File photo by Howard Owens.
There will be no political considerations in the search for new executive leadership of Western Regional Off-Track Betting, said Board Chairman Dennis Bassett on Friday afternoon in an interview with The Batavian.
The Batavian asked about political considerations in searching for a CEO to replace Henry Wojtaszek. We asked if there will be a background check on candidates' voter registration or if candidates would be asked to disclose if they are members of a political party.
"I can say, unequivocally, they will not," Bassett said. We are looking for people who can take Western OTB to the next level. Henry Wojtaszek is on the right side of the aisle, and I'm on the left side of the aisle. I have the utmost respect for Henry Wojtaszek and the way he ran this organization. We're looking for solid business people."
At the June board meeting, the majority of board members backed a resolution to provide severance packages to Wojtaszek, CFO Jackie Leach, and VP of Operations William White. This is essentially a buyout of contracts that will terminate their employment before the previously negotiated employment contracts expire.
Bassett became chairman of the board in October for a four-year term after the state legislature approved a bill terminating the board members at the time and giving greater voting power to the representatives from Monroe, Niagara, and Erie Counties, relegating the rural counties to minority status on the board.
There are 17 municipalities, including Genesee County, that co-own the OTB and receive revenue from the gaming operation's profits. The operation includes harness racing and video lottery terminals at Batavia Downs and remote facilities where race fans can place bets.
"There are a number of municipalities that need Batavia Downs to be successful," Bassett said. "I mean, their budgets need for us to continue to generate revenues for them so we can help them do things that they would like to do in their own municipalities. They are not interested in us playing politics. They need for us to make good business decisions. As long as I'm the board chair and I will be chair for the next three and a half years, we are going to look at the right business decisions and how we can move this organization forward. And that's not going to be politically motivated."
Bassett has selected the executive search committee, and the members represent a balance between urban and rural municipalities.
The members are Mike Horton, Steuben County; Mark Burr, Cattaraugus County; Ed Morgan, Orleans County; Elliott Winter, Niagara County; and Dennis Bassett, city of Rochester.
The committee will meet soon to establish the qualifications and experience they seek in a new CEO.
"I have been a part of several high-level searches of senior executives in my 51 years in corporate America and on boards outside Western OTB, and I think we are capable of conducting a national search in a very timely and effective manner," Bassett said.
Bassett suggested that politics played a role in buying out Wojtaszek's contract.
Wojtaszek has been singled out by political opponents in Niagara and Erie counties, most notably former State Sen. George Maziarz, who was once passed over for the CEO job.
Several controversies have surrounded Western OTB in the past few years, including questions about health care insurance for OTB board members, the accounting of VIP tickets for sporting events in Buffalo, and Wojtaszek's use of a take-home vehicle.
The newest controversy involving Wojtaszek is the severance package he, Leach and White received. An online news source in Buffalo published a one-sided report that apparently wasn't fact-checked, quoting Erie Democrats alleging the severance packages were illegal.
Bassett also addressed these latest allegations in his interview with The Batavian.
Reading from a statement prepared by OTB Attorney Terry Connors, Bassett made three points:
- The allegations were based on a reading of NYS Public Authority Law Section 43-A, which deals with severance packages for at-will employees of public authorities and limits the payout of any severance to three months of salary. The law, he noted, explicitly excludes entities such as Western OTB that were not created under that statute.
- Western OTB is a public benefit corporation organized under the NYS Racing, Pari-Mutuel Wagering and Breeding Law;
- So, the Public Authority Law does not apply to Western OTB and severance payouts.
"The severance pay limits only apply to employees under Chapter 43-a," Bassett said. "The same is true of Henry Wojtaszek. As such, the New York State Severance Pay Limitations Act does not apply to Mr. White Miss Leach, or to Mr. Henry Wojtaszek."
State law and prior case law, notably Civil Service Forum vs. New York City Transit Authority, a 1957 case, gives government entities in the state, such as authorities and public benefit corporations, the ability to operate as any American corporation would, offering competitive benefits, perks, and incentives to employees and board members, and to do "all things necessary or convenient to carry out its purpose."
The court found that "unlike other agencies performing government functions, (it) is required to run the transit system like a business, in that its facilities must be operated on a self-sustaining basis. Recognized business practices should be permitted."
This is also why the health care benefits once provided to board members were not illegal.
The severance packages to Wojtaszek, Leach, and White:
- Wojtaszek will leave his job on Dec. 31. In exchange for foregoing the remaining time on his contract, he will receive a full year's salary. He must also agree not to take a job or engage with any other entity in the gaming business through 2026.
- Leach will leave her position after her sick, vacation, and compensation time, if any, in early spring 2025. She will remain on-premises through Jan. 31, 2025, and will split time between home and office in February. She will be paid half her annual salary for the remaining time on her employment contract.
- White will continue working through April 30. He will use up any remaining sick leave and vacation time at that time. He will receive half of a full year's salary.
Bassett said these severance packages are right in line with common business practices in corporate America.
"I would say that, in my 51 years of corporate America, this is (in line with standard business practice)," Bassett said. "What a business is trying to do is, we're talking about an individual, these individuals, who were really a part of a very successful business. And right or wrong, we are trying to move the needle forward in a positive manner. And I would be less than honest if I didn't say that, yes, politics gets in the way of that. But we are running this organization. As long as I'm on the board, we will run it as much like a business as we can. I felt, and I convinced the board, that it's important for us if we're going to face the challenges of tomorrow, we need to move forward with new leadership. We and we rewarded, or we didn't reward. Yes, we did (reward). We addressed situations of people who were very successful in helping this organization go to the next level. Over the last two years, we had record earnings."
