From Community Associations Network-Lawsuit Filed By Laguna Woods Says Professional Community Management Employees Got Paid 5 Million over 10 Years in "Incentives"

You decide, does this type of arrangement benefit a HOA or are they getting screwed? PCM in Orange County had some arrangement where employees got paid incentives-Under the plan, PCM paid employees 30 percent of the savings if projects in the community came in under budget, and the community received the remaining savings.

The problem I see here is there is a definite cause for employees to use vendors against one another, and those who might be in favor with PCM could possibly get special consideration. 

Dirty, stinks and they can say they disclosed to the Boards, but I say unethical.

Read the article starting here
LAGUNA WOODS – The boards of Laguna Woods Village’s four homeowners associations were told in closed sessions about an incentive plan that paid property management employees more than $5 million over the course of a decade, said Jerry Storage, general manager for Professional Community Management.
Storage released a statement Monday responding to a lawsuit against PCM filed by one of the associations, Third Laguna Hills Mutual, claiming fraud, negligence and elder abuse. Third Mutual, which governs more than 6,000 condominium units in the community, claimed the management company breached its fiduciary duty by not disclosing to board members and residents an employee incentive plan, according to the statement released Friday.

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