Executive Compensation Solutions
Typical Client Challenges for Non-Profits
- Balancing attraction and retention of executive talent with public perception, donor expectations, and “excess benefit” or intermediate sanctions rules.
- Demonstrating reasonableness and governance rigor through the IRS rebuttable presumption process and board oversight.
Signature Solutions
- Executive Pay Philosophy and Mission Alignment: Articulation of a philosophy that ties pay to impact, stewardship, and resource constraints rather than pure shareholder value.
- Defensible Market Benchmarking and Peer Selection: Tailored peer sets (similar size, mission, geography, and funding model) and total compensation benchmarking for CEOs and key executives.
- Reasonableness Opinions and Board Documentation: Independent assessments and formal opinion letters documenting that total pay is reasonable, with supporting data and process detail.
- Incentive and Variable Pay Design: Mission and impact oriented incentive plans, if appropriate, including safeguards for compliance, optics, and donor comfort.
- Governance and Regulatory Compliance: Support for board compensation committees, policy development, conflict of interest procedures, and alignment with IRS and state charity rules.
- Executive Transitions and Retention: Structures for onboarding, retention, and succession for CEOs and senior leaders, including exit and transition arrangements.
Deliverables (Examples)
- Board‑ready “Executive Compensation Reasonableness Report” with peer group, benchmarking, and documented board process.
- CEO and C‑suite compensation philosophy and policy for inclusion in governance manuals and board minutes.