Executive Pay for Performance

Over the past couple of weeks, there has been much discussion around executive bonuses. Should executives be paid bonuses when their companies had received bail outs from the government? Has their performance justified the bonus?

In the non-profit sector, bonuses are given very discreetly, if given at all. Many people feel that executives in the non-profit sector should not be paid very much so salaries are not readily disclosed. Discussing bonuses could quite possibly be the kiss of death! Is that right?

Personally, I think executives should be paid bonuses, but only if they improve their bottom-line which if any one has followed my blogs means that they have improved client success - not that they have just been financially sustainable. However, I also believe that agencies that are successful with their client results will also inevitably be successful in raising money, if they know how to make the right ask.

Executives, in the non-profit sector, have much to contend with on a daily basis. When you are working with people and your clients are all people, every day is different. There are so many potential issues that can arise and it is the very good executive who can strategically reduce issues and create solutions that will in the end mean greater success for the clients and everyone associated with their success.

Defining and measuring organizational outcomes is a fairly accurate way to measure overall client success. It is a strategic measure that can bring everyone together to focus on a common end goal. Executives who have stated their organizational outcomes and have shown improvement should be rewarded. In the private sector, it is perfectly acceptable and in fact motivational to reward employees that have achieved goals so why shouldn't it also be acceptable in the non-profit sector? Why do we feel we need to keep it quiet?

Something to think about!

Labels: executive bonuses, non-profit

posted by Brenda Northey @ 11:21 AM