Dave Beed wrote a very informative letter to the Hot Springs Village Voice editor. He has given us permission to use his work.
I own and run an executive search firm dealing with board members and CEO’s of corporations and non-profits. When top changes are made in organizations, most meet with some form of resistance to change and leadership.
Originally I was surprised about the degree of the lack of support for our BOD and CEO. However, after witnessing the overall rush toward a CMP, the staggering “no” vote of property owners regarding the declarations, and the new “secret” CEO contract (with MAJOR changes) all suggest that the lack of trust and support is justified and lies at the feet of the BOD.
Having worked with employment contracts for decades, I recognize that the compensation for our CEO deserves scrutiny. For an organization the size of HSV, located in Arkansas, the salary and bonus potential are higher than expected, especially since expectations for the CEO are without specific and quantifiable deliverables.
The major change in the CEO contract that former board chairman Weiss signed in March, despite all the questions surrounding our CEO, is unconscionable. The number of board members needed to terminate the CEO contract was changed from 4 of 7 to an astronomical 6 of 7, requiring an 86% vote to remove our CEO rather than the normal 51% or 60%. In my many years of working to acquire executives for organizations, I have never seen anything this one-sided. The end result is that our CEO is basically bulletproof and has a contract that pays very well with very little, if any, controls.
I am sad to say that I now understand the pushback on our BOD, which will only change when the board starts putting its empty “transparency” words into actions.
by Dave Beed, August 6, 2019
Formatted by Cheryl Dowden