The Metra board has authorized a 3.7% pay raise for CEO Jim Derwinski, as the agency contines to face low ridership and stares down a looming fiscal cliff.
Derwinski will now make $325,825, up from $314,200. The change, retroactive to January 2023, marks his third raise since the onset of the pandemic, after the board approved raises for 2021 and 2022. Prior to the pandemic Derwinski’s salary had remained the same since 2018.
The raise was approved Wednesday by 10 of the 11 Metra board members, with director Stephen Palmer abstaining.
The new salary puts Derwinski between leaders at the two other Chicago-area transit agencies. CTA President Dorval Carter’s base salary is $376,066, and Pace Executive Director Melinda Metzger’s base salary is $319,043, according to the Regional Transportation Authority.
Derwinski’s new salary comes as Metra, like other public transit agencies in Chicago and nationwide, faces a fiscal cliff once the federal pandemic aid the agency has been relying on to balance its budget runs out. Metra is projecting the federal funding will dry up in 2026, leaving the agency with a $274.7 million budget gap that year.
The fiscal cliff is partly tied to continued low ridership, as many white-collar workers continue to work from home at least a few days a week. Metra is looking to adjust service to reflect changing ridership patterns, but in January average weekday ridership remained at 54% of prepandemic levels.
“This was basically a retro pay raise that would have normally taken effect January 1 of ’23, so this is the work from the past,” Derwinski told reporters after the raise was approved.
In backing the raise, board members praised Derwinski’s work as the pandemic upended commuting patterns and Metra’s day-to-day business. Board Chair Romayne Brown said Derwinski has worked to modernize the commuter rail agency.
“He has worked hard and diligent through these changing times,” she said. “He’s a strong leader, an innovator.”
Board member Joe McMahon said Derwinski’s performance and compensation review process took place over about 90 days, and involved internal and external interviews. The board received positive comments about Derwinski’s performance and leadership, he said.
“I appreciate the work you do on behalf of Metra and leading a really dynamic organization through some very challenging times,” he told Derwinski.
