OUR TURN: Time for PEC leaders to abolish their pay

There have been many reforms to come from the Pedernales Electric Cooperative board since scandals broke more than three years ago over exorbitant pay, virtually closed elections and questionable business practices.

The voting directors’ and advisory directors’ pay has been trimmed, elections are open to all members so long as the required number of signatures are collected and only one advisory director position remains.

These are all steps befitting the mostly new, progressive directors of the nation’s largest member-owned electric cooperative.

Now the time has come for these reformers to take the next step by deciding to completely eliminate pay for all board members. They should forgo their salaries as a matter of principle.

The seven directors and one at-large advisory director must continue their overhaul of PEC, a 70-year-old quasi-governmental utility created to provide electricity to rural Central Texas, and that includes abolishing what is basically a salary.

They can adopt the practice that many other boards and councils follow in the pursuit of public service, which is to recognize their duty to ratepayers and to work for the good of the people without looking for a paycheck.

If the board members truly feel called to public service — yes, PEC is a nonprofit, but its 220,000 members constitute the public — then they should serve without the need to collect a paycheck.

In keeping with the practices of other boards and councils, they could be paid a small stipend for travel costs and occasional board-approved expenses, but nothing more. Certainly nothing that equates to a salary.

PEC came under fire in 2007 after it was revealed some board members took home more than $40,000-$50,000 per year for just a few hours of work each week.

The public erupted in outrage, and a class-action lawsuit was filed that was eventually settled. Several board members and advisory board members also stepped down over time.

Currently, board members earn a $1,500 flat rate per month, in addition to $750 for full board meetings and $500 for committee meetings. Those amounts were set in 2008 after an earlier committee recommended capping director compensation and benefits at levels below $39,000 per year.

Agreed, that is somewhat of an improvement over the previous pay scale for attending a few meetings, but the dollar amount is still far too high for what should be a leadership role in the community where helping the public is all the compensation that’s needed.

Most city councils in the area are not paid, nor are city commissions or even economic development corporations.

Still, if one wishes to compare apples to apples, consider the 15-member board of the Lower Colorado River Authority. While they are appointed by the governor for six-year terms, their pay — while still hefty — is a lot less than PEC’s.

According to new rules approved in 2009, LCRA directors are paid a flat fee of $150 for showing up at a board meeting or performing other LCRA-related duties. Nor can any director be paid for more than 150 days of LCRA functions. They are also reimbursed for certain travel expenses and meals or other costs that exceed $25 per day.

This scale is more palatable than the substantive sums being drawn by PEC officials, but it would be best if all such boards served for free out of a vested interest in the public good.

Last week, PEC directors assigned Board President Larry Landaker, District 7 Director Patrick Cox, Vice President Cristi Clement and District 5 Director R.B. Felps to a new committee formed to investigate pay for board members and top executives.

Their conclusion should be a simple: Abolish directors’ pay. Let service for the common good be payment enough.

The Daily Tribune editorial board includes Dan Alvey, Amber Alvey Weems, Thomas Edwards, Chris Porter and Daniel Clifton.