From the Lexington Herald-Leader: Kentucky workers’ comp agency cuts CEO’s pay, imposes probation after critical audit

By JOHN CHEEVES

In response to a stinging audit that criticized its spending practices, including no-bid contracts and University of Kentucky athletics tickets going to top managers for no identifiable business purpose, the governing board of Kentucky Employers’ Mutual Insurance on Friday recommended that its chief executive take a pay cut and lose his long-term job contract in favor of year-to-year probation.

KEMI’s board of directors unanimously voted to change the terms of CEO Jon Stewart’s employment after a three-and-half-hour closed-door meeting in Lexington with representatives from the offices of the state auditor and the attorney general.

“The board has authorized the executive committee to work with Mr. Stewart to implement a probationary contract at a reduced salary for a one-year term, with opportunity for annual renewals,” the board said later in a prepared statement. “As evidenced by the board’s audit request, we continually look for opportunities to make improvements for the benefit of Kentucky’s employers.”

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