We hope you’ve found our series on developing a succession policy helpful as your organization faces a CEO transition. If you’re just now joining us, click here for Part 1, Part 2 and Part 3.
Without further ado, our final part in this four part series recommends…
Key Factors in Baselining the new Chief Executive Officer’s Compensation Package:
- What correlation should there be between the outgoing chief executive’s compensation and the incoming chief executive officer’s compensation?
- If the outgoing Chief Executive has been in the position for several years, odds are that his/her compensation
hasn’t kept pace with the market. - What role will compensation surveys play in the determining the new chief executive’s salary?
- Should the board use a compensation consultant to assist in determining the salary range or level?
Have you successfully completed a CEO transition? Please comment with any additional tips that your board found helpful. As always, if you are seeking counsel, we are here to help.
Tommy Thomas is Lead Partner of JobFitMatters® as well as Board Member and Managing Director of parent entity SIMA® International. He specializes in cabinet-level retained executive search for nonprofit and faith-based organizations.