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Advisory opinion regarding whether Senator Dan Morrish, a member of the Louisiana Citizens Property Insurance Corporation Board of Directors, may resign from the Senate and the Corporation to apply for the Chief Executive Officer's position with the Corporation. |
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Dan Morrish is a member of the Louisiana Senate. He serves as the Chairman of the Senate Committee on Insurance. In such position, he also serves as a member of the Board of Directors for the Louisiana Citizens Property Insurance Corporation (Corporation). Recently, the Chief Executive Officer (CEO) of the Corporation submitted his letter of resignation. Senator Morrish would like to apply for this position.
The position of CEO is hired by the Commissioner of Insurance. The Commissioner has hired a head hunting firm, IPS Search, to help in the process. Further, the Commissioner intends to use committees to help in the process as well; and two members of the committee will be board members of the Corporation. The CEO may have an employment contract. The two past CEOs have had employment contracts between the Corporation and the CEO with Commissioner Donelon signing as an authorized agent of the Corporation. It appears that the new CEO will have an employment contract; however, Commissioner Donelon and the CEO will be the parties to the contract. The new contract has not been drafted. The CEO is a W-2 employee.
The CEO job description was initially established by the Commissioner; however, any changes would be made by the Corporation. The 2010 job description states that the CEO is engaged by and serves at the pleasure of the Commissioner. The CEO is responsible for the day-to-day management of the Corporation and reports to the Corporation. The position directly oversees the Corporation's senior management team, directly or indirectly supervises all Corporation personnel and activities, and exercises complete administrative authority and responsibility over all Corporation personnel and departments. The CEO coordinates with and reports to the Corporation on significant matters. The CEO promulgates management's goals in accordance with direction from the Corporation.
The Commissioner of Insurance sets the salary for the CEO; however, the Corporation approves the compensation package and pays the salary. If the Corporation is unhappy with the CEO, the Corporation can meet with the Commissioner to relay its concerns and the Commissioner can take such concerns under advisement; however, the Commissioner retains the authority to hire and fire.
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La. R.S. 42:1121A(1) prohibits a former agency head, for a period of two years following the termination of his public service as the head of such agency or as an elected public official serving in such agency, from assisting another person, for compensation, in a transaction, or in an appearance in connection with a transaction, involving his former agency or rendering any service on a contractual basis to or for such agency.
La. R.S. 42:1121A(2) prohibits a former member of a board for a period of two years from contracting with, being employed in any capacity by or being appointed to any position by his former board.
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Adopt proposed advisory opinion.
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| Assigned Attorney: |
Tracy Barker |
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