Coercion in Chelsea: Board President's Aggressive 5G Tower Fundraising Raises Concerns

Dear Mary:

The city plans to erect a huge 5G tower next to our building. Our board president emailed shareholders about an upcoming community board meeting on this topic, urging everyone to attend and speak up. But she went further by aggressively soliciting donations for a lobbyist who’s fighting the city on the placement of the tower. She “suggested” $750 per unit, and put a sign-up sheet at the front desk. I found this inappropriate, as did many others. Did she cross a line?

— Coerced in Chelsea

Dear Coerced:

She did. Requests from people in power can come across as demands or threats. Imagine being a shareholder who needs repairs in your unit, or board approval for upcoming renovations. You might feel that the board president will retaliate if you don’t contribute. It doesn’t matter if the president has the best of intentions. All that matters is how shareholders perceive her behavior.

That said, it’s not always easy to identify the “line.” When does a request seem coercive? When and how should the board communicate with shareholders about issues beyond those in the building itself? Here are a few things to consider as you confront similar situations.

Do you need to address the topic at all? The list of issues that might affect your shareholders is endless. Local law this and that. Nearby construction. City projects. Neighborhood events. How do you decide what warrants any communication from the board? There’s no right answer. But you need to be purposeful about what you take on so you don’t create the expectation that you’ll keep everyone informed about everything. Nor do you want shareholders to expect you to take a stand on a full range of neighborhood issues. You’ll never be able to meet such expectations. And trying to do so may distract you from pressing board responsibilities.

Are you likely to have consensus? If you decide to inform shareholders about a beyond-the-building issue, you should carefully evaluate whether to press for a particular action. You can suggest that they weigh in with an opinion. And you can share info on how to do so. But should you ask them to advocate for a specific side of the issue? Maybe … but not without considering whether you have consensus on what’s “right” for your building. Should shareholders protest congestion pricing? Well, opinions on that topic are mixed. Fight plans for that 5G tower? Yes, it’s ugly. But some shareholders might focus more on improved cell service. Share your complaints about streetlights that have stopped working, leaving the front of your building in the dark? You’re probably safe in rallying shareholders around a position on that issue.

How should you make the request? First, provide a reason, so it’s clear that this is about the greater good and not your pet project. “If we all complain to the DOT, they’re more likely to fix the broken streetlights near our entrance.” Second, give them a choice. “Here’s a link you can click on if you want to lodge a complaint.” Third, give them privacy; don’t make people publicly disclose whether they’re complying with your request. Finally, do not ask for money. Let them know that an advocacy group is pursuing a particular issue. But let that group be the one that asks for contributions.

Basic board work can be all- consuming. So be deliberate about what additional issues you take on. Consider sticking with consensus subjects. Be judicious about asking shareholders to take a particular position. And ensure you don’t come across as coercive. It’s not worth losing shareholder trust and peace in the building.