NJ Transit did not negotiate a compensation package with the man it tapped as its new executive director before hiring him, an unusual move that likely led to his withdrawal from the job when the sides could not come to an agreement, a source with knowledge of the talks said Thursday.
William Crosbie, the former COO of Amtrak, was scheduled to start April 25 as NJ Transit's new boss. Instead, he told acting state Transportation Commissioner Richard Hammer late Wednesday that he wasn't taking the job, a move the state attributed to Crosbie having issues about moving his family from Virginia.
William Crosbie, who was to be NJ Transit's next executive director. (Patty Schuchman | NJ Transit)
But Crosbie's salary was left open to negotiation when he was hired on April 6, and the source said the sides could not reach an agreement.
NJ Transit's last two executive directors were hired after salary and benefits were negotiated, according to agency documents.
Former Executive Director Veronique Hakim earned a $261,324 base salary, which was negotiated upon before she was hired on Feb. 24, 2014.
The state Department of Transportation had handled the search and hiring process for NJ Transit. DOT officials didn't have an explanation as to why that hiring practice was changed.
"I don't have details on the nature of the hiring process for the previous executive directors, but each search is different," said Stephen Schapiro, a state Department of Transportation spokesman.
"The search process will continue," Schapiro said.
"You have to wonder why NJ Transit wouldn't offer the salary package ahead of time?" said Jeff Tittel, executive director of New Jersey chapter of the Sierra Club. "You always want to know the benefits and compensation before you take a job. NJ Transit made a mistake of not negotiating that ahead of time and gave him an opportunity to withdraw."
Gov. Chris Christie said Thursday that he was "disappointed" Crosbie ended up walking away from the job.
"He'd told me to my face he was going to take the job," Christie said. "So I'm disappointed that he's had a change of heart.
"When you say you'll accept a job and you look someone in the eye, I think it's important to keep your word," said the governor. "So I'm very disappointed in that, and I think it's probably a warning for anybody else who's interviewing for a job going forward."
While state officials said little about what the next steps are, experts said the state might want to start with a clean slate of candidates. The governor, however, said the search would double-back to some of the previous finalists for the job.
Several issues facing the agency may make it difficult to attract a strong candidate, experts said.
"Crosbie had characteristics in his background that made him suitable for the job and it's not easy to find a person like that," said Martin Robins, a former NJ Transit acting executive director and Rutgers Voorhees Transportation Institute director emeritus. "Some of the other (finalists) are not well prepared for the job. This is a challenge for the Christie administration and it is important."
Some challenges facing the next executive director include a projected $45 million budget hole and the state's Transportation Trust Fund, which runs out of revenue to fund major projects on June 30.
Those factors also might have caused Crosbie to reconsider, experts said.
"The NJ Transit job ought to be one of the most attractive in the country," Robins said. "The list of challenges isn't good. It's a mixed bag of opportunities and scary possibilities."
The DOT had hired search firm Krauthammer & Associates, which NJ Transit had used to hire a deputy executive director last December, to find the new agency boss. That firm will be paid a percentage based on the salary of the new executive director, Schapiro said.
Larry Higgs may be reached at lhiggs@njadvancemedia.com. Follow him on Twitter @commutinglarry. Find NJ.com on Facebook.