Thursday , 24 May 2018
Jason Gray
Jason Gray

Former City Manager Gray to Receive 12 Months Salary as Severance

The end of Jason Gray’s tenure as city manager of McKinney may have been contentious, but he’s not leaving McKinney empty-handed. Gray is getting a hefty payday on his way out of town. According to Gray’s separation agreement signed by both Gray and Mayor Brian Loughmiller and obtained by, Gray received a full year’s salary and benefits as part of his severance package.

Gray’s employment agreement, signed less than five months ago, listed his yearly salary as $191,000. Gray signed the employment agreement after receiving a mixed review from the city council in November. As part of the review process, Gray asked for a $60,000 raise to increase his salary to “market average.” Gray was not given a raise, but was given a $10,000 performance bonus. Per Gray’s severance agreement, signed last Tuesday, March 4, Gray was paid the equivalent of 12 months salary and benefits in one lump sum on or before March 7.

Gray, who announced his resignation Feb. 24, will also continue to receive his “non-compensatory” benefits package. That package includes health insurance, dental and vision insurance, and life insurance, for a period of no more than 12 months. If Gray obtains employment in the next 12 months, he will no longer receive benefits from the City of McKinney.

Loughmiller told TSB that Gray’s contract “allowed for 12 months severance based on his length of employment.” As part of Gray’s yearly review in 2013, Gray listed his total compensation, including benefits, for the year as $206,275.

As part of Gray’s separation agreement, Gray, the city of McKinney and the city council members also agreed to a mutual non-disparagement clause for a period of three years.

Loughmiller told TSB that the city council voted unanimously to authorize him to execute the separation agreement with Gray. The last page of Gray’s separation agreement has a line for each city council member to sign the agreement. Only Don Day and Geralyn Kever signed the agreement. Loughmiller signed the agreement on the previous page as official representative of the City of McKinney.

Mayor Pro Tem Travis Ussery, Randy Pogue, and Roger Harris’ signature lines are blank. Ray Ricchi’s signature line has an “X” marked through it. Loughmiller told TSB, “The execution by council members only relates to the disparagement clause and is not an indication that council members were opposed to the

Jose Madrigal
Jose Madrigal

remaining terms of the agreement given that the vote was 7-0 to authorize execution based on all of the terms outlined in the agreement including the right for council members to sign or not sign the agreement.”

During a closed, executive session meeting Feb. 28, the council members passed a resolution granting Deputy City Manager Jose Madrigal “the ability to act with authority under Section 28 of the City Charter while we (the council) continue to discuss the interim city manager transition plans,” Loughmiller told TSB.

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