SHOULD BOARD MEMBERS GET PAID?

The Florida condominium statute provides that:

Unless otherwise provided in the bylaws, the officers shall serve without compensation and at the pleasure of the board of administration. Unless otherwise provided in the bylaws, the members of the board shall serve without compensation.

The Florida HOA statute provides:

COMPENSATION PROHIBITED.A director, officer, or committee member of the association may not directly receive any salary or compensation from the association for the performance of duties as a director, officer, or committee member and may not in any other way benefit financially from service to the association. This subsection does not preclude: 

(a)Participation by such person in a financial benefit accruing to all or a significant number of members as a result of actions lawfully taken by the board or a committee of which he or she is a member, including, but not limited to, routine maintenance, repair, or replacement of community assets.

(b)Reimbursement for out-of-pocket expenses incurred by such person on behalf of the association, subject to approval in accordance with procedures established by the association’s governing documents or, in the absence of such procedures, in accordance with an approval process established by the board.

(c)Any recovery of insurance proceeds derived from a policy of insurance maintained by the association for the benefit of its members.

(d)Any fee or compensation authorized in the governing documents.

(e)Any fee or compensation authorized in advance by a vote of a majority of the voting interests voting in person or by proxy at a meeting of the members.

(f)A developer or its representative from serving as a director, officer, or committee member of the association and benefiting financially from service to the association.

 

It’s pretty clear that the idea of members of a community association Board of Directors getting paid, runs afoul to the thinking of The Florida Legislature.  Funny because the idea of some Florida Legislators getting paid runs afoul to the thinking of most Board members I know.

 

As we all know though, many people that run for the Board have no prior management, legal or accounting experience.  That does not mean that these people are not qualified for the Board.  However, I’m curious if some of you think that more candidates with professional backgrounds would run for the Board if they were able to get paid for serving.  If so, what would be a reasonable compensation to be a member of a Board?  Would it depend on the size of the community?  How about not having to pay assessments each month?

 

Or…………..should Board members serve without compensation and simply for the  overwhelming joy and appreciation they receive from everyone else in helping to run the community?

 

What do you say?  In terms of the quality of a Board member, does the old adage “you get what you pay for” hold true?

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