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Saturday, May 15, 2004



Ex-schools chief got $1M

The package gave former KSBE
official McCubbin more than
$500,000 in benefits


Former Kamehameha Schools Chief Executive Hamilton McCubbin, who resigned under fire last year, received more than $1 million from the trust last year.

In its annual Form 990 tax filings with the Internal Revenue Service, Kamehameha Schools said it paid McCubbin $493,586 in base salary during its fiscal year ending June 30, 2003.

The $6 billion charitable trust also paid McCubbin $353,253 in severance and other benefits and $181,541 in housing allowances, health insurance and other expenses.

McCubbin's 2003 package rivals the $1 million a year that the estate's former trustees Henry Peters, Richard "Dickie" Wong, Lokelani Lindsey, Gerard Jervis and Oswald Stender paid themselves during the late 1990s trust controversy.

McCubbin could not be reached, and the estate declined comment on McCubbin's compensation, saying it was a personnel matter.

McCubbin, a 1959 Kamehameha Schools graduate, became the 120-year-old estate's first chief executive officer in February 2000. He abruptly resigned in May 2003 after the estate's five-member board investigated allegations that McCubbin had an inappropriate relationship with a female staffer.

The resignation came three months after McCubbin had negotiated a new, three-year contract in February 2003. McCubbin earned about $350,000 in the year ending June 30, 2002.

The estate's tax filings did not list the annual salary for the estate's current chief executive, Dee Jay Mailer, who assumed her post in January. But it did include pay figures for the estate's top executives and former officers. They included:

» Former Chief Educational Officer Dudley "Skip" Hare, who was paid $743,214 in fiscal year 2003. Hare stepped down in January 2003, and his compensation package included salary and severance.

» Kirk Belsby, the estate's vice president for endowment, earned $243,027 last year. Belsby assumed his new post in January 2003 and the amounts paid to him during the 2003 fiscal year represent a portion of his annual compensation rate.

» Michael Chun, headmaster of the Kamehameha Schools' Kapalama Heights campus, received $207,074.

» Stan Fortuna, headmaster of the Kamehameha Schools' Hilo campus, received $227,281. Rod Chamberlain, headmaster of the Kamehameha Schools' Maui campus, received $218,614.

Fortuna and Chamberlain earned a base salary of about $166,000 each, but both received about $40,000 in additional allowances that boosted their overall packages.

» Colleen Wong, the estate's vice president for legal affairs who served as the trust's acting chief executive officer after McCubbin's departure, earned $206,060.

» Former trust Chief Operating Officer Eric Yeaman received $201,997 in 2003. Yeaman left the trust in December 2002 to become Hawaiian Electric Industries Inc.'s chief financial officer.

» Darrel Hoke, the trust's internal auditor, was paid $188,501, while Dick Lau, the estate's human resources director, earned $181,401. Mike Loo, the trust's vice president for finance and administration, earned $164,023.

» Trustees Diane Plotts, Robert Kihune and Nainoa Thompson were paid $91,500 last year. Board Chairwoman Constance Lau received $104,000, while former Chairman Douglas Ing received $101,000. Trustees pay is set by the state Probate Court.

Established by the 1884 will of Princess Bernice Pauahi Bishop, the Kamehameha Schools is a nonprofit trust that educates children of native Hawaiian ancestry. It also is the state's largest private landowner with more than 300,000 acres in Hawaii.

For the 2003 fiscal year, the estate said it earned $137.5 million on revenues of $338.6 million. Expenses for the year totaled $201 million.

The estate said its biggest outside vendors were local architecture firm Group 70 International, which was paid more than $5.3 million, and the accounting firm of Karns Murakami & Hanashiro, which received $1.2 million for tax and consulting work.

The Washington, D.C., law firm Miller & Chevalier billed the estate $890,722, and Hogan & Hartson LLP charged $623,767. Both firms worked on tax issues and efforts to defend the Kamehameha School's Hawaiians-preference admission policy.

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