‘No conflict’ doesn’t mean mayor’s bank post is ethical
Mayor Kirk Caldwell denied at a recent debate with opponent Charles Djou that his post as a director of Territorial Savings Bank, which pays him $200,000 to $299,000 a year according to his financial disclosure, constitutes a second job in addition to his mayoral role that pays $164,928.
He described the lucrative bank position he’s clung to tenaciously against charges of conflict of interest as more of a service than a job, like he was helping out a community group.
How could it be a job, he asked, when he puts in only an hour or two a month for the bank?
Question to him, then: Unless he lays golden eggs, what could he possibly provide in an hour a month that’s worth $299,000 to Territorial other than political influence?
The mayor has pinned his defense of the dual income on advice from the Ethics Commission that there’s no conflict of interest because the city has no deposits with Territorial.
But to say there’s no conflict under the city’s narrowly construed ethics code doesn’t necessarily equate to it being ethical.
Neither the mayor nor the Ethics Commission has offered examples of other Hawaii chief executives on either the city or state level who have mixed such rich outside positions with their public jobs.
In the debate, Caldwell turned the question into a commercial for his bank, saying critics are “denigrating the good work of Territorial Savings. … Their sole purpose is to put people into their homes; 95 percent of their work is single-family, residential loans.”
Which means the bank and its clients have a strong financial interest in everything the city does related to housing — planning and zoning, property taxes, building codes and permits, roads, rail and public works, among others.
And Territorial officers and clients have well-paid-for opportunities to whisper their concerns into the mayor’s ear that few others enjoy.
No conflict of interest?
According to Territorial’s annual report, one of Caldwell’s duties is to head the committee that sets pay for bank executives, while Honolulu Civil Beat has reported that said executives donated at least $25,000 to his mayoral campaigns.
No conflict of interest?
Instead of the city Ethics Code’s wiggly definitions, let’s go with a simple definition of ethics from late U.S. Supreme Court Justice Potter Stewart: “Ethics is knowing the difference between what you have a right to do and what is right to do.”
Does the mayor’s Territorial tap dancing live up to this?
Even without the Territorial money, Caldwell and his wife, Bank of Hawaii executive Donna Tanoue, had joint income of at least $864,000 in 2015 and owned millions worth of stock from their banks.
How much does he need before city taxpayers who provide him a reasonable salary get his full attention with no question of conflict?
Reach David Shapiro at volcanicash@gmail.com.
32 responses to “‘No conflict’ doesn’t mean mayor’s bank post is ethical”
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David you are right on once again. But the question is, do you think Kirk Da Clown CADwell cares? He is so self righteously in denial that it’s pathetic. Between he and the Kealoha’s this city doesn’t stand a chance of improvment by leadership. The roads are in the worst condition ever, the homeless grow by the bussels and rail is nothing more than a ghost train to nowhere that keeps demanding tax dollars. A very slippery slope indeed.
Not only does Kirk Caldwell make between $8333 to $25,000 an hour at his Territorial Savings side job, he has a ton of Territorial Stock worth ? a million, ? two million. He must lay golden eggs.
Caldwell Kirk W (0001467593)
Mailing Address
1132 BISHOP STREET
SUITE 2200
HONOLULU HI 96813
Ownership Reports for Issuers: (Click on issuer name to see other owners for the issuer, or CIK for issuer filings.)
Issuer Filings Transaction Date Type of Owner
Territorial Bancorp Inc. 0001447051 2015-09-15 director
Items 1 – 13
The information presented below contains only portions of the information presented in the referenced filing or filings.
You should consult the original filing for complete information. Hyperlinks to the forms are provided for your convenience.
Acquistion or Disposition Transaction Date Deemed Execution Date Issuer Form Transaction Type Direct or Indirect Ownership Number of Securities Transacted Number of Securities Owned Line Number Issuer CIK Security Name
D 2015-09-15 Territorial Bancorp Inc. 4 S-Sale –D 4479.0000 38602.0000 1 0001447051 Common Stock
D 2014-09-02 Territorial Bancorp Inc. 4 S-Sale –D 100.0000 43278.0000 5 0001447051 Common Stock
D 2014-09-02 Territorial Bancorp Inc. 4 S-Sale –D 1400.0000 43581.0000 3 0001447051 Common Stock
D 2014-09-02 Territorial Bancorp Inc. 4 S-Sale –D 197.0000 43081.0000 6 0001447051 Common Stock
D 2014-09-02 Territorial Bancorp Inc. 4 S-Sale –D 100.0000 45981.0000 1 0001447051 Common Stock
D 2014-09-02 Territorial Bancorp Inc. 4 S-Sale –D 203.0000 43378.0000 4 0001447051 Common Stock
D 2014-09-02 Territorial Bancorp Inc. 4 S-Sale –D 1000.0000 44981.0000 2 0001447051 Common Stock
A 2010-08-19 Territorial Bancorp Inc. 4 A-Award –D 41275.0000 41275.0000 2 0001447051 Stock Options
A 2010-08-19 Territorial Bancorp Inc. 4 A-Award –D 36821.0000 46081.0000 1 0001447051 Common Stock
A 2009-07-10 Territorial Bancorp Inc. 4 A-Award –D 9260.0000 9260.0000 1 0001447051 Common Stock
Actually, if there’s no conflict of interest, just WHAT IS the ethical issue? Kirk was on the Territorial board for many years, and this stock option was offered long before he became Mayor. Is this issue then simply that we don’t like the fact that he made money from the his career as an attorney? Are the members of the Star-Advertiser, or its publisher, all corrupt simply because they make money in multiple companies? This is a manufactured issue, presented by a candidate who started his political career in his 20’s. Now, that’s a career politician! And when asked during the debate if Djou could cite a single proof of corruption on behalf of Caldwell, Djou said “No I cannot.” And has anyone presented one example of this Mayor not working harder at his City responsibilities than any predecessor? Did Mr. Shapiro provide a shred of corruption or conflict? No. Just a grumpy old man who has clearly already made up his mind, so has no problem ignoring the facts.
Looks like he got that big score on stock when he was either City Mamager or Activng Mayor from before. Either way, it doesn’t pass the smell test.
Oh, I see the problem; you didn’t read very carefully.
“Which means the bank and its clients have a strong financial interest in everything the city does related to housing — planning and zoning, property taxes, building codes and permits, roads, rail and public works, among others.
And Territorial officers and clients have well-paid-for opportunities to whisper their concerns into the mayor’s ear that few others enjoy.
According to Territorial’s annual report, one of Caldwell’s duties is to head the committee that sets pay for bank executives, while Honolulu Civil Beat has reported that said executives donated at least $25,000 to his mayoral campaigns.”
Like Hillary Clinton, Kirk Caldwell is so brazenly corrupt, he claims his conflict of interest and ethical shortfalls are a virtue. It’s really shameful and disgraceful that so many candidates at all levels are seriously ethically and morally challenged. Act locally and vote for anyone but Clinton and Caldwell.
Agree. Trump is no saint but he sure has not done anything as bad as the Clintons !
Djou needs to talk a lot tougher and Put LYING kirk in his place.
I would, but Trump and Djou … hardly better options. Damned if you do, damned if you don’t.
Ethics Department could never render another opinion on the matter anyway because Caldwell cut their funding. They still don’t have even one investigator. There was one report that the phone at the office there doesn’t even get answered. Caldwell does put people first: Kirk Caldwell, his campaign helpers and his political donors. They are the winners. The rest of us, not so much.
Oh, come on David—he’s a Democrat, and in this State that means he can do anything and still get elected. Look at the worthless, do nothings we have on our Congressional Delegation!! One thing threads them all—- the big “D”.
He is one well paid public servant.
Thanks for publicizing what needs to be publicized: that we have an ethically bankrupt mayor in KROOKWELL who just flaunts in the face of hard working “average locals” that pay to play and an entrenched, patriarchal political party are steering Hawaii towards doom as he and his kind laugh it all off, make excuses for themselves and sip piña coladas on the lanai of their low tax, mostly exempt “historical” homes.
KROOKWELL needs to be OUSTED this November!!!!
Shapiro is the problem with Caldwell being on the board or the amount he is paid to be on the board? If the problem is the compensation, the approach to make a change is to rile up the Territorial account holders and stockholders about the money that should be used to increase their interest and dividends instead of paid to a high-priced board.
Aside from Caldwell’s corruption, if I was a Territorial shareholder, I’d seriously question whether to keep that investment as their directors seem to have terrible judgment. I can’t believe that their account holders aren’t lining up to withdraw their deposits and cancel their accounts, including refinancing their mortgages with a bank with more integrity.
Exactly. Territorial management bureaucrats, like Kirky Boy, have no clue what it means to be a leader, have high ethical and moral values, place the needs of others before theirs.
Everyone banking with them should close all their accounts and move them to a far more cost efficient, higher quality leadership, leading by example credit union where members come first.
Nothing gets an utterly incompetent management bureaucrat’s attention then when they start to lose money.
Don’t get mad. Get even.
Agree. Closed my account when I heard about this B$. People need to WAKE UP !!
Any time someone is on a board, they have a fiduciary responsibility to that entity. A broad definition of conflict of interest is a “situation in which a person has a duty to more than one person or organization, but cannot do justice to the actual or potentially adverse interests of both parties.” (From the Free Dictionary.)
In this case, Caldwell also owns stock in the bank, so removing the compensation would make the situation better, but the best thing to do would be for Caldwell to give up one of the positions.
I have a better idea. Lets FIRE kirk next month from his mayors job. Get out and vote this C L O W N out of office..
He’s sure getting a lot of endorsements; hey, what’s going on???
Pay to play baby.
Caldwell is so Corrupt and Ethically challenged its a fricken JOKE. This city has NO values and NO morals !!
Ethically wrong. Public Service requires public trust. Any hint of a potential conflict of interest, should not be tolerated and must be avoided.
Pretty disgusting. What’s even more disgusting is how he can look us straight in the eye and lie.
Second nature for shameless KROOKWELL
Nobody gets $250k without the expectation of something in return. You might as well drop the other shoe and call it the Caldwell Foundation.
You forgot to mention the TIMING aspect of this arrangement. Pre-Mayor and Post-Mayor where the amount went from ~$50K to where it stands now. That in and of itself appears suspect.
We need a mayor that puts Kirk first – Kirk Caldwell
The Kirk Caldwell banner says, “Putting People First” Too bad the “people” is Kirk Caldwell, Kirk Caldwell and finally Kirk Caldwell.
how can you say that it as not ethical when he ethics commissioner ruled that it was ethical.
Do you think this is anywhere close to appropriate? No way.
I wonder if the bank hired him before or after he became mayor ? i will not be surprised if irregularities are discovered regarding this relationship. I want the Mayor
to dedicate all of his time to the people and not time for his own personal gain. He should focus on the rail disaster. Who is the trying to fool when he says that the
rail will eventually reach Ala Moana. This will never happen because of the gross mismanagement of the money that we do have.
I don’t like Caldwell as mayor but let’s be fair.
1) Board of Directors is not a job.
2) Territorial is not a playa. If he is on the board of FHB, BOH, or ASB, yes, big problem.