After scandal and prosecution, ex-airport director Michael Gobb says there are lessons to be learned from his experience
Gobb
Lexington, KY - It was a scandal that reverberated throughout the city of Lexington: a front page article in the Lexington Herald-Leader appear-ing just days before Thanksgiving in 2008 bearing the headline: “A sky-high expense account.”
The article, detailing excessive travel and gift expenses of now former Blue Grass Airport Executive Director Michael Gobb would lead not only to Gobb’s resignation in disgrace and conviction on criminal charges, but also the departures and convictions of three airport directors who answered to Gobb.
It would also lead to scrutiny of the extent and quality of the airport board’s oversight and be followed by revelations of questionable executive practices and board oversight at numerous other local institutions.
Board governance and the oversight of executives would never be the same in Lexington, Ky.
Neither would the life of Mike Gobb.
Now divorced, his family gone from Lexington and his future uncertain, this once proud senior executive, credited with overseeing the development of what many consider one of the finest small airports in the nation, is ready to discuss the experiences of recent years.
BL (Business Lexington): It has been more than a year and a half since you were sentenced to five years on theft by deception charges, the sentence reduced to probation under threat of 60 days in jail if you got into any more trouble with the law. You are still living in Lexington, but life has become relatively quiet for you, and yet you have now agreed to discuss what happened and what was going on, at that time and since then, from your perspective. So first of all, why do you want to talk about it now?
MG (Michael Gobb): I did not want to miss this opportunity to bring attention to the path back from major life setbacks. This interview is not about making excuses or to rationalize behavior; it is about my decision to change and to make amends. There are lessons to be learned from the situation at the airport, hard and soft.
Blue Grass Airport was/is a successful organization in every measurable way. Over the 10 years that I was there, we essentially rebuilt or put into motion the rebuilding of the entire airport. We were named one of the fastest growing airports in the country. We had developed a schedule of airline service that is the envy of other small hub airports. We received awards for cutting-edge work. We did all of this while becoming a valued community partner. I do not want the success of the airport to be lost on this scandal.
BL: Your sentencing also required the completion of 500 hours of community service. What community service have you completed?
MG: I have completed the required 500 hours of community service and continue to work with community support organizations on an ongoing basis. I learned the most about myself, the disease of alcoholism and where that disease can take you while working with the Hope Center. They have a tremendous program working with men who are struggling, and I was fortunate enough to be a small part of that program. I also realized, through these hours, that the road to recovery takes many forms, and I see that a spiritual solution was essential for me.
BL: Going back to your time as director of Blue Grass Airport — when and why, do you feel, did the questionable judgment in terms of your expense spending begin? What was going on in Michael Gobb’s head at the time?
MG: When, about 2006; the why is the difficult part.
Prior to my tenure with the airport, it operated more as a business than a governmental organization. Over time I bought into that position and perpetuated that culture. I also used the phrase that we should go “above and beyond” in everything we did. And we did — sometimes to excess.
As to what was going on in my head — in 2008, I sought treatment for alcoholism, addiction to prescription pain medication, depression and post-traumatic stress. Beginning in mid-2006, I began using alcohol to overcome the memories and nightmares associated with the crash of Flight 5191. Alcohol became a regular part of my daily life. I made poor decisions and gave very little oversight to my direct reports.
BL: While it was going on, did you feel like you were doing anything wrong? How do you feel about it now?
MG: While it was going on, I felt a sense of entitlement to be rewarded for achievements. As I look back upon the expenses drawn into question, I feel embarrassed that I sought reimbursement for such items. I was compensated generously, and many of the expenses should have been covered by me personally.
BL: Revelations about the airport were soon followed by reports of questionable expenditures at several other institutions including the Lexington Public Library, the Kentucky League of Cities and the Kentucky Association of Counties. It raised many questions, especially in light of how much overlap there is in terms of leadership in Lexington's business community. Was that simply a series of isolated incidents or do you think that what you did is a common practice?
MG: The potential exists for abuse to occur at any organization. I cannot speak to what happened in other organizations. I can only comment on what went on at the airport. The airport board was made up of a strong cross section of very talented people with a high level of skill in varying disciplines. They had also developed a high level of trust in their staff.
Once the airport board detected a problem with my substance abuse, they acted quickly to protect the organization and to seek help for me.
There is overlap in our community with people serving on multiple boards and committees. That is a testament to the community leaders that they are willing to give of their time to serve. I believe the level of training now required for board service is healthy for the board member and the executives/organizations they oversee.
BL: In light of the considerable amount of money that was involved, a lot of people thought you “got off easy,” with probation instead of jail time. Do you feel you were treated fairly by the courts?
MG: Yes.
BL: You repaid the airport approx-imately $15,000 for expenditures, including $10,000 the airport paid on your behalf for treatment in an Arizona rehabilitation facility in the summer of 2008. That money was not part of the $41,000 prosecutors estimated that you owed as restitution. How much have you now paid in restitution?
MG: I repaid the airport board the total established by the prosecutor’s office and ultimately the court — $41,000 — in addition to the $15,000 previously identified by the Airport Board.
BL: What kind of toll has this taken on your personal life?
MG: I look at not only the toll this incident has taken on me but on people I worked closest with, including the management team, the airport board chair, the airport board members and the organization. Each one of the people involved lost a great deal. Their families were impacted. Names were ruined or tarnished. For me, I lost a 20-year career, a 19-year marriage and the respect I had developed in an industry that I love. I can say that this experience has truly humbled me, a lesson I needed to learn.
BL: What kind of work are you doing now?
MG: In 2009 I left the airport and began my own company, Echo Forward, LLC. As the CEO, I advise clients in facility development, master planning and provide facility management services. I have developed extensive crisis management services targeted for airport and airline clientele, encompassing disaster response, accident investigation, media relations and mental health support programs. While this work has been rewarding, I would like to find a position here in Lexington with a more regular work flow.
BL: Where do you go from here?
MG: I continue to work my program of recovery. I have three-and-a-half years of sobriety under my belt and am pain-medication free! My plan is to remain in Lexington and look for opportunities to change careers. I love the area and know that I can put my skills to use for an area company and continue to give back to a community that has given me a second chance.
I also will continue to grow spiritually. This part of my life has been essential in my recovery and in overcoming the many challenges my life has had me face over the past five years.
BL: How can other businesses avoid the same problems as Blue Grass Airport?
MG: A strong audit committee of the governing board is a necessity. An executive should insist on one. This committee must look beyond the typical review of an auditor’s report, looking at the procedures and policies in place. I also recommend that expense reports and reimbursement requests of key management personnel be filed/approved with this committee on a regular basis. Ultimately, strong financial controls benefit both the organization and the individual. This practice also removes the responsibility from one person.