Former JEA CEO and Managing Director Aaron Zahn remains on administrative leave because no agreement was reached on amending his employment contract language as of the close of business Dec. 30.
On Dec. 17, the JEA board placed Zahn on paid administrative leave for seven business days. The board directive gave attorneys until Dec. 30 to amend his employment contract language.
Zahn’s termination will be effective on the date the contract is amended.
“As of close of business today, no agreement has been reached with Aaron Zahn. He remains on administrative leave until further action has been taken by the JEA Board of Directors,” said JEA Media Relations Manager Gina Kyle in a statement emailed to media at 7:18 p.m. Dec. 30.
The JEA board fired Zahn without cause. A motion by board member Henry Brown instructed the city’s Office of General Counsel to negotiate with Zahn’s private attorney to reduce his severance pay.
Zahn’s employment contract calls for $842,925 in payments in the event of a termination without cause. That includes 20 weeks of pay, a 12-month consulting contract worth $634,000, and COBRA insurance payments.
The Office of General Counsel reminded the board Dec. 17 those payments could increase to about $1.36 million if JEA is sold to a private utility, but the board met Dec. 24 to cancel the invitation to negotiate.
Brown also wanted to reduce Zahn’s consulting contract from 12 months to one month, reducing that part of the payout to about $52,800.
Board Chair April Green advocated for Zahn’s termination with cause, stating she feels the CEO misled her and the board on several issues. That included a Long-Term Performance Unit Plan that could have cost JEA up to $600 million if the utility were to be sold.
She said Dec. 17 she was concerned that an investigation into Zahn could uncover more misconduct. The board authorized the Office of General Counsel to move forward with that investigation.
Zahn’s lawyer, Jacob Peek with the Peek & Miska firm, told board members Dec. 17 his client was willing to continue to negotiate.
Chief Operating Officer Melissa Dykes was named interim CEO.
Mayor Lenny Curry nominated Zahn to the JEA board in January 2018. City Council confirmed him in February.
He resigned that position and was named interim managing director and CEO on April 17, 2018, to replace Paul McElroy, who resigned.
On Nov. 27, 2018, the board voted unanimously to make Zahn permanent JEA CEO.