Four Pinnacol Assurance executives who stirred outrage amongst state lawmakers by taking an expensive golf resort retreat will not resign, according to an e-mail sent to the company’s agents.
The e-mail newsletter entitled “Talking Points” sent to employees of the worker’s compensation company Jan.7, addressed “frequently asked questions,” including whether CEO Ken Ross and three board members who took a $300,000 trip to Pebble Beach in California in May 2010 would resign. The trip reportedly included thousands of dollars spent on food and wine, and missed tee-times, and drew criticism from legislators who felt that the expenses were irresponsible for a company that is a subdivision of the state of Colorado.
“If they’re going to play with that money of small businesses, they need to do it responsibly,” Rep. Jon Becker, R-Fort Morgan said last week.
“The board has said that Mr. Ross is the right person to lead Pinnacol and noted that his leadership of the company has put us in a strong position to serve the policyholders and the injured workers of Colorado,” the newsletter said.
Pinnacol Spokeswoman Suzi Stolte said that the e-mail — first reported by KMGH-TV — was not a secret company communication, and employees were free to share the news publicly.
The newsletter said that “business incentive events” held by Pinnacol cost less than those hosted by private companies, and that the company will continue to host such events to show appreciation for work done by company agents.
Pinnacol surrendered documents detailing the trip to KMGH-TV after a Judge ruled in December that the company had to do so under the Colorado Open Records Act. Although Pinnacol complied with that order, it is appealing that ruling.
“We continue to believe that the balance between transparency and the company’s mandate to operate as a domestic mutual insurance company is an important question that should be determined by Colorado appellate courts,” said a release issued by Stolte.
Pinnacol has never paid state taxes, a break it receives because it is an “insurer of last resort,” and must insure even risky applicants. The Joint Budget Committee of the Colorado House of Representatives is considering an option to strip away most of Pinnacol’s tax-exempt status.
The reduced tax benefit to Pinnacol would generate an estimated $3 million a year to help balance the budget,committee members said.
Kyle Glazier: 303-954-1638 or kglazier@denverpost.com
