JACKSONVILLE, Fla. – Aaron Zahn, the former CEO of JEA, found out that the bonus plan that led to his firing and federal conspiracy charges might not be legal, causing him to become angry and frustrated. This revelation came from Jason Gabriel, the former general counsel for the city of Jacksonville, who testified at the trial of Zahn and ex-JEA CFO Ryan Wannemacher. The defendants are accused of implementing a bonus scheme that allowed JEA employees to purchase company “units” that could increase in value if the utility was sold. Gabriel argued that he had concerns about the plan from the beginning, leading to clashes with Zahn.
During the trial, it was revealed that Zahn and Gabriel had a heated conversation in the hallway after a meeting in November 2019. While the details of their conversation were unknown, other witnesses interpreted it as a sign that the plan would be “indefinitely postponed.” Gabriel expressed his frustration regarding the legality of the plan, stating that he didn’t fully comprehend it and had reservations throughout the approval process.
Gabriel also mentioned that Zahn was visibly upset and told him to “kill” the plan. However, the meeting did not end the performance unit plan (PUP) entirely. Instead, Gabriel and Zahn left the possibility open for constructing another option that would comply with the statutory rules for bonuses to public employees in Florida.
A week later, Zahn emailed Gabriel to inform him that the plan had been “indefinitely postponed.” While Zahn’s defense argued that this phrase did not represent a final decision because the plan had already been approved by the JEA board of directors, Gabriel testified that Zahn still saw a potential future for the PUP plan and even requested Gabriel to continue drafting a letter stating its legality.
Gabriel’s testimony shed light on the lack of discussion surrounding the potential payouts that could arise if JEA was sold. Another attorney suggested that these payouts could amount to “outlandish” bonuses in the millions of dollars. Gabriel, however, never calculated the specific numbers himself, as he believed that the legal aspects of the plan were already problematic.
The PUP plan itself was described as a “unicorn” by the defense and witnesses. Gabriel concurred, referring to it as a “fantasy” and an “absurd thing.” In addition, he mentioned instances of Zahn’s temper, recounting a phone call where the former CEO berated him. Gabriel admitted that he had been deceived multiple times in the past, which affected how he spoke about the plan during the trial.
Gabriel’s testimony also revealed that a memo from the Office of General Counsel only stated that the board had the authority to approve one of the various plans considered at a meeting in July 2019. It did not confirm the legality of the specific plan devised by Zahn and Wannemacher. Lynn Rhode, the chief legal officer for JEA at the time, testified earlier in the trial, providing further support for the defense’s advice-by-counsel argument.
As the trial continues, these testimonies from Gabriel and Rhode shed light on the concerns and conflicts surrounding the controversial bonus plan implemented at JEA by Zahn and Wannemacher.