Our bylaws require that the general ownership approve any change in board compensation.

Board members are responsible for the long-term vision and future of the co-op. In order to effectively govern the cooperative, board members need to understand the complexities of the business, the needs of our owners, and the changing landscape of the local economy. The board spends a substantial amount of time educating itself on a variety of issues that affect our cooperative in order to ensure that the cooperative is well positioned for continued success.

The general manager also reports directly to the board, and as such, the board is responsible for managing the cooperative’s performance in its entirety. As Seward Cooperative has evolved and grown, the board’s responsibility has also grown and become more complex. Board members contribute an average of 8 to 10 hours of work per month. This work entails monthly meetings, oversight of financial and operational metrics, policy development, owner communications, committee work, and special projects. Board members also attend an annual all-day retreat, training seminars, and other events throughout the year. The duties of the board president require an average of 20 hours a month to fulfill. The board’s governance provides owners value by ensuring their needs and interests are represented and that Seward Cooperative continues to be successful into the future.

The board has discussed compensation for approximately five years and has conducted market research to determine an appropriate compensation amount. The board feels that the proposed stipend amount aptly reflects the significant responsibility the board has for overseeing the performance of the cooperative and establishing our long-term vision.

Board compensation will not affect the margins we use to establish prices at the co-op, and it won’t add any cost to groceries. Board compensation may have a very minor effect on the amount of the Patronage Dividend declared. The cost of governance established in the board budget has typically been about 0.28 percent of annual sales. The board reworked its spending priorities, and adding board compensation to the board’s annual budget will increase the annual board budget to 0.33 percent of sales for 2013–14. It is reasonable to expect that next year an additional $5 of every $10,000 you spend at the co-op will go towards paying for board compensation.

Director compensation is an investment in the co-op’s governance. Seward Co-op’s Ends Statement requires that we maintain “equitable economic relationships.” This is reflected in our commitments to pay employees a competitive, living wage and to fairly compensate our farmers and producers. We do this because we appreciate the tremendous value they bring to our cooperative. Compensating board members for the value they bring to our owner-run organization is a further reflection of that belief. Board governance is like any other critical business function, and it requires investment, maintenance, and well-trained, experienced board members.

Board members currently receive a 10 percent store discount.

A stipend promotes inclusivity by removing financial barriers that might preclude some owners from running for the board. Seward Co-op represents a diverse community, and it is important that board participation is open to all owners, irrespective of their financial means. Providing a stipend for board participation will help ensure that Seward Co-op is abiding by its Ends to sustain a healthy community that utilizes inclusive, socially responsible practices and equitable economic relationships.

A cooperative is a business that we collectively own. Because our stated business purpose is to sustain a healthy community, and not, like most businesses, to maximize profits for investors, we appear similar to a nonprofit organization. Historically, having volunteer board members has been an economic necessity for the cooperative. As the business has grown and become more complex, we’ve invested more in board education and development. Compensating board members for the increasingly demanding and difficult work of overseeing a $30 million business seems both appropriate and equitable, and is consistent with our cooperative beliefs.

The Seward Co-op Board feels very strongly that the opportunity to serve on our board should be open to all owners. To that end, we do not have a nomination committee to screen, endorse or promote specific candidates. In our election process we try to give owners the opportunity to evaluate all candidates fairly and thoroughly.

Yes, the 10-percent discount will remain intact to encourage board members to shop at the co-op as much as possible. The discount encourages a strong board presence in the store, which provides opportunities for the board to engage with owners and employees.

There isn’t a comprehensive data set regarding the number of cooperatives in the United States that pay their board members, and the amounts that are reported vary significantly from co-op to co-op. Seward would be among a small group of very successful food cooperatives that have made such a significant commitment to their boards.

Yes. Seward Co-op has ample resources to support the proposed compensation plan.