Honolulu rail CEO gets new contract, but says she was ‘a little offended’ by one requirement

HONOLULU (HawaiiNewsNow) - The Honolulu Rail authority approved a new contract Friday for CEO Lori Kahikina, which could keep her on the job until the project is finally finished, but also requires she go to a training program for top executives.

Although Kahikina said she was pleased with the contract terms, she had mixed feelings about the mandatory training.

“At first I was a little offended,” she said. “But it’s OK. It wasn’t a deal breaker for me because everyone can learn.”

Although which program she attends is to be determined, the contract recommends the UC Berkeley CEO program, which offers flexible schedules for busy executives and a curriculum including leadership style, inclusive corporate culture and managing a board of directors.

Board member Anthony Aalto promoted the idea after hearing complaints from anonymous current and former HART employees.

“Lori is being very brave in admitting that she’s a tough person to work for and that’s been an issue of friction between her and the board,” Aalto said. “And this is an area where the board felt this is a way we can give Lori the skills so instead of us beating on her she will acquire the skills and we won’t have to worry about that area.”

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Board member Robert Yu said he would prefer that going for training should be up to Kahikina and not required in the contract.

“It should be up to the employee as to whether they want to do it or not,” Yu said. “Since you are talking about the good things about the current executive director and we’re paying her a competitive salary – it’s just weird you are paying someone that much and you go, ‘by the way you need to complete these courses,’” Yu said.

“I am a difficult boss I admit that I am very hard,” Kahikina said. “I hold people accountable and I hold them to a high standard ... but I also can be intimidating. So, I think I can learn to be a little bit softer.”

Despite his concern, Yu still joined in the unanimous decision that came after several months of turmoil — which included the anonymous employee complaints and an investigation of Board Chair Colleen Hanabusa’s treatment of Kahikina. Hanabusa excused herself from Friday’s vote.

Kahikina’s salary will be $336,000 dollars, after a 14%, $39,000 raise. City Transportation Services Director Roger Morton, the chair of the subcommittee that negotiated with Kahikina, said the raise was to make up for three years Kahikina served without raises.

Kahikina is guaranteed at least three years — with two potential two-year extensions that could extend her employment until the expected completion of the project in 2031.

Kahikina said that was what she wanted most — to provide stability and predictability for employees and contractors.

“They need to have the consistency so they understand that the leader that they are dealing with so they don’t build in any extra costs or risks into their bidding,” she said.

HART will pay up to $45,000 for the CEO training.

“I think when we are talking about a 11 or an 11 and half billion dollar project,” Morton said. “I think it will be money well spent.”

Kahikina can now focus on challenges like finding savings to pay for the final guideway segment — after its bid came in $300 million over budget.

Kahikina says she’s confident that she’ll be able to meet the goals of the project. Her main concern is labor and supply shortages that could come with a booming construction industry.

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