The board of Salem-based SAIF Corp. has awarded a $200,000 bonus to the company’s president, aiming to shift compensation additional in line with other insurers close to the U.S.
Chip Terhune, who became SAIF president in July 2021, also got a 4% pay raise. That moves his base wage up to $540,800 and additional a reward for 2022 operate of $223,333.
With the mixed payment of $764,133, Terhune would make about 7 instances what is compensated to Gov. Tina Kotek.
“We are conscious of the optics,” explained Krishna Balasubramani, a SAIF board member who led its payment committee. “He operates in form of a non-public globe, location rates, handling promises. He’s even now a public servant.”
SAIF is a condition-chartered company that is the major provider of workers’ compensation insurance policies in Oregon, covering about 54,000 enterprises. Its board is appointed by the governor.
SAIF officials said the shell out adjustment for Terhune was based on an independent assessment of govt pay back at similar insurance firms.
The consultant’s report claimed Terhune’s 2022 pay was 13% lower than the ordinary. The report explained that other CEOs received a reward equivalent to an average of 60% of their pay back. The SAIF Board set Terhune’s new reward at 40% of his pay back.
Terhune was named SAIF president in July 2021. He was paid out $217,949 in salary and a $76,282 for that partial calendar year.
Balasubramani pointed out business functions are not funded by Oregon taxpayers.
Terhune arrived to the organization from Medecision, a Texas-based wellbeing treatment technology organization. He formerly served as vice president for Cambia Overall health Methods, general public affairs director for Schnitzer Metal, and as an executive with the Oregon Education Association, the condition lecturers union. He previously was chief of personnel for Gov. Ted Kulongoski.
The compensation package deal was authorized unanimously by the SAIF Board. Aside from Balasubramani, administrators are John Mohlis, a former union government now with Gallatin Public Affairs in Portland Tammy Baney, govt director of the Central Oregon Intergovernmental Council in Bend Johnell Bell, chief executive officer of the Portland general public affairs company Espousal Techniques and Hans Bernard, a federal government affairs director for Nike in Beaverton
Balasubramani claimed the board did not take into consideration the financial efficiency of other businesses in comparison to SAIF as it evaluated Terhune’s compensation.
SAIF reported an working gain of $58.7 million for 2022 as opposed to a $47 million working decline the year right before.
He also stated the board had not proven efficiency steps for Terhune.
SAIF, headquartered in Salem, employs about 1,000. The enterprise awarded staff members merit raises averaging 3.7% for 2023, in accordance to a enterprise spokeswoman.