TEDA fires director; reason remain restricted

Members of the Terrebonne Economic Development Authority Board of Commissioners, and individuals closely associated with the public/private trade and industry partnership, remain tight-lipped one week after TEDA CEO Michael Ferdinand learned during a special meeting that his job had been terminated.

Board members entered an approximately 10-minute executive session last Wednesday, with that being the first of two business items on an after-hours agenda. The second matter was listed as “CEO’s Contract,” which was canceled by those in attendance with a vote that met no opposition, but one abstention by board member and Terrebonne High School Principal Graham Douglas. Board member and personal injury lawyer Brad Doyle was absent.

Following the meeting, which took approximately 35 minutes, Board Chairman Matthew Armand was asked to comment on the action. “I actually have a written statement,” he said. Armand then reached into a file folder and handed over a previously prepared release to announce that the board had voted to cancel Ferdinand’s contract.

“On behalf of the entire TEDA Board, I want to thank Mike Ferdinand for his service to TEDA over the past five years. Ultimately, it is the Board’s job to insure that the mission of TEDA n to grow business in Terrebonne Parish n is fully executed to the best of the agency’s ability. This is the work that the businesses and residents of Terrebonne Parish entrust us to do.

“Recently, it has become apparent that a change in leadership is necessary to provide for the future success of this organization. We have taken action, therefore, to terminate the current CEO’s contract. This is a very heart-wrenching decision to make, but in the end, we wholeheartedly believe it is in the best interest of this organization, the businesses we serve, and Terrebonne Parish as a whole.

“Over the next few weeks, the TEDA Board will be forming a Search Committee, as well as making a determination on appointing an interim CEO to manage the day-to-day operations of the organization, as we embark on a national search for a permanent CEO. We thank the entire Terrebonne Parish community for their support and assurance to our clients that the work of TEDA will go uninterrupted during this transition period,” Armand’s prepared statement read.

As the meeting concluded, it was announced that TEDA marketing director Michelle Edwards would function as an acting manager until an interim CEO is named. One board member asked if Edwards would want the responsibility to which she answered that she had been asked about it and accepted the task one day prior to the board’s vote to fire Ferdinand.

Outside the meeting, Edwards requested that questions be deferred to Armand. When asked if she would receive additional compensation for the added responsibility she faces, she said that no one had mentioned it to her. Ferdinand had been hired at an annual salary of $76,000, but has received pay raises since.

Following the meeting Ferdinand waived off questions. “Not this time,” he said. “I appreciated the opportunity to serve.”

Ferdinand was accompanied to the special board meeting by attorney Estelle Mahoney of The Schwab Law Firm. Mahoney asked the board if she could remain with Ferdinand during the executive session. Her request was denied.

Outside the boardroom’s closed doors, Mahoney confirmed that she was representing Ferdinand for that occasion, but said she was not ready to make a comment at that time.

On Friday, Mahoney said that she viewed Ferdinand’s dismissal as a termination without cause and said that no reason was offered. “Mr. Ferdinand enjoyed his experience with TEDA and they are both going to move on, apparently,” Mahoney said. “Without cause they don’t need a reason, do they?”

Most board members were cordial to Ferdinand following the meeting, but each of those approached for a comment declined to offer any statement or motive for Ferdinand’s removal from office.

“It’s been a long day. I just want to go home,” board member and Rig-Chem President Lori Davis said.

Armand was reached by telephone Thursday and asked what procedure would be taken and what timeline should be expected to find a new CEO. Armand said he was in the middle of something, asked for the caller’s e-mail address then sent the same pre-written statement that he had handed over the previous evening.

Before becoming CEO of TEDA, at the beginning of 2006, Ferdinand had worked as director of the Natchez-Adams Economic Development Authority in Natchez, Miss. He resigned from that position in June 2005 with no clear explanation given.

Natchez Democrat managing editor Julie Cooper said that her impressions while covering the economic authority during Ferdinand’s nearly four-year term there, and his departure, was nothing but positive and above board.

Louisiana is designated as an “employment at will” state based on Civil Code Article 2747. “Employment at will” dates back to the 19th century in relation to the keeping or releasing of hired servants.

Being “employed at will” means that an employer can fire an employee at any time without giving any reason or for no reason without having to give an explanation or deal with legal repercussions. On the other hand, employees can quit at anytime for any reason or no reason and cannot have that decision held against them.

The occasional exception to this rule comes in cases when and employer and employee have a written contract of service, which is designated for a specific length of time. Another exclusion is made in instances of collective bargaining agreements when unions are involved.

It was confirmed after his firing that Ferdinand did have a written contract with the TEDA Board of Commissioners. “He could have benefited from having representation,” Mahoney said.

It was unknown at press time what the next step for TEDA would be.