Econ 332

Cooperatives

Board Assignment #2 (100 pts.)

DIRECTOR COMPENSATION

Cooperative board members are typically compensated for time and money that they spend in carrying out official director business. Boards are also responsible for determining how their co-op’s general manager is to be compensated financially. Your board, as a whole, will be compensated for the quality of work done in conjunction with each board assignment throughout the semester. This compensation will be in the form of points earned.

The issue of how to compensate individual members at the end of the semester who will have served on your board still remains. It is unlikely that, throughout the semester, everyone on your board will each have contributed equally to the work done by your board. Your board is to identify your co-op=s most preferred method of individual director compensation from those listed below. In addition, your board may suggest another alternative keeping in mind that you must abide by the following rules: 1) the maximum bonus you can give any board member is +1 point, 2) three is the maximum number of board members who can be awarded a bonus, and 3) there is no limit on the number of ‘negative’ point adjustments an individual board member can accumulate, nor is there a limit on the number of board members who can earn ‘negative’ score adjustments. Please note that, at the end of the semester, individual members of your board will receive a score for the case study assignments as recommended by your board in this assignment.

Possible options – At the end of the semester, all directors receive the total team average % score for all case studies:

1. with NO adjustments, regardless of contributions made

2. with an ‘attendance’ adjustment of -1 point for each ‘unexcused’ board meeting absence

3. with a ‘performance’ adjustment of +1 point for our board ‘president’ provided he or she (or our team) meets specified performance goals

4. with a ‘performance’ adjustment of +1 point for both our board ‘president’ and ‘secretary’ provided each (or our team) meets specified performance goals

5. with a ‘performance’ adjustment of +1 point for any board member (up to a maximum of 3) if he or she (or our team) meets specified performance goals

6. with a ‘performance’ adjustment of –X points for any board member each time they fail to meet specified performance goals (your board needs to specify “X”)