Executive Compensation Sample Philosophy Statement

  • The compensation plan will support our organization’s mission, strategy, and values.

  • We will pay for performance, skills and competencies, development and growth, and effective visible commitment to the organization.

  • The compensation structure will encourage recruitment, retention, and motivation of outstanding executives so that the organization can achieve its mission and objectives.

  • Our compensation structure may include base salary, retirement and other benefits, and performance-based pay appropriate to the nonprofit marketplace.

  • Our compensation system will include periodic adjustments to pay ranges based on changes in the marketplace, subject to organizational financial constraints. All adjustments to pay will be consistent with practice in the nonprofit marketplace.

  • The marketplace adequacy of the compensation structure will be judged in terms of total compensation, including benefits; the total packages will be competitive with the marketplace, subject to organizational financial constraints.

  • The compensation structure will be linked to an effective performance management system with individual growth and development as well as professional achievement goals.

  • Compensation will be determined in compliance with ECFA’s Standard 6 and ECFA’s Policy for Excellence in Compensation-Setting and Related-Party Transactions.

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This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.

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