Governance tip: Provide board education

• Date: 01 March 2018
• Published date: 01 March 2018
• DOI: http://doi.org/10.1002/ban.30649

2018 Nonprofit Executive Compensation Report 5

DOI 10.1002/ban© 2018 Wiley Periodicals, Inc., A Wiley Company All rights reserved

How many executives received a bonus

in the past 12 months?

Nearly 43% of administrators who responded

to our survey late in 2017 reported receiving a

bonus. The average value of this bonus was more

than $6,000. The average salary of those CEOs

who received a bonus last year was $116,943.

Executives who earned a bonus last year

report an average salary that is about $6,000

lower, on average, as well. Maybe the trade-off

for working with no bonus structure is a higher

base salary? ■

2017 Bonuses

Percentage

Average

Salary

Median

Salary

Years of

Experience

Years in

Current

Position

Raise in

Past 12

Months Bonus Board Size

Term of

Contract

Bonus: Yes 42.5% $116,943 $114,400 27 19 6% $6,353 12 3

Bonus: No 57.5% $122,928 $136,500 33 20 3% - 13 2

Governance tip: Provide board education

One of the most effective strategies for ensuring

a healthy relationship with your board is to pro-

vide them with regular education. That’s why I am

most happy to report that nearly 33% of admin-

istrators who responded to B&A’s compensation

survey indicate they provide board education to

their boards on a monthly basis.

Thirty percent of CEOs provide board educa-

tion annually, while 22.5% educate their boards

quarterly. ■

Frequency of board education

Board Education Percentage

Average

Salary

Median

Salary

Board

Size

Years of

Experience

Years in Current

Position

Raise Past 12

Months Bonus

Term of

Contract

Annually 30% $122,856 $128,967 12 31 22 5% $7,467 2

Monthly 32.5% $114,592 $107,000 16 35 21 3% $8,214 4

Never 7.5% $113,063 $120,000 8 20 14 7% $2,300 1

Quarterly 22.5% $113,134 $115,000 9 30 20 5% $4,700 3

No Response 7.5% $164,667 $162,000 14 29 10 3% - -