By Sally Apgar
Advertiser Staff Writer
The chief executive officer of Kamehameha Schools is getting a $50,000 annual pay increase for the next two years, according to documents the estate filed this week in Probate Court.
Hamilton McCubbin, who was hired to the newly created position a year ago, will receive $350,000 a year for the next two years, according to the court filing.
Kamehameha Schools spokesman Kekoa Paulsen said the pay raise was "negotiated when he was hired, and was programmed into his contract."
Paulsen said McCubbin’s salary was commensurate with what is paid to the heads of other large nonprofit organizations and educational institutions.
His salary was negotiated by the former interim board of trustees, based on the advice of an outside management consulting firm that analyzed the salaries of heads of large foundations, charities, large private schools and colleges. The salary is in addition to a housing allowance, car, moving costs and other benefits.
McCubbin was hired last January as the first CEO to be appointed in the 116-year history of the charitable trust established to support the Kamehameha Schools, which today educates children of Hawaiian ancestry. His anniversary date was Feb. 1.
In 1999 the Probate Court ordered the estate to adopt a CEO management structure, together with other organizational checks and balances, to safeguard the trust from what state lawyers said were the kind of managerial and financial abuses that occurred under the previous board of trustees. An interim board, which replaced the previous board in May 1999, hired McCubbin after a nationwide search. It was replaced by a permanent board earlier this year.
Under the court-ordered management structure, the CEO handles the day-to-day financial, legal and administrative affairs of the trust and reports to the board of trustees. The trustees set policies and establish long-term strategies from an arms-length position, a sharp contrast to the hands-on management style employed by the ousted board of trustees.
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