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JEA CEO Paul McElroy resigns, turning down contract extension during special meeting

JEA CEO Paul McElroy announced Friday that he would be turning down an extension to his contract, essentially resigning from his role with the utility company.

JACKSONVILLE, Fla. -- JEA CEO Paul McElroy announced Friday that he would be turning down an extension to his contract, essentially resigning from his role with the utility company.

McElroy made the announcement Friday afternoon during a special meeting with JEA’s board.

“It’s with deep and sincere regret we accept your resignation,” a board member said to McElroy in response to his decision.

As a result of McElroy's decision, JEA's current CFO Melissa Dykes was voted in as interim CEO until April 17, which is when JEA will have its next meeting.

JEA Board of Directors examined a transition services contract, which is not a severance contract but an explanation of how to complete his current contract.

Some of the details of the transition services contract for the CEO include that it deletes his duties of CEO but requires that he be available to help the new CEO at a later date.

The contract also explains tax consequences regarding McElroy’s pension plan. McElroy will retain economic benefits of his current contract, as well as a pro-rated portion of his incentive/bonus package.

Under the transition services agreement, McElroy will get to keep the JEA legal representation he has in current testimony before Jacksonville city council.

When asked by a board member is there was anything McElroy didn’t get in his transition services agreement, he said he wanted guaranteed attorney fees if he were to be sued in connection with his duties as JEA’s CEO.

Mayor Lenny Curry told First Coast News he was not expecting this decision made by McElroy today and released the following statement:

"We appreciate his years of service and dedication to the citizens of Jacksonville. As Mr. McElroy opts to step down, we have full confidence that the board will select an executive to move this asset forward."

The leaders of JEA Represented Employees union released the following statement in reaction to McElroy's departure:

"It is an interesting turn of events with Paul McElroy stepping down as JEA's CEO. This is a decision that was left up to Paul McElroy and the JEA board. The JEA Unions had no control over this decision. All of the JEA Unions look forward to a positive future for JEA and the City. The Unions stand on their joint statement #1 that the privatization of JEA would be harmful to the City of Jacksonville and to the JEA Customers."

Stay with First Coast News as we continue to follow this developing story.

Read his full letter of resignation below:

At this afternoon's special JEA Board Meeting, Paul McElroy read the following statement:

Mr. Chairman, JEA Board Members,

Thank you, and all the previous Board members I have had the honor of serving.

I also want to thank you for demonstrating your continued confidence in my leadership by offering a two-year extension to my current employment agreement.

Over the past five-and-a-half years, together, with your support, along with the great JEA team we have accomplished a great deal and created significant value for our community.

Yet, it is important to recognize that all large organizations move in cycles which require different leadership strengths and styles. My leadership strengths are building great, high performing teams, to strategically plan and execute upon a vision, leading to extraordinary value creation. The path forward for JEA, at least for the next period of time calls for a different set of leadership skills, not better or worse, just different.

Over the past five months I have given careful consideration to a contract extension and have concluded it is simply not in the best interest of the parties, me personally and professionally, my family or the community to extend the contract. I believe today is the appropriate time to begin the leadership transition process.

To the senior leadership team, thank you, it has been a great experience for me to work with you. During my career I have had the opportunity to lead many high-performance executive teams - simply stated you are the best team I have had the honor of leading.

To my fellow JEA employees, thank you for your passion to service and commitment to being vital partners in advancing our community, you are the soul of JEA and you make JEA great. Together, over the past five-and-a-half years we accomplished many great things:

  • JEA's contribution to the City's general fund is at an all-time high;
  • Customer bills are significantly lower;
  • Residential Customer Satisfaction is up 74 percentage points, approximately 1,800%;
  • Business Customer Satisfaction is up, placing #1 in the country in 2016;
  • CO2 emissions will be down 45% in 2024, our strategy of working diligently and opportunistically to change our power supply system is paying off (natural gas, energy efficiency, SJRPP, solar and yes, Vogtle);
  • "Our River" is healthier, with plans to make it even healthier;
  • Debt is down by $2.0 billion, and our credit ratings are better;
  • All systems are more reliable, including jea.com and our mobile applications;
  • We successfully recovered from two major hurricanes, within 12 months.

It's been a very busy and productive five-and-a-half years leading to a significant increase in JEA's value.

I look forward to working with you, at your request and direction, to assist in the transition.

Personally, seventeen years ago, Linda and I made the decision to settle in Jacksonville and raise our children and my 16 years at JEA has provided the opportunity to do this. It has been very rewarding, two high school graduations, two four-year college graduations, one hurricane-wedding, two grandchildren and today, Linda and I are age-appropriate healthy. As we begin to write a new chapter in our lives, I wish you and the JEA family all the best.

Thank you Mr. Chairman.

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