JP Morgan Board Adhering to Pay-For-Performance Principles

by Malak Kazan, CECP, CCP, CBP, GRP 17. January 2013 14:34

One of the key principles substantiating pay-for-performance is that the executive needs to be able to impact or influence an outcome, or have some “measure of control” over the results. The Board of JP Morgan held CEO Jaime Dimon accountable for the unconventional investment approach that was not approved and, subsequently, resulted in $6B in losses, as explained in a report issued by a JPMorgan Task Force.

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Nonprofit CEO Pay Over $1 Million: Right, Wrong, or Reasonable?

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 16. January 2013 16:00

A recent article in the San Francisco Chronicle revisits the discussion of appropriate salary levels for nonprofit CEOs.  Citing data from the Chronicle of Philanthropy’s annual compensation report, the article examines two perspectives of annual salaries over $1M: “That’s Too Much for a Nonprofit CEO” and “It’s Time to Change Our Thinking.”

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ERI Compensation Data Cited by Commission Analyzing Nonprofit Executive Pay

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 28. December 2012 08:31

About two years ago, Senator Charles Grassley asked representatives of the nonprofit sector for input on key policy issues related to financial accountability.  At first, the focus was on religious groups, but it was later expanded to encompass the broader nonprofit sector. Over the past year, about 80 leaders were involved in the discussion. The final report, Enhancing Accountability for the Religious and Broader Nonprofit Sector, was issued in December 2012.

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Compensation Up for Private-College Presidents

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 10. December 2012 08:37

Received a call or letter from the alma mater asking for an end-of-year donation this holiday season?  A recent compensation survey by the Chronicle of Higher Education might prompt you to check where that donation may be applied as private-college presidents’ hefty compensation packages are on the rise.

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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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