Competitive Pay Plan for a Non-Profit's Senior Executives

Situation:

A nationally recognized drug and alcohol rehabilitation center, concerned about the competitiveness of its executive pay levels and retirement benefits, wanted to validate executive compensation practices vis-a-vis its market for talent. It was also concerned about succession issues, preserving the value systems inherent in its unique culture, and ensuring compliance with incentive pay practices in the not-for-profit sector.

Process:

Consultants from D.G. McDermott Associates interviewed the organization's founding principals, key members of top management and a cross-section of the Board of Directors. We conducted a market study of executive pay levels, practices and benefits of top-tier organizations in the industry. Our consultants met with the Board of Directors to present their findings.

Solution:

D.G. McDermott Associates recommended the following:

  • A revision to the key executive pay practices.
  • Specific performance measures to support incentive pay within compliance standards for the not-for-profit sector.
  • An appropriate retirement package for the founding principals.
  • An overall revision of the performance management system so that every employee's performance review reinforced corporate values.

Outcome

The Board of Directors adopted D.G. McDermott Associates' recommendations.

 

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