August 19, 2010 - Statement by CSBA Board of Directors

First and foremost, the CSBA Board of Directors fully appreciates the concerns expressed by our members and recognizes the seriousness of the issues before us. We are committed to restoring your confidence and trust in our leadership.

It is the responsibility of the Board of Directors to put into place the proper checks and balances necessary for ensuring an appropriate level of compensation for the executive director. Although we acted in what we thought was the best interest of the association and our members, in retrospect, we know now that we could have done better, and we take full responsibility for our actions and decisions, and we sincerely apologize.

Moving forward, we are taking actions to become more transparent and engage in active and comprehensive oversight. We are committed to making decisions based on open communications and complete information. As a demonstration of our commitment to transparency, the following documents provide an outline of executive director and senior staff salary histories, including base salary, bonus compensation (if applicable) and other compensation.

View CSBA Executive Director and Executive Staff Salary History here.

As part of our internal analysis, we realize now that the decisions made regarding the executive director’s compensation in recent years – while made with the goals of retention and recognition of his past performance and accomplishments on behalf of CSBA – were not consistent with the circumstances our member school districts and county offices of education are currently facing. The Board reviewed the executive director’s compensation incrementally, and determined the level of compensation based on snapshots of information – rather than looking comprehensively at compensation history and the long-term implications.

Compensation protocols have long been in place at CSBA, but we now realize that even stronger protocols with increased checks and balances for the Board are needed. Such protocols will be implemented by CSBA. Had they been implemented earlier, we believe the compensation of the executive director would have looked much different. We take responsibility for these decisions. While we can’t change the past, we can use this as an opportunity to make sure future compensation levels are in tune with the circumstances of our members and in line with like associations.

The CSBA Board of Directors is accountable to its members. To ensure that accountability, the Board has taken the following steps:

• Created a Financial Accountability page at www.csba.org. This webpage includes recent updates from CSBA President Frank Pugh; copies of CSBA’s IRS Form 990 filings; an outlined history of executive director and senior staff compensation; and our consolidated financial statements. We will continue to post additional information on this page.
• Directed staff to initiate the executive search process and report back next steps at the September Board of Directors meeting.
• Directed staff to initiate the process to contract for an independent financial systems review with the goal of selecting the firm at the September Board of Directors meeting.
• Directed staff to initiate a process to contract for an independent and comprehensive compensation review with the goal of selecting the firm at the September Board of Directors meeting.
• Initiated a review and analysis of CSBA’s governance structure.

The Board will move forward in addressing the following ideas to strengthen CSBA’s checks and balances:

• Establish an objective compensation procedure for the executive director position that takes the circumstances and realities of CSBA’s membership into account.
• Evaluate the timeliness and adequacy of our financial policies and procedures.
• Develop a more inclusive and comprehensive executive director evaluation process, which will include additional input to ensure continuity, consistency and accountability.
• Invite input and ongoing communication with staff.

Despite our recent challenges, CSBA has provided and will continue to provide our members with the broadest range of unparalleled programs and services, including legislative advocacy, legal advocacy, communications, policy services, policy analysis and research, leadership development, financial programs and district services programs. This year alone, we have seen notable achievements such as the filing of the School Finance lawsuit, Robles-Wong v. California, and CSBA’s California Cash Reserve program that this year provided $612 million to 139 school districts to address short-term cash flow issues. Now, more than ever, in these tough economic times, CSBA’s invaluable advocacy, information and support services give board members and administrators the resources that help them fulfill their governance and leadership roles and ensure high levels of student achievement.

Your feedback, questions and concerns are important in guiding the association on how best to move forward. We encourage you to contact President Frank Pugh, your regional director, or the association directly. We thank you for your ongoing support of CSBA.