In today's competitive environment, management compensation should align with achieving the organization's mission and carrying out its strategic plan. A large and growing percentage of hospitals, colleges, universities and other non-profit organizations have decided that a portion of top management pay will vary from year to year, based on individual and institutional performance measured against annually pre-set criteria. These criteria include both internal and external benchmarks that are measurable or clearly determinable.
Yaffe & Company, Inc. assists clients not only in designing such programs, but also in developing specific benchmarks to be used in this process.
In addition, good practice dictates that the CEO and president's performance be evaluated annually on subjective criteria, such as leadership and strategic vision, organizational development, accountability, staff relations, community relations and board relations. Our process allows trustees to make their views known on these topics on a confidential basis.