Since the local government manager is usually the most highly compensated employee in the organization, the pay offered to attract, retain, or sever ties with them is a highly visible, sensitive, and sometimes political issue. For this reason, managers should ensure their efforts to obtain the compensation they deserve are reasonable and conducted in a transparent and fair process.
Consider the following best practices for executive compensation:
- The governing body has a governance role to play. The governing body should create a compensation committee of the governing body or committee of the whole to design and implement the framework for setting the manager’s compensation.
- Compensation must be benchmarked to comparable local government or public sector agencies.
- Expert advice is important. When the manager may be that expert, it is a conflict of interest to serve in that role when the manager is the beneficiary of the outcome. Encourage the governing body or chief elected official to engage experts, whether contracted or in-house, as necessary to provide this advice and information.
- The entire governing body must make decisions on compensation and benefits in a public meeting. In the interest of transparency, the pay plan with compensation ranges for local government positions, including for the manager, should be publicly accessible on the organization’s website.
Applicable Tenet and Guideline
Tenet 3. Demonstrate by word and action the highest standards of ethical conduct and integrity in all public, professional, and personal relationships in order that the member may merit the trust and respect of the elected and appointed officials, employees, and the public.
Guideline on Public Confidence. Members should conduct themselves so as to maintain public confidence in their position and profession, the integrity of their local government, and in their responsibility to uphold the public trust.
Resource
PM Magazine Articles
- Negotiating Employment Agreements and Compensation (February 2021)
- The Ethics of Compensation (February 2016)
- Second Acts: How To Survive An Ethics Misstep (March 2015)
- Navigating the Job Search Process (May 2014)
ICMA members may be asked to raise funds for ballot initiatives, community projects, and other interests.
All fundraising activities are governed by these key principles:
- Do not leverage your position for personal gain. Tenet 12 of the ICMA Code of Ethics and its guideline on gifts remind members not to leverage their position for personal gain and avoid soliciting money if the individual or the individual’s organization might view the contribution as a “favor” and expect special treatment from the member in the future. Members should exercise good judgment and refrain from soliciting funds from a business if they have a specific issue that may be coming before the local government in the near future for action or a decision.
- Refrain from asking employees to donate. Members may provide employees with information about the cause and give them an opportunity to donate if they are so inclined. Do not directly ask a subordinate to donate since this may create a situation where employees feel uncomfortable or even coerced into donating.
- Exercise discretion. Members should feel free to decline to participate in fundraising activities for any cause if they feel it is inappropriate. An option to consider is to serve in a strategic capacity offering advice on fundraising rather than personally doing the direct ask.
- Do not fundraise for candidates seeking elected office. Tenet 7 of the ICMA Code of Ethics reminds all members in service to a local government (whether it is on a full-time, part-time, or an interim basis) to “refrain from all political activities which undermine public confidence in professional administrators.”
There are a few areas concerning fundraising worthy of additional guidance:
- Projects in the Employing Local Government: To promote transparency in the process, a member should take these steps:
- Obtain governing body approval for the fundraising effort.
- Provide clear guidance and direction to staff who may be engaged in fundraising.
- Publicly announce a fundraising campaign is under way and outline the parameters of the campaign in writing.
- Regularly report on the sources and amounts of donated funds and services.
- Ballot Measures: Tenet 7 of the ICMA Code of Ethics has a guideline on “presentation of issues” that defines how members can engage in these areas. Members may assist their governing body in the presentation of issues involved in referenda such as bond issues, annexations, and other matters that affect the government entity’s operations and/or fiscal capacity.
- Financial contributions to a Political Action Committee organized to promote an issue: When advocating for an issue, comply with all legal requirements that may apply and consider the governing body’s position on the issue. If the governing body has taken an official stance, members may be obliged to represent the official position of the governing body. If the governing body has not taken an official position or is split on the issue, carefully consider how engaging in fundraising for the measure may reflect on your official responsibilities and your relationship with the governing body.
Members serving in local government may leverage their expertise to serve as a consultant or engage in other paid outside employment if the activity does not create a conflict with their official position or prevent them from effectively carrying out all aspects of their full-time, permanent position. Members should obtain prior approval from the organization, comply with any internal regulations and/or state laws regarding outside employment, ensure no public resources are used for private employment, and be clear and accurate in taking vacation or other leave as appropriate.
For members serving as a local government manager, there is the added consideration significant absences may create the appearance your focus and full attention is no longer on your employing organization and its best interest so a mindful approach is necessary.
Applicable Tenets and Guidelines
Tenet 3. Demonstrate by word and action the highest standards of ethical conduct and integrity in all public, professional, and personal relationships in order that the member may merit the trust and respect of the elected and appointed officials, employees, and the public.
Guideline on Public Confidence. Members should conduct themselves so as to maintain public confidence in their position and profession, the integrity of their local government, and in their responsibility to uphold the public trust.
Tenet 12. Public office is a public trust. A member shall not leverage his or her position for personal gain or benefit.
GUIDELINES
Private Employment. Members should not engage in, solicit, negotiate for, or promise to accept private employment, nor should they render services for private interests or conduct a private business when such employment, service, or business creates a conflict with or impairs the proper discharge of their official duties.
Teaching, lecturing, writing, or consulting are typical activities that may not involve conflict of interest, or impair the proper discharge of their official duties. Prior notification of the appointing authority is appropriate in all cases of outside employment.
Representation. Members should not represent any outside interest before any agency, whether public or private, except with the authorization of or at the direction of the appointing authority they serve.
There are very limited circumstances when it would be acceptable for a member to offer an endorsement. Provided the member does not receive any compensation, a member may endorse books or other publications; professional development or educational services a recognized educational institution or nonprofit membership organization like ICMA provides; or products and/or services where the local government has a direct economic interest such as in the case of a city-owned convention center.
Members are free to provide a verbal reference for vendors during a competitive procurement process or in response to a direct inquiry as well as serve as a professional reference during a recruitment process.
Applicable Tenet and Guideline
Tenet 12. Public office is a public trust. A member shall not leverage his or her position for personal gain or benefit.
Guideline on Endorsements. Members should not endorse commercial products or services by agreeing to use their photograph, endorsement, or quotation in paid or other commercial advertisements, marketing materials, social media, or other documents, whether the member is compensated or not for the member’s support. Members may, however, provide verbal professional references as part of the due diligence phase of competitive process or in response to a direct inquiry.
Members may agree to endorse the following, provided they do not receive any compensation: (1) books or other publications; (2) professional development or educational services provided by nonprofit membership organizations or recognized educational institutions; (3) products and/or services in which the local government has a direct economic interest.
Members’ observations, opinions, and analyses of commercial products used or tested by their local governments are appropriate and useful to the profession when included as part of professional articles and reports.
PM Magazine Articles
- Guardrails for Managing Relationships with Vendors (October 2022)
- The Murky World of Endorsements (November 2020)
There may be situations where a member serves in more than one position even for a short period of time. If faced with this circumstance, it is important to disclose to the governing body the potential conflicts with the member’s primary role so they can be appropriately managed.
There is also the need to fully think through the issue of compensation to ensure any raises for taking on additional responsibility are in line with the local government’s compensation policy and would not be so excessive or exorbitant as to undermine public trust. Some examples are if the manager needs to temporarily fill in the role of human resources director for a few weeks until that recruitment process is complete, or the local government is considering a policy change that would permit the assistant city manager to simultaneously serve as the executive director of the city’s economic development agency.
Applicable Tenet and Guidelines
Tenet 3. Demonstrate by word and action the highest standards of ethical conduct and integrity in all public, professional, and personal relationships in order that the member may merit the trust and respect of the elected and appointed officials, employees, and the public.
Guideline on Public Confidence. Members should conduct themselves so as to maintain public confidence in their position and profession, the integrity of their local government, and in their responsibility to uphold the public trust.
Guideline on Conflicting Roles. Members who serve multiple roles – either within the local government organization or externally – should avoid participating in matters that create either a conflict of interest or the perception of one. They should disclose any potential conflict to the governing body so that it can be managed appropriately.
Political neutrality has been a long-held value of the local government management profession and has been included in every version of ICMA’s Code of Ethics since the membership first adopted it in 1924. Public trust and confidence in the organization to serve all members of the community equally relies on professional staff making recommendations to the governing body that are free from political bias.
When Tenet 7 was last reviewed with the membership, the board approved the addition of a personal advocacy guideline to help members better understand their ethical obligation regarding issues of personal interest. The guideline recognizes members have a right to voice their opinion on public issues, and before taking this step, they should consider the impacts of their actions on the organization and the community. Finally, members may engage in issues of personal interest only when it does not present a conflict with their professional responsibilities.
Applicable Tenet and Guideline
Tenet 7. Refrain from all political activities which undermine public confidence in professional administrators. Refrain from participation in the election of the members of the employing legislative body.
Guideline on Personal Advocacy of Issues. Members share with their fellow citizens the right and responsibility to voice their opinion on public issues. Members may advocate for issues of personal interest only when doing so does not conflict with the performance of their official duties.
PM Magazine Articles
A conflict of interest, in its simplest form and by its very definition, occurs when your personal interests or loyalties compete with your professional obligations. The ICMA Code of Ethics references conflicts of interest over 10 times and includes guidelines to address conflicts that may stem from performing your official duty, personal relationships, investments, private employment, giving policy advice, advocating for your personal cause, and confidential information, just to name a few.
The sheer coverage of the issue in the Code serves as one more reminder: it is critical for public leaders and staff to discern when they have a conflict of interest and appropriately address it, keeping in mind their conduct directly impacts public confidence and trust in the organization, as well as the local government management profession.
Sometimes a potential issue is not a conflict of interest in actuality, but it creates the perception of one. Even the perception of a conflict of interest can be damaging to public confidence and trust for either a member personally or for the organization. It is crucial for a member to consider how elected officials, staff members, and the community will view the approach to managing any potential conflicts. ICMA’s ethics director, Jessica Cowles, is available to members for a confidential conversation to discuss the issue, provide advice and can be reached at jcowles@icma.org.
Applicable Tenets and Guidelines
Tenet 3. Demonstrate by word and action the highest standards of ethical conduct and integrity in all public, professional, and personal relationships in order that the member may merit the trust and respect of the elected and appointed officials, employees, and the public.
GUIDELINES
Public Confidence. Members should conduct themselves so as to maintain public confidence in their position and profession, the integrity of their local government, and in their responsibility to uphold the public trust.
Relationships in the Workplace. Members should not engage in an intimate or romantic relationship with any elected official or board appointee, employee they report to, one they appoint and/or supervise, either directly or indirectly, within the organization.
This guideline does not restrict personal friendships, professional mentoring, or social interactions with employees, elected officials and Board appointees.
Influence. Members should conduct their professional and personal affairs in a manner that demonstrates that they cannot be improperly influenced in the performance of their official duties.
Conflicting Roles. Members who serve multiple roles – either within the local government organization or externally – should avoid participating in matters that create either a conflict of interest or the perception of one. They should disclose any potential conflict to the governing body so that it can be managed appropriately.
Tenet 7. Refrain from all political activities which undermine public confidence in professional administrators. Refrain from participation in the election of the members of the employing legislative body.
GUIDELINES
Elections. Members share with their fellow citizens the right and responsibility to vote. However, in order not to impair their effectiveness on behalf of the local governments they serve, they shall not participate in political activities to support the candidacy of individuals running for any city, county, special district, school, state or federal offices. Specifically, they shall not endorse candidates, make financial contributions, sign or circulate petitions, or participate in fund-raising activities for individuals seeking or holding elected office.
Personal Advocacy of Issues. Members share with their fellow citizens the right and responsibility to voice their opinion on public issues. Members may advocate for issues of personal interest only when doing so does not conflict with the performance of their official duties.
Tenet 12. Public office is a public trust. A member shall not leverage his or her position for personal gain or benefit.
GUIDELINES
Gifts. Members shall not directly or indirectly solicit, accept or receive any gift if it could reasonably be perceived or inferred that the gift was intended to influence them in the performance of their official duties; or if the gift was intended to serve as a reward for any official action on their part.
The term “Gift” includes but is not limited to services, travel, meals, gift cards, tickets, or other entertainment or hospitality. Gifts of money or loans from persons other than the local government jurisdiction pursuant to normal employment practices are not acceptable.
Members should not accept any gift that could undermine public confidence. De minimus gifts may be accepted in circumstances that support the execution of the member’s official duties or serve a legitimate public purpose. In those cases, the member should determine a modest maximum dollar value based on guidance from the governing body or any applicable state or local law.
The guideline is not intended to apply to normal social practices, not associated with the member’s official duties, where gifts are exchanged among friends, associates and relatives.
Investments in Conflict with Official Duties. Members should refrain from any investment activity which would compromise the impartial and objective performance of their duties. Members should not invest or hold any investment, directly or indirectly, in any financial business, commercial, or other private transaction that creates a conflict of interest, in fact or appearance, with their official duties.
In the case of real estate, the use of confidential information and knowledge to further a member’s personal interest is not permitted. Purchases and sales which might be interpreted as speculation for quick profit should be avoided (see the guideline on “Confidential Information”). Because personal investments may appear to influence official actions and decisions, or create the appearance of impropriety, members should disclose or dispose of such investments prior to accepting a position in a local government. Should the conflict of interest arise during employment, the member should make full disclosure and/or recuse themselves prior to any official action by the governing body that may affect such investments.
This guideline is not intended to prohibit a member from having or acquiring an interest in or deriving a benefit from any investment when the interest or benefit is due to ownership by the member or the member’s family of a de minimus percentage of a corporation traded on a recognized stock exchange even though the corporation or its subsidiaries may do business with the local government.
Personal Relationships. In any instance where there is a conflict of interest, appearance of a conflict of interest, or personal financial gain of a member by virtue of a relationship with any individual, spouse/partner, group, agency, vendor or other entity, the member shall disclose the relationship to the organization. For example, if the member has a relative that works for a developer doing business with the local government, that fact should be disclosed.
Confidential Information. Members shall not disclose to others, or use to advance their personal interest, intellectual property, confidential information, or information that is not yet public knowledge, that has been acquired by them in the course of their official duties.
Information that may be in the public domain or accessible by means of an open records request, is not confidential.
Private Employment. Members should not engage in, solicit, negotiate for, or promise to accept private employment, nor should they render services for private interests or conduct a private business when such employment, service, or business creates a conflict with or impairs the proper discharge of their official duties.
Teaching, lecturing, writing, or consulting are typical activities that may not involve conflict of interest, or impair the proper discharge of their official duties. Prior notification of the appointing authority is appropriate in all cases of outside employment.
Representation. Members should not represent any outside interest before any agency, whether public or private, except with the authorization of or at the direction of the appointing authority they serve.
Endorsements. Members should not endorse commercial products or services by agreeing to use their photograph, endorsement, or quotation in paid or other commercial advertisements, not for the member’s support. Members may, however, provide verbal professional references as part of the due diligence phase of competitive process or in response to a direct inquiry.
Members may agree to endorse the following, provided they do not receive any compensation: (1) books or other publications; (2) professional development or educational services provided by nonprofit membership organizations or recognized educational institutions; (3) products and/or services in which the local government has a direct economic interest.
Members’ observations, opinions, and analyses of commercial products used or tested by their local governments are appropriate and useful to the profession when included as part of professional articles and reports.
PM Magazine Articles
- Asked and Answered on Conflicts of Interest, Part 2 (September 2024)
- Asked and Answered on Conflicts of Interest, Part 1 (February 2024)
- Be Alert to Conflicts of Interest (February 2023)
- Guardrails for Managing Relationships with Vendors (October 2022)
- Err on the Side of Caution (September 2022)
- Conflicts of Interest (February 2020)
The relationship between the manager and the governing body is crucial to the organization’s success. Honesty, transparency, and authenticity are keys to a productive relationship while dysfunction and trust issues in this relationship will likely inhibit organizational and community well-being. Since this relationship is so critical to the organization, each of the articles below offers guidance and advice on strengthening the manager-governing body dynamic.
Applicable Tenets and Guideline
Tenet 1. We believe professional management is essential to efficient and democratic local government by elected officials.
Tenet 5. Submit policy proposals to elected officials; provide them with facts, and technical and professional advice about policy options; and collaborate with them in setting goals for the community and organization.
Tenet 6. Recognize that elected representatives are accountable to their community for the decisions they make; members are responsible for implementing those decisions.
Tenet 10. Resist any encroachment on professional responsibilities, believing the member should be free to carry out official policies without interference, and handle each problem without discrimination on the basis of principle and justice.
Guideline on Information Sharing. The member should openly share information with the governing body while diligently carrying out the member’s responsibilities as set forth in the charter or enabling legislation.
PM Magazine Articles
- Whose Lane Is It? (March 2024)
- What’s on Your Wall? (May 2021)
- Do You Take the Code of Ethics for Granted? (December 2020)
- Ethics on the Global Stage (April 2020)
- Surviving the Election Season (July 2019)
- Ethics Disaster Preparedness (June 2018)
- Making Democracy Work (February 2018)
- Stay in Your Own Lane (December 2017)
- Upstream Challenges (June 2015)
