Water utility exec to study in U.K.
Panel votes to pay for tuition, not travel, for Oxford MBA
Central Arkansas Water will pay for its chief executive officer to obtain a Master of Business Administration degree from the University of Oxford in the United Kingdom.
The utility’s Board of Commissioners voted 5-1, with one commissioner absent, Thursday to reimburse CEO Tad Bohannon up to $25,000 a year for his continuing education and conference attendance over the next five years — namely the cost of tuition, room and board to enroll in the master’s program at Oxford.
Under the agreement, Bohannon will pay for his own travel back and forth to Europe.
“If I’m going to spend time on this and it’s going to take time from my family, I wanted a top program I could look at. Two, I wanted it to be one that did not overcommit my time and where the travel schedule would work,” Bohannon said, explaining that the Oxford program runs one week at a time for a total of 16 weeks over a 20-month period starting in September.
Bohannon said he will balance the commitment of the degree program and his role leading the utility with his home life. He and his wife, Gayle, have a 10-yearold son, Spencer. Bohannon makes $192,000 a year, plus benefits, leading the utility of about 300 employees.
Oxford has a water network research committee that Bohannon will be a part of, and the university’s MBA program allows students to specialize in what they want to learn, Bohannon said.
He told the board Thursday that he researched other programs and that even with travel costs factored in, top MBA programs in the United States cost more than the Oxford degree.
He said the degree would cost 70,000 to 72,000 British pounds, which is about $90,000 under the current exchange rate.
The resolution approved by the Board of Commissioners allows reimbursement up to $25,000 per year for all of Bohannon’s education costs, including any conferences he attends or other continuing education classes he is required to take as an attorney or water utility CEO. The payments are authorized over a five-year period, ending in April 2022.
Prior to his hiring as CEO, he was the agency’s chief legal counsel for about two
years. Before that, Bohannon was contracted as an outside attorney for about 20 years through the Wright, Lindsey and Jennings law firm.
Bohannon must give a yearly report to the board on his educational pursuit. He also must pay back any reimbursement made if he breaks the law, violates agency policy or resigns before April 2022.
Bohannon assured commissioners Thursday, “I’m not going anywhere.”
Voting in favor of paying for Bohannon’s degree were Commissioners Tony Kendall, Carmen Smith, John Braune, Eddie Powell and Kandi Hughes. Commissioner Jay Hartman provided the sole “no” vote. Commissioner Roby Robertson was absent.
“I still think it’s quite a bit of an investment for this utility to make to send our CEO off to get such a prestigious degree. I think it will be great for him personally, I just don’t know if I see the value some of you guys are seeing,” Hartman said in explanation of his opposition.
Kendall, the board’s chairman, said he asked Bohannon to look into degree programs and report back to the board.
“It’s an investment in our CEO which will yield significant value for the rest of the organization over the course of the next five years we are talking about [paying for],” Kendall said.
The utility hasn’t paid for previous leaders’ degrees. Former CEO Graham Rich did not have an MBA degree.
Powell said he’s pleased that Bohannon has some “skin in the game” by paying for his own travel to and from Oxford over the course of the program.
“I’d be very proud to have a CEO that’s an Oxford graduate. I think we’ll be one of the few in the whole United States, if not the only one,” Powell said. “Rather than be skeptical, I’m very proud of you.”
Braune said he thinks an investment in the utility’s leadership will result in a better organization. Smith said the fact that Bohannon can specialize his degree with an emphasis in water utilities is unique.
Prior to the resolution, Central Arkansas Water’s CEO would get approval to attend classes or conferences from the board chairman.
Central Arkansas Water also has a policy that allows its other employees to be reimbursed for continuing their educations by taking college courses or obtaining degrees. The policy has been in place since the utility was created in 2001, in a merger of the Little Rock and North Little Rock water utilities.
Thirty employees have taken advantage of the reimbursement benefit since 2005, costing the agency $189,574.
The city of Little Rock also has a reimbursement program for its employees. Officials were unable to provide the number of employees who have used that benefit or the reimbursement total by the end of the day Thursday.
As Little Rock’s top executive, City Manager Bruce Moore doesn’t qualify for the tuition reimbursement benefit because he negotiates his salary and benefits directly with the Little Rock Board of Directors. Asked about how much per year the city spends for his continuing education, Moore said he attends three conferences per year that cost about $2,000 each.
Moore makes $186,443, plus benefits, managing city operations and more than 2,100 employees.
The resolution authorizing reimbursement to Bohannon says his “personal development is not personal, but it is fundamental to sustaining and rejuvenating the health of the organization.”
Bohannon said the master’s program will allow him to be a better leader by learning more about finance and other areas so he will know the right questions to ask his department heads.