I’m amused when someone says they believe the Arrowhead Electric Cooperative has a volunteer board of directors and then watch their reaction when told just how well the board is compensated. This June, one director ran out his twelve-year maximum term limit. Over his tenure, the board’s per diem increased from $75 to $350 for the monthly Board of Directors meeting…the board chairman receives $375.
Since AECI’s venture into broadband, an additional monthly partial day meeting and per diem have been added.
Currently, a single half-day meeting of the board costs cooperative members $2475 in per diems for the seven-member board, plus mileage reimbursements and staff support. Out-of-town meetings or training are paid per diems, with another $175 for a travel day (two days if over 300 miles away). Lodging and meals are covered and a mileage allowance is also paid. A newly elected board member receives $350 for an orientation day at AECI’s Lutsen office.
AECI bylaws state: “Board members shall not receive any salary for their services as such, except that the board may, by resolution, authorize a fixed sum for each day or portion thereof spent on Cooperative business.” Which means, of course…that they set their own compensation limits.
While other elected boards in the county (county commissioners, school board, and hospital board) consist of five members each, the AECI board has seven members…at one point there were actually nine. Perhaps as the next two AECI directors run out their maximum terms of office, the seven existing director districts could be re-apportioned to five, thus saving the cooperative thousands of dollars each year in per diems. Currently, all co-op members vote for the entire board and reducing the number of districts should have little effect on representation of the membership.
AECI cooperative members have the power to affect change, unfortunately of over 4000 co-op owner/members only 367 bothered to send in their postage paid ballots for the 2012 AECI board election. With some meaningful voter participation, the entire AECI board of directors might be replaced in less than three years.
Bob LaMettry
Grand Marais
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