Pay-for-Performance and Executive Compensation

by Malak Kazan, CECP, CCP, CBP, GRP 26. November 2012 15:09

Pay-for-performance for executives is incentive compensation aligned to business objectives that are typically defined prior to the beginning of the performance period.  Most pay-for-performance plans are short-term incentive plans that qualify for IRC Section 162(m) tax deduction. The award amounts are derived based on a formula and reported in the Non-equity Incentive Plan Compensation column of the Proxy’s Summary Compensation Table. 

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CEO Compensation at Charities – What Influences Pay?

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 16. November 2012 08:40

A recently released report on compensation for CEOs of charities authored by Charity Navigator confirms what ERI Economic Research Institute has found in its research over the past decades – what a CEO gets paid depends on the location, the size, and the mission of the organization.

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Equity Compensation and Long-Term Focus

by Malak Kazan, CECP, CCP, CBP, GRP 16. October 2012 09:49

With the advent of Say-On-Pay and the prolonged sluggish economy, one might think that business executives are risk averse and look to retain the stock prices for shareholders as opposed to potentially attempting to increase them. One reason for this type of business leadership approach could be attributed to shareholder activism that advocate more focus on long-term results, as well as prevent excessive risk taking and the resultant Stock Ownership Policies (SOPs). 

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The Outlook for Nonprofit Executive Pay Increases

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 28. September 2012 08:45

The Chronicle of Philanthropy's annual report of executive salaries for the largest U.S. charities reported that increases of 2.5% to 3.5% were expected for nonprofit top executives in 2012 and in 2013, although some might fare better.  Expected cuts in federal and state spending would also affect nonprofit budgets, as many receive a larger proportion of their budgets from government contracts and grants than from private donations or payments for services.

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Is Nonprofit Executive Pay Too High?

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 20. September 2012 08:47

Earlier this month, the Chronicle of Philanthropy released its annual report of executive salaries in the largest U.S. charities with the headline “Executive Pay Increased by Median of 3.8% in 2011, Chronicle Survey Finds.” Bloomberg News picked up the story and covered the report with the headline “Nonprofit CEO Pay Topping $1 Million Rises with Scrutiny.”  This is an indication that the mainstream media finds high pay more interesting than moderate median increases.

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