Hot New PEC Topics: Board Term Limits and Compensation

By Linda Kaye Rogers

The hot new topics of discussion, debate and argument among the PEC Watchdog group is term limits and compensation for the PEC Board. (The PEC4U Watchdogs are a discussion forum online and anyone is welcome to join and participate. Email: Watchdogs@ pec4u.org and put “subscribe” in the subject box.)

Everyone recognizes that previous board compensation, travel expenses and perks were highly inflated. Travel expenses have been revised and reduced to a reasonable standard, much to the chagrin of the current board members. Perks such as insurance and retirement are yet to be reviewed.

The actual compensation of the board and advisory directors is under review. The agency hired to do the investigation/audit, Navigant, has been instructed to review board compensations across the country and present the findings to a committee, headed by Libby Linebarger, Advisor-at-large. In turn this committee will review the findings and present a proposal to the board. This may be at the May meeting or not until the June meeting when the new board members are seated.

The Watchdogs have presented their own thoughts ranging from no compensation to a comparison to EXXON Board Directors who receive a base rate of $40,000 plus $3000 per meeting (not even a consideration). There are a few voices who feel the position should be viewed completely as one of service and therefore reap no compensation.

Many Watchdogs have pointed out that the directors have a great deal of responsibility, albeit not met in the past, and must receive adequate compensation for their time and intelligence. Adequate is still the key issue. But it is clear that the board is going to be functioning in a much greater capacity than before. General Manager Juan Garza is saying that anywhere from 6-12 hours per week will be required, plus outside meetings, seminars, conferences, etc.

Since the compensation has been so exorbitant in the past, many fear that the motivations of some would-be directors is just for the money. There is no doubt that compensation will be reduced, which should deter that motivation.

Another argument is that if there is no compensation, then only the older, retired and wealthier members will step up to the plate, and this would not be a good representation of the members. And it could end up being just like what we already have.

Term limits is another hotly contested matter. There is more agreement on this one. PEC's current by-laws set no limit on how long a director can sit on the board. Thus we have had some of the same directors since the ‘70s. It is generally felt that stagnation, complacency and loss of focus result with unlimited terms -- not to mention a greater likelihood for corruption.

So, Watchdogs are debating the number of terms deemed best to fit the needs of the members. The general consensus is 2-3 terms of 3 years each. These discussions include considerations for the expertise and experience gained by a director over time vs. the need for new input and opportunity for more members to serve. Some have pointed out that if we get a really good director, do we want to force him/her out by a term limit? So then someone suggested a one term “rest” (3 years) before running for the board again. Everyone agrees that too much time on the board does not create a healthy business climate.

The fact that from now on we get to vote for our directors will hopefully protect us from the Good Old Boy system that has dominated the PEC Board since inception in 1938. If we make a bad decision, at least it will be one that WE as members have made. I am personally optimistic that members will be wise and judicious in their choices.

Another issue with Watchdogs and Candidates is the advisory directors: what do they do and do we need them? Again almost everyone is in agreement that they serve little purpose other than warming a seat and collecting a check. There may be something we don’t know, but “dismiss” them is the majority view.

Some Candidates are beginning to campaign in favor of redistricting and adding two districts for a total of nine. Since the old Kimble County Coop merger with PEC in 2000, that whole area has not had a voting director and is connected to Blanco, Horseshoe Bay, Johnson City and Marble Falls as part of District 5. Now that Candidates have been made aware of this, there is strong sentiment that they be properly and fairly represented.

CHANGE is the keyword as we get nearer to seating 3 new voting directors on the PEC board. What actually happens and how long it takes remains to be seen, but changes ARE coming.

Linda Kaye Rogers grew up on a small family farm in the Rio Grande Valley. She received her BA and Masters of Science in Social Work from UT Arlington. She has taught smoking cessation, communication skills, stress management and parenting in hospitals, corporations, community groups and churches. Linda Kaye moved to Wimberley in 2000 where she built a straw-bale cottage and immediately established a rainwater collection system as her water supply. That same year she began volunteering at the Katherine Anne Porter School and has worked in various capacities at the school. She is an avid organic gardener, animal lover, conservationist, and environmentalist. In 2005 she spearheaded efforts to defeat a road bond that would have benefited a developer and cost Woodcreek North residents a dramatic and 20-year tax increase. Linda Kaye is a member of PEC4u, the group of PEC members who initiated the investigation of PEC Board governance and practice.