Merry MTA Christmas

WASILLA — Matanuska Telephone Association employees reportedly received a nice little Christmas gift from their chief executive officer this year — a bonus of $1,000 each.

Although MTA CEO Greg Berberich would not verify the amount of the bonuses for the company’s 350 workers when contacted Wednesday, MTA Board of Directors member Chuck Foster said Berberich had sent an e-mail to board members recently informing them of the year-end rewards.

“I’ve always been a strong consumer advocate and I believe all members of the MTA cooperative should know more about the budget and expenses,” Foster said Thursday. “Unfortunately, the MTA board has very little control over what its manager does.”

Foster said co-op members would be shocked to know that Berberich himself pulls in more than $500,000 a year when his salary, benefits and bonuses are added up.

“He makes the governor look like a pauper,” Foster said.

Berberich, who has worked for MTA for 35 years, said Wednesday that he couldn’t discuss employee bonuses because they are considered a confidential personnel matter. He also didn’t think he needs to justify them to anyone.

“Our employees did a fabulous job this last year cutting expenses and helping bring in more revenue,” Berberich said. “I felt rewarding them for that was the right thing to do.”

Berberich was quick to point out that the company distributed $2.7 million to members in capital credits this year and about $25 million in credits to members over the last 10 years.

He laughed when asked about reports that he received a bonus of $100,000 this year.

“That’s funny,” he said. “But my compensation is not for public disclosure, either. The board evaluates me every April to determine my compensation and it’s in line with other companies our size.”

Foster, however, said it’s difficult for the board to access Berberich’s salary figure because it is shielded by a confidentiality clause in his contract. He added that because the board is set up under an unusual arrangement known as the Carver model, the CEO is free to run the company without much board oversight.

“MTA is the only telecommunications cooperative in the country that is managed under the Carver model of governance,” Foster said. “The board has no dealings with the day-to-day functions of the company. Why is that?”

Co-op members also have a difficult time getting financial information from the company. He said board director Al Strawm introduced a motion more than a year ago prohibiting members from accessing meeting minutes.

“MTA spreads so much money around the community, everybody thinks they’re really neat and they are, but there are things going on that shouldn’t be kept secret,” Foster said. “It’s a cooperative. Members have a right to know where the money is going.”

According to the MTA website, power is shared among the company and it’s co-op members.

“Power is shared equally among all members,” the website states. “Co-ops are based on democratic principles. Members elect a board of directors and vote on specific issues.”

The website also states that the purpose of a cooperative is to provide a service to all its members, not to make a profit.

Board member Kim Robinson said Thursday the board often discusses how to balance the need to protect confidential financial information with making sure co-op members are kept informed of company business.

“If anyone wants to know anything, they should just call Greg (Berberich) and ask him,” Robinson said. “I get real nervous talking about personnel matters because we’re in a competitive environment now.”

Foster said he’s had a hard time finding out from Berberich during board meetings how much the company gave to the city of Palmer for sponsoring the Palmer Ice Rink, for example.

He also questions how MTA and the city can ethically enter into such an agreement when the company’s sales and marketing director, Carolyn Hanson, is married to Palmer City Councilman Brad Hanson.

Berberich said Wednesday he wasn’t sure of the exact amount MTA agreed to give the city for the rink, but thought it was somewhere around $60,000 per year over a five-year period.

He said MTA would have sponsored the new AT&T Sports Center on the Palmer-Wasilla Highway, but it would have cost the company more than $1 million just for the naming rights.

MTA’s Chief Governance Officer Earl Lackey confirmed Thursday that Berberich did give out $1,000 bonuses to all the employees this year, but agreed with Berberich that they all deserve it.

Lackey said he feels Berberich has led the company well and trusts him with budgetary decisions. He said Foster simply doesn’t understand the parameters the CEO must work within to keep the company strong.

“The employees did a tremendous job this past year,” Lackey said. “We’re real tickled with them. We still have a bottom line to watch and Greg is keeping us to the point where we are profitable and yet supplying a tremendous service to Valley residents.”

Berberich stressed that MTA has had a “very conservative” pay structure over the years and employees had to tighten their belts to save the company money.

He said employees helped bring in $100 million in annual revenues this past year.

“I told employees that if they delivered this year, I’d reward them,” he said. “I’m sure we have our detractors, but I’m comfortable with where we’re at. The employees have done a great job.”

Contact K.T. McKee at kate.mckee@frontiersman.com or 352-2252.