StarBulletin.com

Committee Shelves Trustee Pay Cut Bill


By

POSTED: Sunday, March 07, 2010

A bill to cut in half the commissions of Bishop Estate trustees was shelved yesterday by the state Senate Judiciary Committee.

Chairman Anthony Chang said his committee didn't have enough information, such as the history of legislative action involving trustees' commissions.

“;It goes all over the place,”; Chang said.

The bill would have limited commissions of trustees of charitable trusts that take in more than $1 million in revenues a year. Bishop Estate trustees earn about $214,000 a year, and the bill would have cut it to about $100,000 a year.

There is some question whether the trustees should be paid salaries similar to top corporate executives, Chang said. He also said he wants to go over Princess Bernice Pauahi Bishop's will to see if she anticipated how much money the estate would eventually bring in.

Rep. Donna Kim, a supporter of the measure who attended the Senate hearing on the bill, said, “;I'm glad to see it got a hearing in the Senate, but disappointed it wasn't heard in the House.”;

House Speaker Henry Peters became a Bishop Estate trustee last year.

“;I think it makes it difficult,”; Kim said, “;Many members (of the Legislature) may not want to do something that will directly affect him (Peters).”;

The measure also would have eliminated from consideration in the calculation of trustees' pay about $8 million in real property taxes collected by Bishop Estate from commercial lessees.

Such collections aren't “;revenue generating,”; Kim said, adding that the estate actually loses money in paying real property taxes. The trustees should be paid a fair salary, but if the statute isn't changed, they could be earning $500,000 a year because of increased revenues from leasehold conversions, Kim said.

The estate should have “;maximum use of its revenues for the kids”; who attend Kamehameha Schools, she said.

In referring to the trustee's job, Kim said, “;It's gotten to be a political plum.”;

“;We want people who want the job and who are qualified.”;