McMinnville Electric System general manager and CEO Rodney Boyd was not given a raise Thursday night when board members met to review his contract.
But praise was abundant.
“I have worked with three general managers over the years and Rodney is right at the top,” said MES board vice president Sam Martin.
“He is at the top in my book,” said board chairman Jeff Golden. “That’s why we have to hog-tie him with this contract in order to make sure he sticks around.”
Boyd’s contract is for five years, up from his prior four-year contract. Also changed is the amount of time needed for separation from 90 days to 180 days. Boyd must provide a written 180-day notice if he wants to leave, and the board must do the same if it wants to terminate him.
Boyd’s salary remains unchanged. According to MES board member Sally Brock, his salary is $121,000. At that annual pay rate, Boyd’s contract is worth $605,000 over the five-year period.
Also changed in the contract is Boyd’s severance package. If Boyd is terminated without cause by the board during the contract period, MES must continue to pay Boyd his salary under the agreement and all employee benefits for the duration of the contract. If employee benefits cannot be maintained, he will be paid a sum of money which shall fairly compensate him for the loss.
Also not changed in the contract was the requirement of Boyd to make “diligent efforts to secure comparable employment” if he is terminated.
“When the general manager secures new employment, if the salary of his new employment is equal to or greater than his salary at McMinnville Electric System at the time of his termination, McMinnville Electric System’s obligation to the general manager shall cease at that time.”
If the salary is less that what he was making at MES, the contract requires MES to pay the difference for the remainder of the contract.
When Martin questioned if searching for new employment is standard procedure in employment contracts, MES legal counsel attorney Robert Newman said, “No, but it should be. All general managers should be obligated to search for employment and not ride out the remainder of their contract.”
Boyd’s contract will be up for re-negotiation in five years. However, adjustments can be made to the agreement with approval from the board.