MLGW board considers car allowances - WMC Action News 5 - Memphis, Tennessee

MLGW board considers car allowances

MLGW Board Members had little choice when it came to costly car allowances for current executives.

While there was a push to eliminate them and take back the money, Board Member Rick Masson said it quickly became apparent that wasn't really an option.

"It was actually stated it was compensation, it was part of their compensation in that 1998 resolution," Masson said.

Board member Nick Clark said taking back the reimbursement would essentially be cutting their salary.

"We need to be honest in terms of what is transpiring," Clark said. "This is their compensation, so let it be their compensation."

Clark said that as of January, current executives will keep their car allowance and claim it as salary, "They will not receive the opportunity for additional auto allowance unless it's a special case for example where it's cheaper to drive to Chicago than to purchase an airline ticket."

New executives however will be eligible to file for mileage reimbursements.

Board member Rick Masson, wanted to make it clear this will not cost the utility any more money.

"They are receiving the same amount of money they received tomorrow that they received today," he said.

The question that remains to be answered is whether MLGW will save any money under the new changes.

Powered by Frankly