Margaret DeFrancisco, Ga. Lottery CEO: $496,776
By JIM WALLS
The head of the Georgia Lottery made about a half-million dollars last year, but you wouldn’t know it if you checked salary data on the state auditor’s website.
Open.Georgia.gov shows Margaret DeFrancisco, president and CEO of the Georgia Lottery Corp., was paid $353,500 in salary in FY2010, plus $17,720 for travel. What it doesn’t tell you is that the lottery paid her an additional $143,276 bonus last year.
DeFrancisco also collected paychecks totaling $490,000 in FY2009 and $436,000 the year before that. But information provided to the auditor shows only a $286,000 salary in 2009 and nothing at all the year before that. (The auditor didn’t ask for that information until 2009).
None of the incentive pay awarded to lottery employees is reflected at Open.Georgia.Gov, a review of data for 2009 and 2010 shows. Those payments totaled $1.89 million in 2010 and nearly $15.4 million since 2005.
Compensation data posted at Open.Georgia.Gov is provided by the various state agencies, and the auditor’s office does not check whether it is accurate or complete.
Lottery officials will provide rudimentary information on incentive pay for DeFrancisco and other employees if you call and ask, but they’re fuzzy on the details. Lottery spokesman Tandi Reddick said in an e-mail that DeFrancisco’s pay was based on an independent study:
“The Georgia Lottery Corp.’s board of directors determine her base pay and incentives, which were based on an independent compensation study conducted by Mercer University and the state of Georgia’s State Personnel Administration. Her salary and incentive are based on the profits returned to education and personal performance, which include sales of more than $3.6 billion and profits to education of more than $883.8 million.”
Sadly, lottery officials haven’t been able to provide me with a copy of that study because they can’t seem to find it. And Reddick declined to release any documents that would show how DeFrancisco’s bonus is calculated, citing Section 50-27-25 of the Georgia Lottery for Education Act:
“The corporation is specifically authorized to determine which information relating to the operation of the lottery is confidential. Such information includes trade secrets; security measures, systems, or procedures; security reports; information concerning bids or other contractual data, the disclosure of which would impair the efforts of the corporation to contract for goods or services on favorable terms; employee personnel information unrelated to compensation, duties, qualifications, or responsibilities; and information obtained pursuant to investigations which is otherwise confidential.”
Call me crazy, but I can’t see how language that exempts information that is “unrelated” to compensation can be applied to information that is directly related to compensation. I am seeking clarification on this point with Attorney General Sam Olens’ office.
The State Auditor this week released a report that discusses incentive pay at the lottery and explains how it is calculated, under a method first used in 2010.
Auditors said they could not determine whether there was a correlation between bonus pay and proceeds for education. They found DeFrancisco’s 2008 compensation of $436,000 was second-highest in the nation among lottery executives, behind only Tennessee’s Rebecca Paul Hargrove, who ran Georgia’s lottery before DeFrancisco.