Courtesy photo

Nat Ford

The San Francisco Muncipal Transportation Agency did not have to give Nat Ford $384,000 -- a year's salary plus $75,000 -- for leaving his job as Muni's Chief.

According to Ford’s contract, he is owed a year’s salary plus unpaid benefits only if he is fired. But Tom Nolan, Chair of the SFMTA board, has said repeatedly that Ford was not fired – and that Ford's departure was a mutual decision.

Asked if the SFMTA was legally required to pay Ford a severance, Nolan said “No, we didn't [have to pay it].”

Nolan said that legally the SFMTA owed Ford deferred compensation and benefits, which would have totaled around $75,000.

So why give Ford $308,000--his annual salary and the highest salary paid to any city employee--on top of the $75,000?

Nolan said that there were two reasons for the deal: Ford deserves the money because “he's done a very good job under extremely difficult circumstances” and because “in the long term its better to settle the uncertainty” to avoid any possible litigation.

Tyler Paetkau, a labor lawyer with Hartnett, Smith & Paetkau, said that in these situations an executive like Ford can raise the possibility of a lawsuit to extract a severance package. “From the employees perspective, their leverage is they can be difficult and make it expensive.”

Nolan said negotiations with Ford never came to talk of lawsuits but he said, “If we kind of forced him out, people can sue for anything.”

Ford also could have refused to go, in which case the SFMTA would have had to pay about the same amount that they are proposing to pay him for leaving.

By paying Ford $384,000, Paetkau said that the SFMTA is trying avoid litigation, but “the risk is that they get characterized as giving a bad leader a golden parachute.”

The rich severance package has outraged Muni riders who have seen service cuts – and hikes in parking fees --because of budget shortfalls. Angling for votes in the upcoming mayor’s race, State Senator Leland Yee has started a petition to stop the SFMTA board from paying Ford, saying the money could be spent on 20,000 fast passes for seniors and youth.

The board is expected to discuss, then approve Ford's severance package on Tuesday at its regular meeting, which will no doubt be a well-attended event.