The Marblehead Municipal Light Commission voted 3-1 on April 15 to offer a retention bonus to General Manager Joseph Kowalik after deciding not to renew his contract when it expires on April 7, 2026.
The board approved, with Commissioner Mike Hull in the dissent, a compensation package that includes a $150,000 retention bonus and potential performance bonuses totaling an additional $50,000, according to documents signed April 15.
Commissioner Jean-Jacques Yarmoff emphasized the decision was not related to Kowalik’s performance but rather part of a planned leadership transition.
“Joe came on board at a time when we were in a bad way,” Yarmoff said. “We were fighting with the town. We were fighting with the state. The Department of Public Utilities was on our case, and we were fighting with the feds. Joe righted the ship.”
The commission’s amendment #3 to Kowalik’s employment agreement specifies the retention bonus is contingent upon him remaining with the department through his contract’s conclusion. The document states the commission “discussed with Mr. Kowalik its desire to transition to a new general manager at the conclusion of Mr. Kowalik’s contract.”
Vice Chairman Simon Frechette explained the commission’s reasoning behind the retention incentive.
“When Joe asked late last year whether we would renew his contract, we were transparent in saying no,” Frechette said. “To prevent the sudden vacancy that disclosure could trigger, we repurposed the year of salary we would owe him if a successor started early into a retention bonus that incentivizes him to stay on board through his contract term ending [April 7, 2026].”
Frechette added the payment is intended to “ensure operational continuity, orderly knowledge transfer and completion of critical projects like Village 13, while showing we treat leaders fairly — trying to preserve morale and signaling to prospective hires that they can join an organization that manages transitions responsibly, not one where perceived mistreatment drives talent away.”
Kowalik has led the municipal utility since 2018 when he signed a five-year contract that was later renewed. According to his contract, Kowalik earns an annual base salary of $179,978.24 with eligibility for annual raises of up to 4% based on performance evaluations.
The Marblehead Municipal Light Department serves approximately 10,000 customers and operates with an annual budget of approximately $20 million, making it the second-largest municipal budget in town after the general town budget.
“When you think of the town in very big strokes, Marblehead budget, $100 million Select Board, the next biggest budget that residents pay into is their light. That’s $20 million,” Yarmoff explained. “If you live in Marblehead, you pay a lower electrical rate than if you lived in Salem or Lynn.”
The amendment includes three specific performance objectives that could earn Kowalik additional bonuses totaling $50,000: defining a chain of command within the organization chart and creating a succession plan, developing a three-year capital investment plan for distribution and engineering system improvements, and completing the Village 13 Substation upgrade.
For each objective met with satisfactory or better evaluation, Kowalik will receive a $16,666.67 bonus, payable by April 30, 2026.
The utility has experienced staffing challenges, with Yarmoff noting there are currently six vacant positions. He expressed concern that uncertainty about leadership could exacerbate those difficulties.
According to Commissioner Adam Smith, the board intends to begin the formal search process within the next two months, with a job posting expected by summer. According to the timeline, the board aims to identify top candidates by early 2026, allowing for overlap with Kowalik before his April 7, 2026 departure.
The commission appears to have candidates in mind already. Yarmoff indicated during the meeting that he hopes “to be able to introduce to the town, as soon as possible, a great candidate who will be able to lead the Light Commission in the future.”
That statement drew scrutiny from Hull, who questioned whether it might violate confidentiality of executive session discussions.
Yarmoff later clarified his role as leader of the Massachusetts Light Commissioners Association puts him in regular contact with commissioners and managers from the state’s 41 municipal light plants.
“Following Joe’s public mention of his contract not being renewed, we have been approached by potential candidates who are all experienced people, where their interest is clearly serious,” Yarmoff said. “We don’t know at this stage when they will be available.”
The commission cited the Village 13 Substation upgrade as a key project requiring continuity. The project, initially planned for completion in 2024, is currently scheduled for November.
Kowalik’s original contract contained a provision allowing him to leave with 60 days’ notice. The retention bonus is designed partly to prevent a sudden departure that could leave the department without leadership.
“What guided us all along is doing right by Marblehead,” Yarmoff said. “That’s why we have been elected, and why the residents of Marblehead have put their confidence in the board for better or for worse.”
Kowalik did not immediately return a request for comment.
