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Congratulations!
You have completed ERI DLC Course 72: Nonprofit Variable Pay.
You should now be able to:
- Recognize how the Tax Cuts and Jobs Act and Intermediate Sanctions impact nonprofit pay
- Define private inurement, excess benefit transaction, and reasonable compensation
- Specify the conditions required to establish a safe harbor for reasonable compensation
- Identify the persons subject to reasonable compensation regulations
- Recognize the reasons for having variable pay in the organization
- Differentiate between different variable pay plans such as STIP, LTIP, recognition awards, and bonuses
- Identify performance measures and how they relate to outcomes at the individual, group, and organization-wide levels
- Recognize different types of reward structures such as add-on pay, at-risk pay, and base pay at risk
- Define threshold, on target, and maximum payout
- Specify how to design a variable pay plan with targeted financial or management by objectives performance measures
- Differentiate between nonqualified deferred pay plans such as deferred bonuses, vested trusts, rabbi trusts, and secular trusts
Looking to Benchmark Pay?
See our salary, cost-of-living, and executive compensation data in action.