S.C. Ports Authority Board Ratified CEO Severance Deal
State operators should monitor potential transparency compliance shifts regarding executive exits.
Updated on Sept. 26, 2026 in People
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The S.C. State Ports Authority board has officially ratified a $922,780 severance package for its former CEO, Barbara Melvin. The move follows ongoing legal challenges regarding transparency in how the authority handles executive compensation agreements.
Why it matters
The lawsuit underscores the operational risks of using closed-door sessions for executive exits, forcing organizations to balance confidentiality with state transparency requirements. The board claims the ratification was necessary to resolve litigation that threatened to distract from port operations.
The $922,780 package includes $822,780 in direct payments and a $100,000 contribution to a pension account. The former CEO previously commanded an annual salary of $585,000, while the severance arrangement also provided for a consulting role billed at $350 per hour.
The players
S.C. State Ports Authority
A state-run entity that manages major maritime logistics and harbor operations in South Carolina.
Barbara Melvin
The former president and CEO of the S.C. State Ports Authority who resigned in August 2025.
Frank Heindel
A resident of Mount Pleasant who filed a lawsuit alleging state transparency law violations.
Micah Mallace
The current leader who replaced the former CEO in October 2025.
The details
The board voted unanimously to ratify the agreement during a private session after a member moved to address active litigation. A local resident, Frank Heindel, had filed a lawsuit alleging that the original August 2025 decision to approve the exit violated the S.C. Freedom of Information Act. The authority has requested a dismissal, asserting that additional public voting was not required for this specific compensation resolution.
Timeline
August 2025: The board initially approved the CEO severance agreement.
August 21, 2025: Barbara Melvin resigned as president and CEO.
August 17, 2026: Frank Heindel filed a lawsuit against the SPA board.
September 22, 2026: The board voted to ratify the severance agreement.
October 20, 2026: A court hearing for the lawsuit is scheduled.
Market Landscape
This dispute marks a test of whether executive compensation ratifications made behind closed doors comply with the transparency standards set by the S.C. Freedom of Information Act. The outcome will likely influence how state-affiliated boards navigate the documentation and notice requirements for executive departures.
Operators should review their own board policies regarding public notice and transparency for executive departures to ensure compliance with state-specific open meeting acts. Consult with legal counsel regarding whether your internal voting procedures for severance agreements require broader disclosures to mitigate litigation risk.
The takeaway
Transparency is a core operational requirement for public-facing boards, and private compensation decisions are frequent targets for legal challenges. Review the specific public notice requirements for executive matters in your jurisdiction to ensure that board resolutions remain defensible.
What happens next
A court hearing regarding the transparency lawsuit is scheduled for October 20, 2026.
Further reading
For more on personnel changes and executive management, visit People.
Source note: This article includes information reported by Post and Courier.
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