Board members voted 4-2 Monday night to reduce annual compensation from an average of $21,252 per member to about $8,100.
CEO Doug Childs says the two board members who voted against the measure, Roger Shake and Todd Carpenter, would have liked to see even more drastic cuts in compensation.
The UDWI board was previously one of the highest-paid in the state. According to 2015 tax returns, board members earned an average of $28,138 per year. Only the Johnson County REMC had higher board compensation that year, with an average of $28,261.
Under the new compensation structure, directors will receive $500 per month for general duties and $200 for additional committee meetings, which occur seven to eight times per year, according to a UDWI statement. Directors who attend Indiana Electric Cooperatives meetings will receive $300 for the all-day events.
The board also eliminated mileage reimbursements for local travel and health benefits for directors. The changes are expected to save UDWI more than $157,000 a year.
Childs says those savings will be used "dollar-for-dollar to benefit members." He says those funds will be used to either reduce rates or invest in infrastructure like line repair.
Yearly Financial Audit
The Board also announced plans to conduct a yearly financials audit. Four directors make up an audit committee established after an internal audit conducted last year.
"The audit committee has chosen Monroe Shine for an audit of the 2017 UDWI financials," a UDWI statement says. "Monroe Shine has already started the review and results will be given to UDWI in the coming months."
The statement says a third-party audit of financials will be conducted every year.
Efforts To Lower Electric Rates
UDWI customers pay among the highest rates in the Midwest for electricity. Childs says the co-op is conducting a cost of service study to determine how they can reduce those electric rates.
He says they expect to have the results of the study in April and members could see reduced rates as soon as May or June.
Childs says UDWI leaders are proud of the progress made over the past few months.
