This week’s topic: “Compensation of Board Members” sure lit up the comment boxes. We saw very opposing views on that matter – and it got pretty heated. This is an issue that has been discussed for many years with the result that the legislature passed laws more or less prohibiting compensation of board members. See Eric’s Blog from Monday!

In all fairness, there are many good board members who work really hard and spend lots of time trying to do what’s best for the community. But there are as well many board members who think that being a board member increases their social standing. Many of them barely know the number of the statutes that regulate their association.

As much as I can understand that hard-working, knowledgeable board members should be compensated for their service, I don’t think that anybody could be in favor of paying the second category – the folks that fill the seats because they like to be called Mr. President?

Where do you want to draw the line if you are in favor of compensation?

And what happens to board members who get paid, but make serious mistakes? Because if they get paid, the excuse: “I’m just a volunteer” is no longer valid. Suddenly the same board member is a paid professional. No more excuses like using the business judgment rule: “I didn’t know better – I acted in good faith!” So, you got paid for not knowing what you’re doing?
  
Wouldn’t you expect somebody you pay for his/her work to have a certain amount of knowledge?

Actually, compensating owners for their service on the board opens a whole can of worms for these “former” volunteers.

If board members get paid, should they still be indemnified? Shouldn’t they be licensed, showing that they have minimum a basic understanding of the job they are getting paid for?

Or: Is it really wise to pay somebody who may not know what he/she is doing?

Let’s be honest, human nature is most often to blame for many of the problems owners living in community associations are facing on a daily basis. You know: Power corrupts – and more power corrupts even more!   Being an owner, do you want to pay somebody who is a bully and wannabe dictator? Isn’t it bad enough if this president is wasting your money by paying the association attorney as personal body-guard?

We all know: There are always two sides to each story! And in the discussion about compensating board members there will always be two opposing sides.

My question to all the board members who are in favor of being compensated for their services: If you like to be paid for your services to the community, are you as well willing to take on the responsibility coming with a paid job?

I see daily examples of board members making serious mistakes. And I always hear the same excuse: I’m just a volunteer!
 
That excuse falls by the wayside if board members are being compensated. Would these same board members favoring compensation be willing to take on the high risk of liability coming with a paid job?