- Are there any laws governing board remuneration that will affect the charity? (e.g. fundraising laws in each state or corporations law)
- Will board payments affect any current funding arrangements? (e.g. are there conditions on funding that specify funds to be used in a particular way?)
- Do the charity’s rules allow for payments to board members?
- Who on the board should be paid and what is the process for determining a reasonable payment? (e.g. do all board members receive a payment? Are some board members paid more than others?)
- Are there any additional expectations that may be placed on directors in exchange for payment?
- How will the board be accountable and transparent about payment? (e.g. will it provide a remuneration report? Will members be consulted on payment?)
- How should the charity determine the amount of remuneration? (e.g. consult other similar charities? Use the services of a consultant to assist?) See the full report
Fellow WOB Director, Mary-Sue Roger has another interesting article pertaining to the global remuneration trends.
What Do You Pay Your Non-Executive Directors?
As a member of the INSEAD International Directors Programme
(IDP) Alumni, WOB Director, Mary Sue Rogers, has the opportunity to attend many excellent networking and educational events. In May INSEAD hosted a webinar with Bill Reilly
and Simon Patterson
who are senior team members at Pearl Meyer
, a consulting firm that specialises in executive compensation. The subject of the webinar was the various compensation schemes, best practice guidelines, rules and regulations regarding board compensation, both for executives and non-executive directors at board level in the USA and Europe. Mary Sue found the differences between the “two sides of the pond” especially interesting.
Read her takeaways from the thought provoking session.