McGavick slams Democrats' claims
Thursday, April 27, 2006 6:51 AM PDT
By Don Jenkins
Printable version
E-mail this articleAllegations by Democrats that his "golden parachute" from Safeco Corp. violates federal election laws are "BS," Republican senatorial candidate Mike McGavick said Wednesday in Longview.
"It's all BS," he said. "And it's the kind of partisan garbage that people are so sick of."
Washington State Democrats filed a complaint Wednesday with the Federal Elections Commission alleging that McGavick received an artificially sweetened deal when he resigned as Safeco chief executive to run against U.S. Sen. Maria Cantwell.
Democrats charge that McGavick essentially received an estimated $17 million after he stepped down as CEO and that the compensation package violated prohibitions against making contributions for a candidate's personal use, .
The "golden parachute makes a mockery of campaign-finance laws," state Democratic party chairman Dwight Pelz said.
McGavick said he earned his pay at Safeco and sacrificed millions in deferred compensation and future earnings to run for the Senate.
"They're blowing this out of proportion for a specific reason," he said. "They're trying to make things that Safeco did in Safeco's own interest look otherwise, and it's not going to work."
McGavick was in Longview as part of a tour of the state to highlight an endorsement he received from the U.S. Chamber of Commerce. About a dozen people came to meet him at the Ramada Limited.
"This is one heckuva candidate," said Renee Sinclair, the U.S. chamber's Northwest director. "I wish all candidates were like Mike."
Afterward McGavick said the millions he received in executive compensation won't turn off voters.
"The average person in this country admires success and wants people to represent them who are successful," McGavick said. "And the fact is, yes, I was well compensated because I was successful."
According to company statements, McGavick's compensation totalled $8.44 million in 2005, including a $2.3 million bonus he received in February based on the company's performance during the previous year.
"I am angry and every American should be angry at these CEOs who make money when they're not successful. That makes us all crazy, but unlike those folks, I doubled the value of Safeco while I was there," he said.
"I am proud of what I achieved at Safeco. And people understand that you're well rewarded when you lead that kind of success."
McGavick began touring the state last summer as a potential challenger to Cantwell. In October, he officially announced his candidacy and stepped down as Safeco CEO on Dec. 31.
During January and February, he provided what the company described as "transitional services."
The company paid him a salary of $16,666 for the two months. Plus, the company speeded-up vesting McGavick in $3.3 million worth of stock because he agreed to help with the transition and not work for another insurance company for three years.
McGavick said that if he doesn't win a Senate seat, he will have signed away three years that he could have been making $7 million a year as an insurance executive.
"I sold $21 million of my labor potential for $3.3 million," he said.
In their complaint, Democrats value the stock at $4.5 million and say that extending McGavick's employment by two months qualified him to become vested in another $12.7 million worth of stock options.
McGavick said that during January and February he advised Safeco's new CEO and approved the company's financial statements for 2005.
"It was my responsibility to testify to (the accuracy) of those numbers," he said. "That's a big deal and a very serious undertaking, and I completed it."
In financial disclosures filed last year, Cantwell reported assets between $3.4 million and $7.4 million. She spent $10 million of her own fortune, made at an Internet-media company, on her 2000 campaign to unseat Slade Gorton.
McGavick worked for Gorton as the senator's chief of staff.
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