In a severance agreement with Palo Alto Unified Superintendent Max McGee, who tendered his resignation Tuesday night, the school board has agreed to provide him with six months' pay and health benefits through the end of the year.
School board President Terry Godfrey provided the terms of the separation agreement to the Weekly on Wednesday morning. The board unanimously approved the agreement in closed session on Tuesday but Godfrey did not announce the terms in open session, in spite of a Brown Act legal requirement that closed session actions be announced as soon as the meeting is reconvened in public.
The district posted the agreement online on Wednesday morning.
The district will pay McGee about $153,000, plus the cost of health insurance. His annual compensation was $315,918, which includes a $750 per-month car allowance.
McGee will also turn back to the district the deed for a townhouse in Palo Alto he purchased with a $1.5 million interest-free loan provided by the district, Godfrey said. This means the district, not McGee, will benefit from any appreciation since he purchased the home in August 2015.
The language in McGee's employment contract provided that the loan had to be repaid within a year of his ceasing to be superintendent, so he could have held on to the home until next September, then sold it and repaid the loan. (According to Godfrey, McGee did not use any of his own funds for the purchase.)
McGee's resignation, which the board unanimously accepted on Tuesday, is effective this Friday, Sept. 29.
The school board will be holding a special closed-session meeting tonight, Wednesday, from 9-10 p.m. to discuss the appointment of an interim superintendent.