L-Blast | August 2019
Dear All,
Just like that, the summer break is over and the kids are back in school, excited to see what this new school year brings. We at NFPCC are also looking forward to the opportunities the busy fall season will bring as we prepare to face new challenges. We hope you enjoy the articles we have for you in this month’s L-Blast and find them helpful.
Our first piece is an NFPCC article that shares some great ideas and best practices on how to properly prepare for and hold effective board and committee meetings. As we draw closer to meeting season, we felt it would be fitting to share this useful information we have gathered from our many years of participation in boardrooms.
While on the topic of boards, the next article focuses on the ever-changing challenges directors face not only in terms of legal compliance but also the increasing importance of “best practices.” Recent legislation now expects corporate directors to implement effective steps to monitor, report and develop protocols aimed to minimize corporate risk and fiduciary litigation. This is a great read that outlines the latest best practices and how public companies can implement them.
The final piece is on nonprofits and the rise in incentive pay plans to effectively attract and retain top talent. The article offers some facts and figures about how nonprofit entities are implementing these incentive packages but if you would like further insights and guidelines on this topic, see our article “Paying For Performance In Not-For-Profits.”
We appreciate each and every one of you and as always, let us know if there is a particular subject you’d like to learn more about or if you have any questions about the topics touched in this L-Blast.
Sincerely, The NFPCC Team
Running Effective Board and Committee Meetings
NFPCC attends over 100 board and committee meetings annually. Each meeting is unique; however, there is a key factor that makes a meeting and its discussions fruitful: preparation. Benjamin Franklin once said “failing to prepare is preparing to fail.” NFPCC agrees with this adage, as an effective meeting can leave your team focused and energized. In fact, a single good or bad meeting can have a major impact on strategic initiatives, both short and long-term.
READ MORESpotlight on Boards
The ever-evolving challenges facing corporate boards prompt periodic updates to a snapshot of what is expected from the board of directors of a major public company—not just the legal rules, or the principles published by institutional investors and various corporate and investor associations, but also the aspirational “best practices” that have come to have equivalent influence on board and company behavior. So too, legislation like the Accountable Capitalism Act introduced by Senator Elizabeth Warren in 2018, and the position paper on the problems of shareholder capitalism and the merits of industrial policy by Senator Marco Rubio in 2019.
Nonprofits Step Up Incentive Pay to Stay Competitive
Nonprofits are stepping up incentive pay opportunities to attract and retain top executives, experts say.
Those already offering it as a part of compensation packages are increasing the amount CEOs can earn, said Tim Dupuis, a Detroit-based vice president for Chicago-based executive compensation firm Pearl Meyer & Partners LLC.
And smaller nonprofits that hadn’t yet begun to offer it are adding it to compensation packages.
Base salaries paid by nonprofits have generally been competitive with for-profit companies of similar size, Dupuis said. But for-profits offer larger incentive opportunities.
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