Docs show new T GM has to show work for bonuses

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The MBTA’s new general manager must ramp up spending on key projects, hire a slew of new executives and ensure the system’s trains and buses run on time more often to score up to $32,000 in bonuses on top of his $320,000 salary, according to newly released

The MBTA’s new general manager must ramp up spending on key projects, hire a slew of new executives and ensure the system’s trains and buses run on time more often to score up to $32,000 in bonuses on top of his $320,000 salary, according to newly released documents.

The so-called “key performance indicators” tucked into Luis Ramirez’s contract won’t go into effect until Oct. 1 and must be renegotiated after the first year of his three-year deal.

But the two-page description released by the T details 17 different milestones he’ll be judged on to score the hefty salary bump in his contract.

They include:

•  Not allowing the T’s budget deficit to grow beyond $30 million, a shortfall that could be plugged by additional money the state kicks in each year;

•  Filling various vacant, high-ranking executive posts, ranging from COO and chief engineer to a “customer experience chief,” a post Ramirez has highlighted as a priority in his early comments;

•  Boosting spending on capital maintenance and modernization projects — an area that T has long struggled — to $795 million this fiscal year, an $86 million jump from last year; and

•  Overseeing “efforts to measure and achieve” improvement in how often the system’s trains, subways and buses run on-time, compared quarter-by-quarter to the previous year.

The new details, which Ramirez said he and the T finished negotiating Monday, explicitly lay out the expectations awaiting the 50-year-old former corporate executive in his first role in public transportation.

He spent part of his day yesterday defending his record as a self-described turnaround executive, including at Global Power Equipment, which has come under investigation by the Securities and Exchange Commission for filing erroneous financial statements while Ramirez headed the company.

“I’ve done that all over my record,” Ramirez said of turning around struggling enterprises. “That really plays into what we’re trying to do here at the MBTA right now. ... We need to work on reliability, we also need to work on the speed at which we get things done. All of these things are a skill set I’ve brought to the table here.”

On his first day, Ramirez said he took several “routes” on the system, including on the Green Line — only to find the fare machines weren’t working at the Hynes Convention Center stop, he said.

“I’m the kind of guy who really likes to walk the shop. That’s where I learn about the organization,” he said.

“Making customers the center of what we do is really what I want to work on here. It’s really important for me to capture their voice.”

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