This document is from a residents' voice publication discussing issues with the management of a community property corporation (PCM). It questions whether PCM utilizes an incentive plan for managers and asks why residents were unaware of such a plan being implemented. The document suggests looking through job descriptions and management agreements to see if an incentive plan is documented and approved. It calls for a full disclosure of past incentive and bonus costs provided to managers.

1. LWV
July 10, 2008
Residents Voice
07/10/08 Residents Voice 1

2. The age-old question;
“How should we know what we
don’t know ?”
07/10/08 Residents Voice 2

3. Why would you ask,
“Does PCM Utilize
Epistemology
in their Management
Philosophy?”
07/10/08 Residents Voice 3

4. 07/10/08 Residents Voice 4

5. For Example:
Who Would Have Thought To Ask;
• “Do we have an Incentive Plan?”
– There was no documented reference to it.
– No verbal reference to it by the GM.
• So, Why would anyone ask that question
before it came to light in late 2006?
07/10/08 Residents Voice 5

6. 07/10/08 Residents Voice 6

7. Why do we need an Incentive
Plan?
As Opposed To:
07/10/08 Residents Voice 7

8. Managerial “Carrots” in the
Corporate World
• Compensation
• Extra Bonus
• Benefits
• Responsibility
• Treat With Respect
• Expertise at Job
• Enjoys Job & Environment
07/10/08 Residents Voice 8

9. PCM Philosophy
• Apparently PCM believes that motivation
comes through Bonuses (Money).
07/10/08 Residents Voice 9

10. What is the Problem ?
• That we have an incentive plan?
– No! It may or may not be justified in the future!
• That the resident/owners were unaware of
the plan?
– Yes! Implementing a plan that costs millions
of dollars without approval of the owners is
THE PROBLEM!
07/10/08 Residents Voice 10

11. Where Could We Have Started
looking for ?????
• A Job is defined by what is called a;
“Job Description”
• This defines what is expected of an
Employee by an Employer.
• Using this Job Description to compare with
what an Employee does, defines when
employees get raises and promotions.
07/10/08 Residents Voice 11

12. Who Creates the Job Descriptions?
• Managing Agent?
– The employees are employed by PCM.
• Boards of Directors?
– They have no part in this.
– The employees belong to Managing Agent.
– Should they be involved?
• DEFINITELY!
07/10/08 Residents Voice 12

13. WHY?
• We would have recognized that the
“Incentive/Bonus Plan” if it was included in
the Job Descriptions.
• Or, WAS IT ?
07/10/08 Residents Voice 13

14. Was it In The Management
Agreement ?
• No! There is no reference to it prior to
2007.
07/10/08 Residents Voice 14

15. When Did Bonuses Originate?
• ???? 1996 ????
07/10/08 Residents Voice 15

16. How Did They Originate?
• The Managing Agent Implemented the
Incentive Program.
07/10/08 Residents Voice 16

17. Who Authorized the Incentive
Plan?
• The Managing Agent.
07/10/08 Residents Voice 17

18. Where Did The Money Come
From?
• When PCM came in under budget, 15% of
the savings went into the Bonus Plan (it is
rumored).
• By-the-way:
–What motivation is there for the
GM to have a low budget?
07/10/08 Residents Voice 18

19. Who Reviewed the Bonuses?
• Managing Agent – YES!
• Boards – NO!
07/10/08 Residents Voice 19

20. What Should We Expect Now?
• A full disclosure of all past years Bonus
and Incentive costs:
– How Much.
– Why? (The justification!)
– To Whom.
07/10/08 Residents Voice 20

21. WHY?
“To know what
we don’t know ?”
07/10/08 Residents Voice 21

22. Maybe we will learn to ask a
pertinent question and
expose something else
that we
“Don’t Know!”
07/10/08 Residents Voice 22

23. THE END
07/10/08 Residents Voice 23