Should you or shouldn’t you accept a pay raise?                                                                Ethics Moment               December 2006

  

You are the city manager of a bustling, growing city of 128,000 that is ranked 27th in Money Magazine's 2006 list of 100 Best Places to Live. In fact, your community is the highest ranked in your state. The crime rate is low with a city index indicating that your city is the 23^rd safest in the U.S. The city’s credit rating is a healthy AAA which enables funds for capital projects to be borrowed at the lowest possible interest rate. The city is working towards becoming one of the few cities in the nation to be recognized as a Community Wildlife Habitat by the National Wildlife Federation (NWF).

 

You have been the city manager for more than 10 years and draw a base salary of $197,000. You also receive a $7,000 vehicle allowance and a cell pone with all business calls paid.

 

City commissioners hold very positive views of your leadership, business smarts, and professionalism. In recognition of your performance, the city commission wants to give you a 10 percent raise in your base salary. City employees during the same time period were limited to a maximum of a 7 percent increase.

 

Do you take the 10 percent raise? Do you refuse to accept the 10 percent raise saying that “I appreciate the recommendation, but I am unwilling to accept any more than what our employees can receive.” Is there an ethical issue?

 

What would you do? Should you or should you not accept the 10 percent raise?

 

Source: Based on a real case. See the Florida Sun-Sentinel, September 21, 2006.