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Lawyer: Ousted JEA CEO Aaron Zahn Agreed To Reduced Severance Terms That Expire Friday

Pictured: Former JEA General Manager & CEO Aaron Zahn
Jacksonville Daily Record
Former JEA General Manager & CEO Aaron Zahn

In a letter sent Jan. 13 to the city Office of General Counsel, former JEA CEO and Managing Director Aaron Zahn’s attorney contends that on Dec. 30 Zahn accepted the severance terms presented by JEA’s board of directors on Dec. 17.

That was the day the board fired Zahn. The letter is from John Mullen with Phelps Dunbar in Tampa, according to WJCT News partner the Jacksonville Daily Record.

It also states that since the board has not acknowledged Zahn’s agreement to “forego most of the contractual benefits” in his employment agreement with the utility, “Mr. Zahn’s personal and professional reputation are being publicly harmed by unfounded and categorically false accusations in the media.”

The board voted 5-1 to terminate Zahn “without cause” and placed him on administrative leave, paid at $10,000 a week, until the terms of his severance are settled.

The board also voted to offer Zahn an amended settlement package that would reduce the amount of the “without cause” termination settlement required in his contract.

Zahn’s contract calls for $842,925 in payments in the event of termination without cause. That includes 20 weeks of pay, based on his annual $520,000 salary; a 12-month consulting contract worth $634,000; and COBRA insurance payment benefits.

An expanded version of this story is at JaxDailyRecord.com.