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SCIF's Charles Savage Canned

In what can be called not a hugely unexpected turn of events for those watching the situation at scandal plagued State Compensation Insurance Fund, Charles Savage has been terminated as Vice President for Legal. He is the most recent to go. He has accepted a lesser job at the carrier.

While State Fund officials indicate publicly that this change is not part of the ongoing investigation of activities at the carrier it is known that Savage was appointed to Executive Committee by now fired former president James C. "Jim" Tudor.

Officials say on the record that the Board decided that the carrier needed new leadership and the change was made. But the position is that of chief compliance officer and others close to the situation call the move part of the ongoing regime change.

Savage in fact was originally chosen over his then boss Chief Counsel Robert "Bob" Daneri, a departure from normal civil service procedures. Now, Savage will be leaving the "16th floor" as the executive suite is known, for the 3rd floor and working back under his old boss Daneri.

Under civil service rules, Savage, as vice president, had a CEA – Career Executive Assignment – which is an exempt position. He retained and exercised his right to go back to the job he held prior to the appointment.

He has chosen to exercise that right and is going back as Assistant Chief Counsel for large litigation. The salary difference is estimated at $45,000 per year.

A story is expected in the Los Angeles Times tomorrow.

-30-

Filed by Dale Debber in Sacramento

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