D.D. from New Haven County, Connecticut writes:
Dear Mister Condo,
We are a coop that pays a management company to pay for our porters, doorman, and office staff via a signed contract our board has with the company. The contract only lists a few office staff and their compensation and benefits. This compensation is very high, we don’t know if these employees actually are paid this amount. Are we as treasurer and finance committee allowed to see actual salaries (W2s) of these employees to see if the management company is pocketing the overage we are paying?
Mister Condo replies:
D.D., your coop has contracted for services rendered, which it would appear the management company is providing satisfactorily. I am a bit surprised that the contract lists the actual compensation for the individual employees. Far more common would be to provide the price for the services of these employees to you, the customer. Unless the service contract with the management company includes direct access to the W2 earnings of their employees, I can’t think of any reason they would share that with you. They hire and manage their employees. What they pay them is a matter between the employee and their employer. Also, they do need to make money as part of their running a successful business. It is typical for any business to earn money from the efforts of their employees. All the best!
2 thoughts on “Coop Board Concerned Over Management Company Employees’ Salaries”
Since the funds paid are directly reimbursed by the coop plus a multiplier and sales tax, I do think the cooperative has a right to know the proportion going to support staff on their site.
L.P., paying a management company for building services is not a reimbursement.Unless the agreement provides for the management company to reveal what they pay their staff, I don’t believe they are under any obligation to reveal that information.