Indian Wells Approves City Manager Payout

Jessica Flores

Indian Wells Approves City Manager Payout

CREATED Nov. 3, 2011

 The Indian Wells city council voted to pay embattled former city manager Greg Johnson $400,000 in severance pay for resigning his position.


"The city council made the right decision. We can move on now," said council member Douglas Hanson.


Johnson is resigning following accusations of using his political pull to get local banker Haddon Libby fired. Libby was publicly questioning Johnson's high salary. First Foundation Bank fired Libby shortly after Johnson emailed Libby's boss.


Libby is taking action against his former employer, citing wrongful termination, and now the city of Indian Wells could face a lawsuit as well.


The council's decision to pay out Johnson could save the city from further legal trouble, because city lawyers say the Johnson's employment contract requires the full year's severance pay. 


Other city officials, including the mayor, were included in the emails to Libby's boss, and they are still under pressure to answer questions about their knowledge of those controversial emails.