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5 Things Every Nonprofit Director Should Know About Executive Compensation
Recently published in Nonprofit Pro, LCW Partner Casey Williams and Attorney Nandini Ruparel outline five essential considerations for nonprofit directors when reviewing and approving executive compensation. They emphasize the board’s critical governance role in ensuring compensation aligns with the organization’s mission and complies with legal standards. Williams and Ruparel detail the IRS three-step process for determining reasonable compensation, the importance of understanding state-specific laws, and the need for clear communication between the board and the CEO. They also highlight the necessity of tying compensation decisions to comprehensive performance evaluations. By following these guidelines, nonprofit boards can attract and retain top leadership while safeguarding the organization’s integrity and effectiveness.
To access the full article, please click the following link: https://www.nonprofitpro.com/post/5-things-every-nonprofit-director-should-know-about-executive-compensation/