By Shawn Hogendorf, Correspondent 

Newly-hired superintendent Sue Ann Gruver will get a higher salary and more incentive pay than current superintendent Tom Westerhaus, according to salary contract details approved by the Prior Lake-Savage Area School Board on Monday (May 5).

The board approved a three-year contract paying Gruver a base salary of $150,000 in 2008-09 and $153,000 (a 2 percent increase) effective July 1, 2009.

The salary of the third year of Gruver’s contract is subject to negotiations between the board and Gruver, said Tony Massaros, director of human resources. There is no particular formula to determine that salary, he said.

Gruver’s contract is a $7,750 increase from the $142,250 salary current Superintendent Tom Westerhaus was paid this year.

Gruver will also be eligible for a 4 percent performance incentive, whereas Westerhaus was given a 2 percent performance incentive in his contract.

“The increase in salary compensation reflects the labor market for superintendents today,” Massaros said.

Westerhaus’ contract from for the past three years was $135,400 in 2005, $138,100 in 2006 and $142,250 in 2007.

But his contract was far behind others of comparable in size and geographic location, according to Kenneth LaCroix, who served as the search consultant for the district. If a contract isn’t initially competitive, as time goes by it’s hard to catch up, he said. If a superintendent threatens to leave because pay is higher somewhere else, it’s hard to retain them, LaCroix said.

“This contract is fair, equitable and near the median for superintendents hired in school districts of comparable size and geographic location,” LaCroix said. “Her contract is still less than the median for the seven-county metropolitan area.”

The salary for the Lakeville School District superintendent in 2008-09 is $183,401, with a 3.5 percent performance incentive, LaCroix said. In 2009-10, the Lakeville superintendent will be paid $190,700, he said. The Chaska School District will pay its superintendent $182,184, with a 5 percent performance increase, LaCroix said. The newly-hired Burnsville-Eagan-Savage superintendent will make $180,000 next year.

 Gruver also will be compensated with two-party medical and dental coverage, whereas Westerhaus was compensated with family medical and dental coverage.

Gruver’s contract contains a service incentive and compensation following the completion of six years of employment with no severance pay.

Westerhaus’ contract made him immediately eligible for the severance package of one month’s salary for each full year completed with a six-month maximum.

The difference is that Gruver isn’t eligible for severance payment until she has given the district six years of employment, Massaros said.

“This is more of an incentive to stay here, because if she stays for at least six years, there is additional compensation,” he said.

Gruver will also receive a health-savings plan contribution of $4,000 per year with no retiree insurance. Westerhaus’ contract included two-party retiree insurance until he was eligible for Medicare.

Gruver will get an annual contribution to a savings account on a pre-tax basis, rather than guarantee a level of insurance coverage, Massaros said.

The district’s superintendent salary is paid from the general fund.Gruver was paid $122,000 in 2007-08 as the assistant superintendent with the Mahtomedi School District. Shawn Hogendorf can be reached at shogendorf@swpub.com.