Honolulu Rail CEO Gets A Hefty Raise As Part Of New Long-Term Contract
Lori Kahikina will earn $336,000 per year under the new contract. It also includes a requirement for her to complete a training program for top executives.
The Honolulu Authority for Rapid Transportation board on Friday granted the chief executive of the rail project a 22% pay raise and a new contract that could last until 2031, resolving months of uncertainty surrounding the leadership of the $10 billion project.
The new contract for CEO and Executive Director Lori Kahikina boosts her pay from $275,000 per year under her current contract to $336,000 under the new agreement, which begins on Jan. 1.
Kahikina has been leading the city’s rail project 鈥 the largest public works project in Hawaii history 鈥 since early 2021. The new contract will be for three years, followed by a pair of two-year extensions that would automatically take effect unless a majority of the HART board members object.
Kahikina thanked the board members.
“I鈥檓 very passionate about this project and am so pleased we鈥檝e come to this agreement,” she said in a statement. “I鈥檓 extremely proud of all the accomplishments and good work that we, as a team, have achieved together and I look forward to many more momentous milestones.”
Kahikina’s current contract expires at the end of this year, and her relationship with some on the rail board has been strained in recent months.
She had a harsh and sometimes loud exchange with board Chairwoman Colleen Hanabusa in April after the resignation of Project Director Nate Meddings, a top rail executive some members of the board regarded as critical to the project’s success.
Kahikina later publicly characterized that exchange as an example of prompting Hanabusa to ask the city to investigate Kahikina’s claim. Honolulu Mayor Rick Blangiardi’s office said Friday that investigation is pending.
“I’m just happy where we’re at today, and glad to have it behind us so we can move forward.”
HART CEO Lori Kahikina
The board鈥檚 annual evaluation of Kahikina also cited shortcomings in her performance, including a claim that she restricted the board鈥檚 access to important information. The evaluation, which was made public in April, also expressed alarm at HART鈥檚 ongoing difficulties recruiting and retaining staff.
But Blangiardi backed Kahikina, urging the board to extend her contract. Kahikina said she wanted a new multiyear contract, and publicly warned the rail board that uncertainty about her future with the project was interfering with efforts to recruit key staff.
When asked if she will be able to work with Hanabusa in the future, Kahikina said in an interview Friday that “I would like to think that we can both be professionals to move the project forward.”
Kahikina has publicly acknowledged shortcomings in her management style, telling board members in April that 鈥淚 know I can be a difficult leader and tough. I understand that, so I鈥檓 trying to change, change the perception, change how I react with or interact with the different employees.鈥
To that end, the new contract includes unusual language that requires Kahikina to complete training at the at the University of California, Berkeley Haas School of Business or a comparable program to be approved by the board.
Kahikina is required under the contract to enroll in the program by the end of 2025, and complete the program in the following two years. If she cannot complete the program in that time frame, she may ask the board for an extension.
The contract also specifies that Kahikina is “encouraged” to hire an executive coach, with the cost to be borne by the board.
Kahikina said she is not opposed to the additional training.
“At first I’m a little insulted, but everyone can improve, and if these programs will improve me and help me be a better leader for the HART ohana, for the program as a whole, then I’m all for it. Whatever I can learn from it, I will implement here.”
Board member Robert Yu said it seems “weird” that HART would be paying a highly skilled executive a salary of $336,000, and requiring that employee to complete management training.
HART board member Roger Morton said the idea behind that contract language is “we’ve had a very good executive director, and we’d like to just support that executive director and help her to transition to even better in the future. We’re looking for good to great as part of this contract.”
The new contract authorized the HART board to grant Kahikina additional raises starting in 2026 equal to the percentage raises that the to the director of the city Department of Transportation Services.
Kahikina has not had a pay increase since she took charge of HART as interim CEO in January 2021.
Kahikina said she wishes she had been able to secure a new contract sooner, “but it is what it is, and I’m just happy where we’re at today, and glad to have it behind us so we can move forward.”
She had been paid less than her male counterparts. Her predecessor Andrew Robbins served from 2017 to the end of 2020 and earned an annual salary of $317,000.
Krishniah Murthy led HART as interim CEO from 2016 to 2017 and had a salary of $400,000, while Dan Grabauskas had the job from 2012 to 2016 with a salary of $299,250.
The HART board also voted unanimously Friday to name Lisa Baker as the ninth voting member of the HART board.
Baker was involved with the Honolulu rail project for nearly a decade through her work for rail consultants PGH Wong Inc., HDR Engineering Inc. and Stantec Consulting Inc. before she retired last year.
Read the contract below:
