The head of the main economic development group working to attract employers to Wilmington got a substantial bump in total compensation in fiscal year 2016-17.
 
Scott Satterfield, CEO of Wilmington Business Development, received nearly $120,000 in bonus and incentive compensation that year, which along with his base salary of about $264,000 and other pay, totaled $467,063, according to the private, non-profit organization’s IRS 990 forms.
 
A substantial portion of the $120,000 increase “was the result of a deferred compensation retention program which accrued over a number of years and was paid last year,” said Dickson McLean, chairman of WBD’s Board of Directors, in an email last month.
 
In the economic development industry, "retention" in reference to an agency leader’s compensation often refers to retaining a community's jobs and employers, experts say.
 
That requires maintaining a close relationship with existing industries, said Jim Bradshaw, workforce development business services representative for the Cape Fear Council of Governments.
 
“If you look at statistics, most job creation in a community [nationwide] is from existing industries expanding and hiring,” said Bradshaw, who previously worked as executive director of the Brunswick County Economic Development Commission.
 
In an analysis using 990 forms of economic development organizations in Wilmington’s peer and aspirational cities, Satterfield’s three-year average compensation was nearly $410,000, almost $73,000 more than the head of the Greater Raleigh Chamber of Commerce, which is the economic development agency for the city of Raleigh and surrounding areas.
 
The documents showed that Satterfield's average compensation made up 40 percent of WBD's annual revenue. The next highest percentage was that of the Roanoke Regional Partnership's leader, which at about $199,000 represented 16 percent of that group's annual revenue. 
 

Asked about whether WBD has job number targets that have been set as a goal as part of a bonus plan or not, McLean said in an email, “Given the strategic nature of WBD’s goals — i.e., a diversified regionally-based economy growing sustainable jobs into the next generation—the organization is less preoccupied with quarter-to-quarter measures than long term success for the community.  This focus dates to the organization’s founding. WBD wants good, solid companies locating and expanding in the region, bringing ongoing investment and job creation, and growing deep roots that yield both economic and social benefits here.”
 
He added, “Partnership development is also a focus; developing mutually conducive ties to community college and university allies, for example, local and state government leaders, technical partners and industry contacts — relationships that add value at the tactical and strategic levels.  In recent years, WBD has set product development as a high priority — ready-to-build industrial sites and parks equipped with the amenities and infrastructure modern businesses seek, for example.  WBD looks for progress on these and other institutional objectives, in addition to the more public items that typically make news.”
 
McLean did not answer a question about how many jobs, by WBD’s count, have been created in the past three to five years in New Hanover and Pender counties with the help of WBD. 
 
Asked for additional details about the deferred compensation retention program and how Satterfield's regular bonus is determined, McLean said in an email, “We are not going to get into detail regarding personnel matters.  The Form 990 offers a clear window into WBD’s fiscal position and financial management, both of which we view as exemplary.”
 
He added, “WBD is proud of its accomplishments with Scott Satterfield as its CEO – both in the past fiscal year and across his 25 years with the organization. In recent years, the region’s economy has welcomed significant economic investments by corporations such as Live Oak Bank, Empire Distributors, Fed Ex, National Gypsum, MojoTone and others, and WBD’s day-to-day strategic efforts have resulted in new product development and industrial infrastructure that will yield benefits for the entire region well into the next generation. WBD is grateful for the leadership of Scott, who has been recognized not just as a local economic developer but also as a statewide business leader, as his recent listing in Business North Carolina’s ‘Power 100’ alongside a Who’s Who of North Carolina corporate and non-profit titans can no doubt attest.”
 
Local governments in the Cape Fear region contributed $446,813 to WBD last year, according to city of Wilmington and New Hanover County documents and Pender County officials. In last year’s budgets, New Hanover County allocated nearly $237,000, including $40,000 for a market study involving Blue Clay Road, to WBD. The city of Wilmington’s budgeted amount was $100,000 and Pender County’s was $110,000.
 
“A majority of WBD’s revenues is from private sources, with the balance derived from service contracts with WBD’s governmental partners, which has been the basic model for many years,” McLean said in an email. 
 
Elected officials say the amount of taxpayer money given to WBD for economic development services is a bargain.
 
For Wilmington Mayor Bill Saffo, that’s because much of WBD’s revenue, which averaged a little over $1 million over the past three years, comes from private funding sources, he said.
 
Saffo said that’s also why he doesn’t have any qualms about Satterfield’s salary and bonus.
 
“If the private sector that is funding his organization, that is giving him money to help recruit, feels he’s doing a good enough job and wants to compensate him to that degree, that’s their decision,” said Saffo, who is an ex-officio member of WBD’s board and doesn’t vote on Satterfield’s salary.
 
Woody White, chairman of the New Hanover County Board of Commissioners, said, “The county gets much more value from the job WBD does than the contractual amount paid. County participation allows it to keep the public/private model, which is essential in the competitive economic development world.”
 
Asked for her opinion on WBD’s salary and job numbers, Ann Revell-Pechar, chairwoman of the Cape Fear Economic Development Council, said in an email, “We’d appeal to the City Council and County Commissioners and members of the WBD Board for more information on what has been done, how many jobs have been created, etc. And certainly for an explanation of the bonus structure. It’s the people’s money – so the people should have access to this information. Let’s be transparent about all that can possibly be shared, knowing full well that not everything that is in the works can be shared with the public.”
 
Robin Spinks, a site consultant who lives in Wilmington, said the area has numerous economic development agencies, but would benefit from having a more united voice when it comes to recruitment efforts.
 
"I think that the big picture in general is that there's no sense of joint ownership. There's just so many factions," Spinks said.
 
The Garner Report, an economic development target analysis report for Wilmington and New Hanover County completed by consulting firm Garner Economics in 2014, mentioned cooperation and awareness as challenges for economic development in this area. The report cited a “low level of cooperation between various organizations involved in economic development activity” and “low level of awareness of community regarding economic development.”

Natalie English, president and CEO of the Wilmington Chamber of Commerce, pointed out that there have been recent examples of cooperation among local groups that perform economic development tasks. 

"The teams at WBD, Brunswick Economic Development and Columbus County Economic Development cooperated and contributed as the chamber led the creation of the Choose Cape Fear campaign and they continue to provide input and feedback that further develops the campaign as an asset to our economic development work," English said in an email, referring to a campaign that aimed to capitalize on the fact that last year's Wells Fargo Championship was held in Wilmington. 

"Through that campaign, we are increasing awareness of our region as a great place to do business," English said in the email. "And, we work together when specific projects warrant further public education ensuring elected officials and the public have a better appreciation for the potential of a project's impact on our community."

In some of the most recent news that has captured community attention related to WBD recruiting efforts, the organization has been working with officials with National Gypsum Co., a national manufacturer of drywall and other related building products, as they consider reopening the company’s plant in Wilmington. National Gypsum representatives have said the change would bring 51 new jobs to Wilmington with average salaries of at least $57,000 and result in a minimum capital investment of $25 million.
 
The city of Wilmington and New Hanover County have offered incentives of up to $580,000 to entice the company to choose the Port City over a location in Florida.