A week later, prominent businesswoman and former Hawai'i first lady Vicky Cayetano walked away from her newly created post as volunteer chief executive officer amid rumors she had clashed with Bloom and executive board Chairwoman Carolyn Berry.

That was followed in quick succession by the resignations of two influential board members: former Bank of Hawai'i CEO and major donor Mike O'Neill and Honolulu Advertiser president and publisher Mike Fisch.

"There are people who really appreciate the symphony who are really worried," said Nelson, 78. "(The departures) signify that there's some trouble. There's been a lot of gossip."

Like her mother before her, Nelson is a faithful symphony subscriber. In the 1940s, when the symphony was still an all-volunteer outfit, she even played in the orchestra. Now, however, she and other classical music lovers are concerned that the current situation could lead to a silent Blaisdell Concert Hall.

"We went through a sad period 10 years ago when the musicians went on strike," Nelson said. "I fear something like that might happen again.

"I just wish they would clear it up, even if the news isn't good news."

Bloom maintains he resigned to pursue opportunities outside of orchestra management.

Musical director Samuel Wong resigned from the Honolulu Symphony last June, and a search to find his replacement continues. Wong, who has led the symphony since 1996, will become the symphony's "conductor laureate" for the next season. Advertiser library photo • 2004

"I don't want to hurt the symphony but I think it's important for people to know what's going on," Cayetano said. "People in the community who love music should take an interest in the symphony and there are important questions that need to be asked."

Berry and Bloom paint Cayetano as a leader who alienated management and staff and who along with musicians and other board members sought to replace Bloom with hired consultant Peter Pastreich.

One thing most agree on is the need to keep the symphony alive, for the sake of the community and for the musicians who have sacrificed much to keep the music going.

In 2003, the musicians agreed to an across-the-board 20 percent pay cut (along with symphony management and staff), a reduction in benefits and a shortening of the performance season to 30 weeks. At the time, the musicians were making a base salary of $30,345 for a 34-week season. The musicians are bound to a no-raise agreement for next season, but are eligible to renegotiate their contract for 2006-2007.

By accepting the cuts the musicians averted a strike and allowed the symphony to collect on three pledges totalling $2.1 million — including $1 million from O'Neill — that were contingent on an agreement.

The cost-cutting seemed to herald a new effort to apply finance-management practices to an organization that in the past has relied heavily on a small circle of insider benefactors. At the urging of the musicians, the symphony has explored ways to broaden and diversify its funding base and to market itself in ways that better engage the community.

This year's 2-for-1 ticket sale on select performances took in approximately $60,000. The symphony has also instituted a plan-giving program encouraging supporters to make legacy donations to the symphony in their wills, an effort that has brought in 21 donors so far.

Bloom's contention that the symphony is in stable financial condition is supported by last year's financial returns, which showed a $68,000 surplus — the first surplus since 1990. Bloom said the symphony is within 4 percent of its $6.3 million operating budget this fiscal year, which ends in June.

Matt Catingub conducts the Honolulu Symphony in a rehearsal. Musi-cians averted a strike in 2003 by accepting 20 percent pay cuts. Advertiser library photo | Oct. 30, 2003

The Honolulu Symphony is categorized (on the basis of its operating budget) as a "Group 2" symphony by the American Symphony Orchestra League. Last year, only six of 20 Group 2 orchestras ended with a deficit, a significant improvement over two years ago when, Bloom said, "the reverse was probably true."

Yet, as Bloom points out, there are significant differences between the Honolulu Symphony and its Group 2 peers.

The Honolulu Symphony's endowment is $5.5 million, compared to an average of $16.6 million for other Group 2 symphonies. Symphonies typically use the interest drawn from endowments to help cover expenses in difficult times.

The average Group 2 symphony also collects $641,000 in government funds; the Honolulu Symphony takes in about $300,000, according to Bloom.

Compounding the financial situation, the city is considering raising the rent at the Blaisdell Concert Hall (the symphony's home venue) from $500 per day to $1,800 per day. Bloom said the city also wants to amend its contract so it could bump symphony dates in favor of productions that earn the city more money.

Such economic challenges have prompted arts organizations around the country to borrow stricter financial management strategies from the business world or even recruit business executives to run their operations.

Gideon Toeplitz, who is expected to be named interim executive director of the Honolulu Symphony, previously served as managing director and executive vice president of the Pittsburgh Symphony Orchestra. When Toeplitz resigned in 2002, the Pittsburgh Symphony was in such dire economic straits that the symphony seriously considered breaking with tradition and hiring a business executive to replace him. A budget deficit of nearly $3 million and a severe drop in its endowment value — related to the stock market slump — eventually led to staff cuts and a pay cut for its musicians. The symphony eventually hired Lawrence Tamburri, a musician with a master's degree in business administration, for a position re-defined as president, managing director and chief executive officer.

The clash of traditional symphony management and more formal business practices appears to be at the heart of the Honolulu Symphony's controversy.

Late last year symphony musicians, concerned about how the symphony was being managed, lobbied management to hire former San Francisco Symphony executive director Peter Pastreich as a consultant to look into the symphony's management and operations. Cayetano said concerns were raised about Pastreich's fee, but a board member offered to cover the cost himself. O'Neill confirmed that he agreed to cover the cost of hiring Pastreich as a consultant.

"I did my due diligence and I found him to be direct, thoughtful and very experienced," O'Neill said. "He wasn't one to gild the lily. He's savvy and thorough and he wasn't going to take sides."

Pastreich spent more than a month interviewing board members, staff and musicians and giving verbal feedback to the board's executive committee. Pastreich identified Berry's close friendship with Bloom, and Bloom's lack of involvement as executive director as key concerns.

Bloom said he was unaware of any criticism from Pastreich and pointed to the symphony's financial recovery as evidence that his friendship with Berry has not interfered with symphony operations.

The board followed through on Pastreich's recommendation that a CEO position be created to oversee the executive director (Bloom) while reporting to the board chair (Berry). Several other symphonies around the country also have CEO positions, including Houston and Phoenix.

With her extensive business experience, Cayetano was seen as a good fit for the new position. Cayetano said she began making plans as soon as she got the nod from the executive committee, in part because the end of the fiscal year was approaching and an operating budget had not yet been drawn.

Cayetano met the executive committee on May 11, the staff on May 19 and with Bloom on May 20.

"I stated (to Bloom) that I was not there to do his job, but to assure that the job would be done and that we would be more accountable and transparent as an organization," Cayetano said. "I felt when he left that he was willing to work together."

A week later, Bloom informed Berry he was resigning.

Cayetano recommended Pastreich be named interim executive director and, she insists, the executive committee approved the move. "But then later they reversed themselves and said they had not approved him," Cayetano said.

Berry, in an e-mail statement to the Advertiser, said the committee rejected Pastreich because the organization could not afford his compensation, which was to have been $35,000 per month plus transportation, housing and expenses. The symphony is under contract to pay Bloom's salary, more than $130,000 annually, through August. Toeplitz made $300,000 a year with the Pittsburgh Symphony.

However, multiple sources confirmed that Cayetano had already arranged for Pastreich's salary to be paid in full by private donors within the community.

Cayetano said she quickly realized she would not have the support necessary to do her job effectively and resigned. "They wanted a CEO to do what they said, not what was necessary," Cayetano said.

In addition to the most recent high-profile departures, the symphony has two other vacancies to fill.

Vice president of operations Jim Mancuso, who has been with the symphony since 1997, is leaving to become manager of Pops and Special Events for the Nashville (Tenn.) Symphony. Mancuso, who expects to leave in July, said the job change is not related to the controversy.

Also, the symphony is midway through its two-year plan to find a replacement for musical director Samuel Wong, who resigned last June to spend more time with his family in New York and to pursue musical interests on the Mainland and Europe. Wong, who will assume the position of "conductor laureate" next season, has led the symphony since 1996.

While Bloom's resignation defuses the issue of whether his friendship with Berry resulted in an inefficient management structure, the loss of Cayetano, O'Neill and Fisch raises questions about the future direction of the symphony, which some speculate will retreat from the push to adopt a more business-like approach to management.

For their part, the musicians and their union have tried to stay out of the fray.

"We continue to hold a high regard for the Honolulu Symphony ... and we have continually demonstrated our commitment to the institution," said musicians' representative Ken Hafner in an e-mail statement. "We sincerely hope that the symphony can work through its current organizational challenges so that we can continue to perform great music for the people of Hawai'i."