An inside look at Bill Stowe’s contract extension, potential $500,000 retention bonus
PERRY BEEMAN Oct 28, 2015 | 6:35 pm
3 min read time
713 wordsAll Latest News, Business Record Insider, Energy
The Des Moines Water Works board has approved retention bonuses totaling more than $500,000 for the utility’s general manager, Bill Stowe, should he stay in the job through his planned retirement in five years.
Stowe, 56, already was in line for a $90,000 payment that would come after he has served five years in the job, a milestone that is about two years away. Last month, the board added a payment worth double his salary at the time of his departure should Stowe stay through the end of 2020. Stowe’s base pay now is approximately $211,000.
Stowe wouldn’t get the money if he leaves early or is fired for cause.
Stowe’s recent five-year contract extension calls for annual raises equal to what union workers get, which has been 3 percent recently and currently is under negotiation, said board Chairman Graham Gillette.
Neither Stowe nor Gillette could say who first proposed the latest retention bonus. But Stowe said he wants to stay at Water Works through his retirement in five years at age 62.
Stowe said water and sewage-treatment utilities in much bigger markets have recruited him, but he said it would be disruptive for him to leave while the Des Moines utility pursues a nationally significant lawsuit against three northwest Iowa counties regarding nitrate pollution, negotiates for a possible regional treatment plant, and pursues a range of improvements.
Gillette agreed. At last month’s board meeting, Gillette alluded to the pressure Stowe has faced from agricultural interests as the utility pursues unprecedented regulations for farmers who, to this point, have been exempt from federal regulations that apply to other industries, sewage treatment plants and large livestock confinements.
“We are sending a strong signal that we are in full support and unanimous in our support of all the things that are going on, the lawsuit included,” Gillette said at the board meeting. Later, he told board members: “We joke about it and maybe we shouldn’t. Bill has become a certain target of some groups throughout this lawsuit. It is painful, even if not causing some personal harm to his reputation. I want to make sure that Bill understands that he has my support and he has your support.”
In an interview Wednesday, Gillette said it is in the best interests of Stowe and ratepayers to have the longtime public servant finish his career at the water utility. Stowe previously worked as Des Moines’ public works director.
“We don’t want him recruited to another place,” Gillette said. “If Chicago or D.C. came in, we aren’t going to be able to compete. There are a lot of benefits to having Bill stay here.”
Gillette added that Stowe’s work to trim staffing expenses, revamp the staff retirement system and look for efficiencies on projects more than covers the potential retention bonus.
“We support him because he is doing a fine job for us,” Gillette said. “The language of this agreement is saying, ‘please stay.’ ‘
For his part, Stowe said the bonus is “market-based.”
“I’m pretty marketable,” Stowe said. “A number of folks from much larger markets have come my way.”
But Stowe, 56, wants to finish his career in Des Moines.
“I love working for Water Works,’ he said. “We are in the midst of some difficult issues. Me moving from this position isn’t in the best interests of Water Works, and certainly isn’t in my best interest.”
Each board member had the chance to review Stowe in writing and in individual meetings. They all liked what they saw.
Leslie Gearhart, another board member, said at the board meeting: “I continue to be pretty happy with Bill Stowe. I gave him a good evaluation.”
Board member Marc Wallace said he appreciates Stowe’s work and added that union members have said Stowe is approachable and upfront with them in negotiations. “I saw a commercial recently that talked about how bad the Water Works is doing. I was unaware of this,” Wallace said, bringing laughter from other board members. He alluded to TV ads from agricultural interests painting Stowe as anti-farmer, pro-regulation and devoid of Iowa-style civility for his stance that regulations are needed to clean Iowa’s waterways, rather than the strictly voluntary measures supported by farm groups.
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