We help you navigate the complexities of compensating investment professionals in a not-for-profit organization, from benchmarking competitive compensation levels to designing market-aligned and defensible incentive plans.
Investment professionals – whether managing the endowment for a college or university, foundation, hospital or health system – are compensated differently from the rest of the organization. We work collaboratively for boards and management, while working alongside the investment office, to ensure the following:
- The mix between base salary and incentive compensation is consistent with the organization’s philosophy and aligned with prevalent market practices.
- All components of compensation are considered when evaluating the reasonableness of chief investment officers and other disqualified persons. In addition to cash compensation, we evaluate supplemental executive retirement plans and other ways economic value is delivered to staff.
- The incentive plan is designed to reinforce the right behaviors. In doing so we look carefully at participation, metrics, performance periods, incentive opportunity levels and deferral arrangements.
- Adequate compensation design parameters documentation exists to protect the organization in the event of unintended consequences and that relative flexibility is maintained to address unforeseen events.