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The board of Oregon Business & Industry fired OBI President Mark Johnson Tuesday night.
Here's statement from OBI board chairman Scott Parrish:
"When vague allegations were raised about OBI President Mark Johnson by a former employee, the executive committee retained an experienced outside investigator to thoroughly review and evaluate them. The details of the investigator's report are privileged, but the investigator did not find any pattern of misconduct. However, the full executive committee has learned that, on one occasion in a private meeting, Mr. Johnson made an inappropriate comment that, regardless of any joking intent, is unacceptable and wholly inconsistent with OBI's values and the values of its members. At its meeting Tuesday evening, the OBI executive committee was informed of the inappropriate comment, and reached the unanimous decision to ask Mr. Johnson to step down as CEO.
An Oregonian story today describes turmoil at OBI and suggests the comment that cost Johnson his job was about a former legislative colleague, state Rep. Diego Hernandez (D-Portland). The O quoted a former OBI staff member saying "that Johnson denigrated Rep. Diego Hernandez, 'and his chain-migration homeboys from the hood.' Two other people, who asked not to be named because of sensitive relationships to the organization, told The Oregonian/OregonLive they also heard him make those comments." Johnson told the O he didn't recall making such comments.
Johnson addressed the board's decision and apologized to Hernandez in a statement this afternoon.
"I am deeply disappointed by the executive committee's decision to ask for my resignation, but I respect the organization and the importance of its role as the voice of businesses across the state," Johnson said. "In my years of public service, including seven years serving my district in the Oregon House of Representatives, I championed efforts to provide undocumented Oregonians access to driver's cards and to obtain affordable access to college tuition. I'm proud of the work that I have done to promote equity and improve outcomes for students across our state. So it is shocking be accused of insensitivity on equity issues I have demonstrated I care about.
And I apologize to Rep. Diego Hernandez for any insensitive comments I may have made. I respect his service, as I respect the work of all of Oregon's legislators."
OBI is the result of a long-planned merger between Associated Oregon Industries and the Oregon Business Association. AOI was older, larger and more conservative and blending the two was always going to be a difficult proposition.
Related: Ex-Leaders of Oregon Business Association Dubious About Merger With Longtime Rival
The Oregonian story today makes clear that the organization's first six months have been rocky and with Johnson's termination, which follows the departure of most of his staff, there's not much of OBI left.
For the business community, Johnson's failure in the position is doubly painful because the four-term incumbent held a Hood River House seat as a Republican, despite Democrats enjoying a sizeable voter registration advantage.
Johnson's resignation last year to take the OBI job gives Democrats a good chance to pick that seat up this year and gain a supermajority of 36 seats in the House (they currently have 35 seats to Republicans 25). The supermajority issue is significant because if Democrats gain supermajorities in both chambers, they can pass tax increases on party line votes. (Democrats hold a 17 to 13 advantage, one vote shy of a super-majority, in the Senate.)
Ginny Lang, a longtime Salem business lobbyist, will lead OBI until the group selects a permanent replacement for Johnson.