Services | Non-Profit Executive Compensation

We recognize the particular importance of providing executive compensation consulting to non-profit organizations.  Unlike their peers at public companies, directors of non-profit Boards may be personally penalized if the IRS determines that the compensation awarded to certain executives was not “reasonable.”  Therefore, our clients often struggle to balance the need to pay competitively to retain talented executives with the desire to honor the organization’s mission and use donor resources responsibly.  Coupled with the deficit of publicly available compensation data for non-profit organizations, these factors often leave non-profit Boards challenged to determine “reasonable” pay for their executives.  We strive to partner with our non-profit clients to ensure that they have the tools and information needed to successfully navigate the questions surrounding non-profit executive compensation.

We provide the following services to non-profit Boards, among others:

Executive Compensation Strategy
– Review of current organizational objectives and relationship to the compensation program
– Development and review of executive compensation philosophy
– Establish strategy to set reasonable expectations among executives and help build consensus

Reasonableness Determination
Develop procedures for Board to systematically make compensation determinations
– Peer group assessment
– Competitive benchmarking with Form 990 disclosure and compensation survey analysis
– Written analysis as to reasonableness of compensation; reasonableness opinion

Contract Design and Negotiation
– Employment and severance agreements

Other Executive Benefits
– Supplementary retirement income plan development
– Deferred compensation and capital accumulation programs
– Retention and project incentives
– Severance plan design and drafting