a year, according to an online database of salaries. Among other leading executives of Austin’s system, the COO earns roughly $208,000 and the CFO is paid about $191,000.
While Mirabito’s new base salary is below those of his peers in those cities, he will earn more than his peers in Memphis and Little Rock.
As reported by The Commercial Appeal, when the Memphis system hired a new leader last summer, it set his annual salary at a level comparable to that of his predecessor, who had been with the organization for about 49 years: $164,000. And in Little Rock, as reported by The Democrat-Gazette, the city’s transit chief received a 3% raise last year, bringing his annual salary to $123,600.
Mirabito, who came to CATS with no previous experience in public transit, was hired on an interim basis in May 2013 with an annual salary of $140,000. His pay was subsequently raised to $147,000 before his new contract was approved on Wednesday.
Aside from the $175,000 base salary, Mirabito will receive an additional $700 monthly payment to cover out-of-pocket employee expenses for employee benefits, as well as $60 each month to cover his cell phone bill. His new contract, which includes a pair of two-year renewal options after the initial three years, also provides for a maximum 5% annual raise. After the first year of the contract, Mirabito also will have the opportunity to earn an extra $12,500 per year if the CATS board develops metrics for incentive performance pay and Mirabito meets the requirements, according to the contract.
—Steve Sanoski
