MONTGOMERY, Ala. — Scrutiny around the Alabama Board of Pharmacy continues to grow after state lawmakers recently became aware of a nearly $255,000 payout awarded to the board’s former executive director that was “reluctantly” signed off by Gov. Kay Ivey to comply with a 2023 executive order.
Responsible for regulating pharmacists in the state, the ABP has been found in its most recent state review to have regularly acted outside its authority, including by violating open meeting laws and charging fees and fines higher than and outside of what state law permits.
“It’s offensive,” said Sen. Chris Elliott, R-Josephine, speaking with Alabama Daily News recently on the $255,000 payout. For three years, Elliott has unsuccessfully backed legislation to tighten regulation around the state’s dozens of occupational licensing boards, many of which have also been found to have issued higher fees and fines than they’re allowed by law.
“I’ve tried for years and years now to get something done on this, and you see what happens; you have all of these boards that hire lobbyists, there’s all this money floating around to continue the status quo. It’s a racket and it needs to get broken up.”
Donna Yeatman was appointed as ABP executive director in 2018 after having served on the board since 2015, but was expected to step down after a bill to reform the board, which included a provision mandating the appointment of a new executive director, passed out of committee this year and appeared likely to become law.
Acquired by ADN, the settlement agreement Yeatman was offered by the ABP, executed on Feb. 3, included a $150,000 lump sum payment, plus just under $106,000 for accrued annual, sick and personal leave, of which she had accumulated 468, 612 and eight hours of, respectively. The leave payout is calculated using her latest annual salary, which as of last October was $281,886.
Ivey signed the agreement, her office explained, to comply with Executive Order 726, which mandates how state executive branch agency settlement agreements are handled, as well as to shield the state from any potential litigation regarding Yeatman’s resignation.
“The governor reluctantly approved this settlement as required by EO726 in recognition of the ‘full settlement and compromise’ Ms. Yeatman signed waiving ‘any federal and state law claims . . . for damages, injunctive relief, or any other avenue of redress (she) may have had in the past or has now relating to her employment with the Board,'” Ivey spokesperson Gina Milola told ADN Monday.
As to what cause of action Yeatman might have against the state, as well as why the settlement agreement was in excess of $100,000, Elliott still had questions, and pledged to continue his efforts to tighten regulation around the state’s occupational licensing boards.
“This is clearly abuse, there’s no other way to look at it; the salary that’s set by the board is excessive, the paid time off is excessive, and the settlement for whatever purpose that’s not disclosed to the public, even though we’re using public money, is excessive,” Elliott told ADN.
When asked for comment on Yeatman’s settlement agreement, ADN was directed by the ABP to Scott Daniel, licensing counsel for the board, who said he could not speak on the matter having not been involved in or briefed on the agreement. Board members were given the opportunity to comment but declined to do so. Yeatman could also not be reached for comment. She is now COO for Intercept Rx, according to her LinkedIn profile.
The sole entity that provides oversight to the state’s occupational licensing boards is the legislative Sunset Committee, which regularly reviews boards’ conduct in tandem with audit reports conducted by the Alabama Department of Examiners of Public Accounts. Last year, the committee addressed significant issues with operations of several boards, including the boards of pharmacy, dental examiners and medical examiners, among others, with boards being described as “predatory” and accused of engaging in “illegal” practices.
In fiscal year 2023, the board had $5.4 million in total receipts, $4.2 million of which came from license and permit fees.
After being made aware of Yeatman’s settlement agreement, Rep. Margie Wilcox, R-Mobile, the chair of the Sunset Committee, said that the matter would be discussed during the committee’s next meeting this summer, but would reserve further comment until then.
“The Pharmacy Board remains under active Sunset review, and this matter will be addressed during the upcoming audit review and hearing this summer,” she told ADN Friday via text.
While Elliott’s bill to impose more oversight on the state’s occupational licensing boards has failed to become law, the legislation specifically reforming the ABP successfully came out of conference last week after being agreed upon by both the Alabama House and Senate, and is ready to be sent to Ivey’s desk for final approval.
Alabama House approves major reform to the state Pharmacy Board, which has been found to have regularly acted outside its authority by issuing fees higher than what’s authorized and violating open meeting laws, among other things.#ALPolitics pic.twitter.com/i6ksagbAiB
— Alexander Willis (@ReporterWillis) April 30, 2025
Carried by Rep. Kerry Underwood, R-Tuscumbia, who is also a member of the Sunset Committee, House Bill 123 would expand the ABP from five to nine members to be appointed by the governor, lieutenant governor and Senate Pro Tempore, would require the appointment of a new executive director that has not worked for the board in the past five years, and clarify the board’s ability to issue fees and fines.
“We feel like HB123 has restructured them in a way to allow the opportunity to re-establish themselves as a board, and have set their date for another Sunset review to one year,” Underwood told ADN Monday via text. “So we will have the chance to look at their activity in a few months and continue our legislative oversight in the appropriate manner. Until then I feel certain our position on every board’s operating details will be to wait and review at their Sunset hearing.”