PROVIDENCE -- Governor Carcieri fired two long-time members of the Beacon Mutual Insurance Co.'s board of directors today, claiming that a move by the board to remove two top company officials did not go far enough.
Termination letters were hand-delivered today to George Nee and Henry Boeniger, both Beacon board members since the General Assembly created the workers' compensation insurer in 1994.
Carcieri has authority to remove for cause four of the seven board members who are governor appointees. He had earlier asked Nee and Boeniger to "step down for cause."
In a marathon meeting that ended this morning at 2:15 a.m., the board decided to fire former Beacon CEO Joseph A. Solomon and vice president of underwriting David Clark.
Both had been suspended with pay by the board last Friday in the wake of a scathing audit of the company's practices, alleging mismanagement and abuse.
“There is no doubt that Beacon’s decision to terminate the CEO and the vice president of underwriting for cause is the right thing to do, and is a good first step towards reforming Beacon Mutual,” Carcieri said in a statement released this afternoon.
“But it is just the beginning. For the good of the company, the policyholders and the people of Rhode Island, Beacon board members who refused to support this change must go.”
The statement said Carcieri is also asking a third board member, John A. Holmes Jr., to meet to discuss Holmes’ involvement in Beacon’s management problems.
Carcieri had also asked Holmes, a fellow Republican who has been on the board since 2002, to step down for cause. But his statement today noted that Holmes was not on the board while much of the alleged mismanagement occurred and has supported a change in management since the audit report was released.
The Beacon board consists of four members appointed by the governor, three representing policyholders, the director of the state Department of Labor and Training, and the chief executive officer.
Nee, Boeniger, and Holmes were appointed by former governors.
The only board member appointed directly by Carcieri is Brendan Doherty, who was selected in February.
ARTICLE TOOLS: 
