Webster Groves is cutting a sizeable final check to its outgoing top administrator. The City Council has approved a roughly $225,000 separation package for City Manager Dr. Marie Peoples as she prepares to leave in early April, a deal that folds together salary, retirement deferrals and a short-term consulting role after her last official day.
Peoples’ last day as city manager is April 3, and the agreement keeps her on call for about two more months to help with the transition. City officials said the council finalized the terms at the end of March.
What Is In The $225,000 Package
In a March 31 announcement, the city laid out the numbers in detail. The agreement includes a lump-sum payout of $138,123.90 and retirement-plan deferrals of $87,796.45. On top of that, the city will cover COBRA and accrued leave, which together bring the total to about $225,900, according to the city’s tally.
The package also covers base pay through a two-month consulting period that stretches into early June. The arrangement and full breakdown were published by the City of Webster Groves, which framed the deal as part of a structured and planned departure.
How Local Media Framed The Deal
The payout quickly landed in regional coverage, which noted the council’s signoff as Peoples prepared to exit the job. The St. Louis Post-Dispatch reported on April 2, 2026, that the council had approved the package and rounded the dollar figure to the nearest thousand. The paper described the arrangement as a standard severance structure for an executive-level municipal hire.
Peoples’ Tenure And The Transition Plan
Peoples has served as Webster Groves city manager since 2021 and was formally honored by the council in February ahead of her departure. Under the terms of the agreement, she will remain available to the city for roughly 60 days after April 3 to assist with the handoff to interim leadership and, eventually, her successor.
City announcements credit Peoples with overseeing the first comprehensive plan update in decades, guiding the use of federal ARPA funds and helping shepherd voter-backed measures such as Proposition W. In its newsletter, the City of Webster Groves said the consulting window is intended to keep key projects moving while the recruitment process for a new city manager gets underway.
Why City Hall Says The Payout Makes Sense
City leaders say the separation package is in line with Peoples’ employment agreement and matches national benchmarks from the International City/County Management Association that many cities use when hiring senior managers.
The city’s announcement also argues that negotiating a clear exit agreement can head off potential legal disputes and added attorney fees while keeping day-to-day operations steady for residents and staff during a leadership change.
“A well-structured severance agreement isn't just about the person leaving; it's about the stability of the organization they leave behind,” Mayor Laura Arnold said in the city’s statement.
