Questions

The Board of Directors Don't Want Answered

We invite you to ask your Board of Directors these questions:

1. Does HILCO pay you a retainer, fees for attending meetings, plus reimbursement for related expenses?  How much were you paid for HILCO related business in 2006?  How does this compare to other electric cooperatives in Texas and the U. S.?  Who sets these fees and what are you doing to change this?
   (For example, the Dist. 5 Director was compensated and reimbursed in retainers, meeting fees, expenses a total of $41,065 in 2005, $44,875 in 2006, and initially self-budgeted $53,350 for 2007 that was adjusted to $38,000 at the director’s meeting in Nov.  Most co-ops provide at most $1000 a month per director for costs and expenses with no retainers or fees – an annual cost of $12,000 each.)  See "Director's Benefits."
    

2. Are you aware that in 2006, directors were compensated by the co-op a total of $208,982 and that the district 5 director was paid the most of any of the seven directors?  In fact, wasn't the director of district 5 paid the most of any director in 2004 and 2005 as well?
   (For example, the 2004 total director’s cost was $181,407 and Dist. 5 was compensated and reimbursed $33,732;  2005 total director’s cost was $177,555 and Dist. 5 was compensated and reimbursed $37,183;  2006 total director’s cost* was $209,640 and Dist. 5 was compensated and reimbursed $45,316.)
   *2006 figures through 11/17/06
    

3.  What are the budget plans for directors’ compensation in 2007?
   (Budget projections provided to members by the HILCO, Inc. attorney reports the 2006 Approved Annual Budget at $295,300 with district 5 2006 budget set at $50,700.)
    

4. Did you know that the average compensation for 40 hour-a-week HILCO employees is approximately $38,000 a year less benefits and withholding?
    

5. The district 5 director was budgeted $12,000 in 2006 for miscellaneous meetings and was reimbursed, paid by per diem, and expenses in this account of over $16,000.  Why was the district 5 director allowed to set such a high budget for himself and overspend it by 25% as of 11/17/2006?
    

6. Will you seek a bylaw change to limit compensation paid to directors?  What recourse do members have to limit the compensation directors receive?
    

7. Why do you violate policies related to direct communications with employees?
    

8. Why don't directors follow policies pertaining to invoices?
    

9. Why do directors file invoices for benefits not received (meals/internet)?

For more info, click here to download the NRECA benefits survey (Excel format).

Rescue HILCO -- Take our Co-op Back!