Executive Compensation Review Policy
Statement of Purpose
A Gift For Teaching’s primary objective is to provide a reasonable and competitive executive compensation opportunity consistent with market-based compensation practices for individuals possessing the experience and skills needed to improve the overall performance of the organization. As such this policy is designed to provide an overview of the procedures utilized on behalf of A Gift For Teaching in order to review executive compensation.
It is the duty of the executive committee to administer A Gift For Teaching’s executive compensation program. The executive committee and ultimately the board are responsible for establishing and maintaining a competitive compensation package for the chief executive of the organization. The compensation session shall be held in the spring prior to fiscal year end without the chief executive present.
The executive committee shall review executive performance and comparable fair market value in determining compensation. The performance-based review should focus on the executive’s ability to meet the goals and objectives set for the prior year.
To review fair market value the board should rely upon appropriate data as to comparability. Such data shall include comprehensive market surveys, as well as comparable salaries from similar nonprofit organizations in our area to benchmark pay. (EG: EBI Bi-Annual Compensation Survey)
Once the executive committee has reviewed the executive’s performance and fair market value for compensation, the board of directors shall approve the recommendation of the executive committee.
After approval the chairman of the board shall meet with the chief executive to discuss and document the goals and agreed upon compensation for the upcoming year.