Louisiana Insurance Commissioner Jim Donelon did the right thing last week in rejecting a $50,000 pay increase for the CEO of Citizens Insurance, the state-run insurer of last resort.
By all accounts, the CEO of Citizens has done a good job and has been praised for keeping the company afloat. But, the decision to increase his pay from $240,000 to $290,000 a year came just hours after the Citizens Insurance Board learned it is facing a $56 million deficit.
The pay hike vote also came after the board voted to increase commercial rates by 45 percent. What was the board thinking? This isn't about job performance, but it's about fiscal responsibility.
Donelon's decision was the right one for taxpayers and the thousands of people insured by Citizens.