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SHOULD BOARD MEMBERS GET PAID?
By
Jan Bergemann
Published
May 10, 2013
We
often hear about these “poor volunteers” serving on the
board of directors – and what a thankless job it is. That’s
normally the overture for some proposal to pay board members for
their services – if it’s done in the open.
You
wouldn’t believe how often directors “reimburse”
themselves for their “service.” There are numerous ways to
achieve that – without letting the owners know what is
happening behind closed doors.
From
agreements of directors not having to pay monthly dues to actual
cash payments – we have seen it all! Make no mistake:
Florida
statutes don’t allow board members to get paid for serving as
a board member! But, who cares about
Florida
statutes when money is at stake?
Greedy
directors often overlook the obvious: They may need a
CAM
license if they get paid -- and they may even lose insurance
coverage through the Omissions & Error insurance policy of
the community. These policies normally don’t cover “paid
volunteers.”
In
reality, directors paying themselves often end up with lots of
legal problems on their hands – legal problems that can be
pretty costly.
Paying
board members – I have heard quite a few people advocating for
it – may actually send the wrong message – and you might get
a board that lacks knowledge, because owners run for the board
in order to create some extra income, not to serve the
community.
Is
it a good idea to create paid board members? I am all in favor
of paying professionals. And when you do, never forget: You get
what you pay for!
But
from a professional you expect competence and knowledge.
Professionals should have lengthy training before being allowed
to get a license. In my opinion even the 18-hour training for
CAMs is not sufficient.
And something like a board certification seminar maybe a great
idea for volunteers, but it falls way short of giving owners the
necessary knowledge to deserve payment for their services.
What kind of competency should be required to make a board
member a paid position? I don’t think we should open this can
of worms – it’s outright dangerous!
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