We have come to expect, rely upon — and perhaps take for granted — the efficient and cost-effective service provided to approximately 10,000 households by our Marblehead Municipal Light Department. MMLD is governed by elected light commissioners who have typically carried out with little public fanfare their duties, one of which is to hire, oversee and periodically evaluate the general manager — since 2018, Joe Kowalik.
In 2021, Kowalik was in the midst of his initial five-year contract when the commission, presumably satisfied with his performance, chose to amend his employment agreement by extending his term for an additional three years with a new expiration date of April 7, 2026. Pursuant to this 2021 employment agreement, much like many professional baseball contracts, Kowalik was given the right to “opt out” at any time and for any reason simply by providing 60 days written notice.
Curiously, no similar right was granted to the commission. Only upon a determination of “just cause” could the commission terminate Kowalik prior to the expiration of his contractual term. If the commission decided that it did not wish to renew the 2021 agreement, it was required to give at least six months written notice to Kowalik, which would be early October 2025.
According to Vice Chair Simon Frechette, late last year Kowalik asked the commission if they intended not to renew his contract. He was told “no,” even though there was no requirement for the commission to make this declaration for months. Last month, the commission entered into an amendment to the 2021 employment agreement, committing to pay Kowalik a “retention bonus” in the amount of $150,000 next April, provided he does not exercise his 60-day opt out right during the course of this next year.
Further, if Kowalik receives satisfactory or better performance evaluations from the commission for certain enumerated objectives, he is eligible to receive up to an additional $50,000 in April. These payments are in addition to his current salary of approximately $200,000.
We recognize that there is give and take whenever employment agreements are being negotiated, but it seems in this case that the giving has been one way only. While it is unlikely that anyone would walk away from an additional $200,000, Kowalik still can do this if he provides the requisite 60 days written notice.
If commissioners were so concerned that Kowalik might leave before the expiration of his contract, why did they not insist upon his agreement to give up his right to resign in return for a guaranteed retention bonus? Kowalik gets this bonus even if the commission finds a replacement next month. All he has to do is continue to show up for work.
Since 2021, the commission has known that it could be forced to find a new general manager if Kowalik were to resign. And with any employment contract, there is always the possibility that health or other unforeseen issues could cause a job vacancy. There should always be a Plan B, and, in this case, finding an acting or interim GM from within its department has always been one such option. In our opinion, the commission overreacted to a possibility that has existed since 2021 — all at a substantial cost to the town’s electricity ratepayers.
There have been numerous complaints of possible fiscal irresponsibility and mismanagement by other town departments and boards in recent years. Unfortunately, the Light Commission can now be included in such discussions.
The Current Editorial Board
The members of the Current’seditorial board are Bob Peck, chairman of the Current; Virginia Buckingham, president of the Current's board of directors; board member Brian Birke, Current editorial staff member Kris Olson, and Joseph P. Kahn, a retired Boston Globe journalist.
