The public has the right to know the entire compensation package for the Royal B.C. Museum’s CEO, who is also receiving $65,000 annually from the organization’s foundation, says Finance Minister Mike de Jong.
When funds from the Royal B.C. Museum Foundation are included, Jack Lohman’s compensation exceeds the total cap of $200,000, de Jong said Thursday in a statement.
“The additional $65,000 was not disclosed in executive compensation reporting. Rather, [the museum board] chose to note it in their annual financial statements, which did not provide the detail that the foundation is paying the CEO directly,” he said.
“I recognize that this is money not being paid through the provincial grant that the museum receives, but the public has a right to know the entire compensation for that position’s duties.”
This week, de Jong cut $53,000 from the provincial allocation to the museum after a supplementary contract with a $30,000 signing bonus, $18,000 relocation allowance, tax advisory services and travel upgrades came to light.
Lohman’s standard contract — approved by the Public Sector Employers’ Council, which regulates executive compensation — has a $161,800 base salary, plus benefits and pension, for a total of $197,331, just under the $200,000 cap.
The government says the secondary contract was not approved by the council, which saw it for the first time last month.
“I want to be clear that this is in no way a reflection of the quality of the individual in the position,” de Jong said. “This is about the organization not following appropriate process and the need to be accountable for that action.”
Lohman, recognized internationally for his work, was hired as the museum CEO in 2012, arriving in Victoria after serving as director of the Museum of London.
The non-profit Royal B.C. Museum Foundation is a separate organization and has its own board. Starting in the 2012-13 fiscal year, it has been paying Lohman $65,000 annually for fundraising.
Over the years, the fundraising function has moved between the foundation and the museum, said Cristi Main, the foundation’s executive director. “Neither side was effectively fundraising, and, of course, it was a large gap.”
The timing was right to have Lohman come on board, and a consulting service contract was created, Main said. The agreement was arranged independent of the museum. “It was a perfect opportunity to say, ‘This is one way to jump-start this process,’ and because of Jack’s international contacts, it was particularly effective.”
The agreement is a rollover contract at the same annual value, as long as Lohman is CEO, she said. Pauline Rafferty, Lohman’s predecessor, did not have a fundraising contract.
Meanwhile, John Williams, former museum board chairman, took aim at de Jong, saying the minister was “attempting to score cheap political points” and should apologize. Lohman is globally recognized for his expertise and the board has raised millions of dollars to replace reduced government grants, Williams said in an email.
Williams said he hired Lohman and arranged the pay package and there was no secret bonus. The museum’s CEO position is “grossly uncompetitive” when compared with other Canadian museums, said Williams, who called on de Jong to ensure competitive compensation.
Suromitra Sanatani, current chairwoman, said the board is “committed to transparency and accountability and will do our best to properly fulfil changing policy guidelines issued by the government.”
Lohman could not be reached Thursday.
