Borough sues over severance pay for hospital's ex-CEO

Associated PressJuly 13, 2012 

WRANGELL -- The Borough of Wrangell has filed a lawsuit against the former head of the hospital and six recalled board members, attempting to reclaim $520,000.

When a recall vote was announced in March, the board met and changed Wrangell Medical Center CEO Noel Selle-Rae's severance package from one year's pay to five years' pay.

KSTK reports eight board members were recalled June 19. The next day, before the vote was certified, seven board members -- including six who had been recalled -- met and voted 6-1 to terminate Selle-Rae and directed he be paid $520,000 severance.

The borough is seeking return of the $520,000. It argues, among other reasons, that the vote to pay Selle-Rae didn't comply with board protocol and he didn't meet terms to receive the package.

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