Gov. Gretchen Whitmer gave state health department director Robert Gordon 85 percent of his $182,000 annual salary to voluntarily leave the administration in January, an unprecedented payoff for a top state official to resign from a governor's cabinet.
The Michigan Department of Health and Human Services on Monday made public a separation agreement Gordon signed Jan. 22 that included $155,506.05 in compensation as well as COBRA health insurance payments to step down as Whitmer's MDHHS director in the midst of a once-in-a-century pandemic.
As a state senator, Whitmer was once critical of continuing to pay a top state official in former Republican Gov. Rick Snyder's administration "in lieu of any substantive work."
Gordon signed a confidentiality agreement to keep the reasons about why he was resigning a state secret. In exchange for the continued compensation, Gordon agreed to "fully and finally release all claims against" the state.
"In the interest of protecting deliberations among government officials, the parties agree to maintain confidentiality regarding Employee's departure from employment unless required by law to release such information," the agreement reads.
The agreement was signed by Gordon and Mark Totten, Whitmer's chief legal counsel.
Whitmer, a Democrat, has steadfastly refused to comment on why Gordon abruptly resigned on the same day he signed a public health order extending a late fall shutdown of Michigan restaurants and bars through the end of January.
"The only thing I think I could say is it's been a grueling couple of years and changes in administrations happen," Whitmer said Jan. 25.
Gordon's confidential agreement calls for the Whitmer administration to inform Gordon about public releases of documents referencing him under a Freedom of Information Act "when a determination has been made that all of the conditions have been met for the release of documents."
The agreement also says the state "will provide legal representation for (Gordon) in matters relating to actions taken ... while in the course of his employment and while acting within the scope of his authority."
The Detroit News first reported Monday on the existence of Gordon's separation agreement after discovering a reference to the document in MDHHS records obtained via a Freedom of Information Act request.
Crain's also filed FOIA request in the wake of Gordon's Jan. 22 resignation asking MDHHS for a copy of any separation agreement and three weeks worth of his emails related to his resignation. The agency has not yet produced those records for Crain's.
Whitmer's office sidestepped questions Monday asking about another instance of former officials being asked to sign a nondisclosure agreement and given nine months pay to resign.
"Executive separation agreements that include confidentiality terms and release of claims are fairly standard practice," Whitmer press secretary Bobby Leddy said in a statement. "Per the terms of the agreement, we can't comment further on a personnel matter."
Longtime state government observers and former officials contacted by Crain's could not think of another instance of a political appointee getting a six-figure payment to resign.
"I never even thought it was possible," said John Truscott, a former press secretary under Republican Gov. John Engler and CEO of Truscott Rossman, a Detroit-based communications firm. "This has never happened that I'm aware of and I've been around state government since 1987."
During the Snyder administration, former state Treasurer Andy Dillon stayed on the state payroll for two months at his $174,204-a-year job after he resigned as part of a transition period for his successor.
At the time, Whitmer was the Senate Democratic leader. She lambasted the Republican governor for letting Dillon — a former Democratic House speaker — continue collecting a paycheck after it was revealed he went on a Caribbean cruise while still technically on the state payroll.
"The Governor needs to stop trying to cover this up and come clean about the sweetheart deals and cronyism that is rampant in the Department of Treasury," Whitmer said in a February 2014 statement. "These people are supposed to be charged with improving the state's finances, not their own, and Michigan taxpayers deserve a thorough review of what is really going on with their money."
State Rep. Matt Hall, a Marshall Republican who sparred with Gordon during committee hearings over the Whitmer administration's response to the pandemic, said he was "shocked" the governor would "hide" reasons surrounding Gordon's resignation.
Hall said the Republican-controlled Legislature may need to put caps on severance payments "or eliminate them altogether."
"The Legislature needs to start asking questions about why the Whitmer administration thought this type of arrangement was appropriate," Hall said. "There must be more to this story and I think the taxpayers deserve to know what that is. And it certainly seems suspicious."
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