Council Member Supports New Town Manager But Questions Employment Contract

SELMA, N.C. — After the Selma Town Council voted 4-1 to hire Phillip McDaniel as the town’s next manager, Councilmember Susan Watson is explaining why she cast the lone dissenting vote.

Watson said her opposition was not directed at McDaniel’s qualifications, experience, or ability to lead the town, but rather specific provisions contained in his employment contract, which takes effect July 1.

McDaniel, Selma’s longtime fire chief and current interim town manager, was selected by the council on June 4 after serving in various leadership roles for the town over the past 18 years.

Watson said council members received copies of the proposed employment agreements shortly before a June 2 special meeting held to discuss the town manager selection and contract terms.

“On Tuesday, June 2 this council met in a special meeting to discuss our selection for town manager and the presented contracts,” Watson said. “At the end of that meeting, we were told that we would circle back to the contract on meeting number two, which would be that night, to be sure that legal had given us full guidance coming out of our special meeting and then we would make it official that Phillip McDaniel had been selected.”

“We received the contract on Monday June 1st, so we really didn’t have a lot of time to look both contracts over before the special meeting,” Watson added.

Watson stressed that her vote was based on the contract itself, not the individual being hired.

“My dissenting vote had little to do with Mr. McDaniel’s abilities to fill the position and more to do with aspects of the contract,” Watson said. “I think Phillip has served this town well and I wish him success. My concerns were with the language that was presented to us and the financial obligations that contract could place on the Town of Selma.”

Watson said her primary concern centered on severance provisions included in the agreement approved by the council. Under the contract, McDaniel is entitled to six months of severance pay if terminated by the town without cause. The agreement also contains a provision allowing him to voluntarily resign and receive severance benefits following a municipal election under certain circumstances.

According to the contract, if McDaniel provides at least 30 days written notice beginning on the date election results are certified, he may resign within 60 days after a newly elected council is seated and receive severance benefits. The agreement also requires him to execute a release waiving future claims against the town.

Watson said that provision raised significant concerns for her.

“As this contract is written, Mr. McDaniel shall have the right to resign with severance following an election cycle within 60 days of a new council being seated,” Watson said. “I had initially asked if this was normal and was told that it was not normal, but if the council passed it that it was acceptable.”

Watson said she reached out to officials in other municipalities while reviewing the agreement.

“Of the other two local municipalities that I spoke with, neither had ever heard of such,” she said.

Watson questioned whether taxpayers should be responsible for funding severance payments when an employee voluntarily leaves a position.

“In my opinion, the voluntary resignation should have limited his severance to three months,” Watson said. “Wouldn’t we all like to decide that we didn’t like the new president of our company and have the option to voluntarily quit with full severance?”

“Now, if it was a mutual agreement that the new council preferred a different town manager and the new town manager didn’t particularly want to work with the new council, then I can see that the council might choose to grant full severance,” she continued. “But assuming the financial responsibility of funding a severance package just because someone no longer wants to work with a particular council seems like a big ask to me.”

Watson also raised questions about another severance provision that would increase benefits beyond the initial two-year contract term.

The agreement states that after the initial two-year term, and provided there is a favorable performance evaluation, the manager would be granted one additional month of severance, not to exceed 12 months.

Watson said she found that language unclear and open to interpretation.

“I am a bit confused by the fact that the additional month of severance is not defined,” Watson said. “Is that an additional month per year of favorable performance after the initial two-year period? How do you get to the 12-month cap?”

Watson said she believed the agreement should have been more specific.

“In my opinion, it should have read, ‘the manager will be granted an additional month of severance per year of favorable performance after the initial two years,'” Watson said. “So the manager would have to work the third year and receive a favorable performance evaluation in order to gain an extra month of severance.”

“The contract either needed to say that, or was it the intent of the contract to grant the other six months at the council’s discretion?” she added. “I just couldn’t agree to those terms.”

Watson said she had additional questions about the contract language but felt she did not receive the legal guidance necessary to fully evaluate those concerns.

“I had additional questions, but since our legal team was not invited to the special meeting, I left with no answers,” Watson said. “The questions that I had needed legal clarity and no one on this council is qualified to give those answers.”

Despite her objections to portions of the agreement, Watson reiterated that she supports McDaniel and hopes he is successful in the position.

“So I wish the Town and Mr. McDaniels the best of luck,” she said.

McDaniel’s employment agreement, approved June 4, provides an annual salary of $130,000 and establishes an initial term running from July 1, 2026 through July 1, 2028. The agreement automatically renews for additional two-year terms unless notice is given at least 30 days before expiration.