For Board Members
The heightened scrutiny, complex regulatory framework, and increased disclosure certainly make the job of governing boards more challenging. By being proactive, governing boards and executive committee members have an opportunity to strengthen the governance oversight of their processes, thereby ensuring compliance and supporting the tax-exempt mission of their organizations.
To begin reviewing some of the processes that you currently have in place, ask yourself these questions which surround the areas of critical board responsibility:
Executive Compensation & Contracts
- Is the Philosophy in alignment with the organization’s mission and strategy?
- Does the current process address all steps necessary to establish the rebuttable presumption of reasonableness?
- Does the process evaluate the reasonableness of the total compensation package for all required positions (at a minimum the President, Provost, and CFO)?
Goal Setting & Performance Evaluation:
- Does the Board regularly solicit input from its members and other constituents about the senior executive’s leadership qualities and performance?
- Do the goals move the organization in our strategic direction?
- Is the goal setting process effectively integrated and link mission to action?
Leadership Assessment, Development, & Succession:
- Do we know which candidates may be wooed away by the competition?
- How deep is our knowledge of internal succession candidates? Not just the executive team, but also one level down.
- How ready are we if the President isn’t available to lead tomorrow?