Recently published in Nonprofit Quarterly, LCW Partner Casey Williams provides expert guidance on how nonprofit boards can confidently navigate the complex task of determining executive compensation. Williams outlines the legal and practical considerations boards must address, including ensuring compensation is “reasonable and not excessive,” leveraging comparability data, documenting decisions thoroughly, and maintaining ongoing oversight of executive pay and expenses.
Williams emphasizes the importance of aligning compensation decisions with organizational values, stakeholder expectations, and public perception to withstand scrutiny. With IRS regulations requiring boards to justify their decisions, Williams recommends robust governance training and a structured process to create defensible compensation packages that support organizational success.
To access the full article, please click the following link: https://nonprofitquarterly.org/how-boards-can-confidently-assess-executive-pay/