CEO compensation is how top executives are paid. This term includes salary, bonuses, options and other company benefits, including retirement.

CEO compensation is an outflow from effective strategic Board policy governance. It is the ultimate example of the Board “speaking with one voice,” which is the central act the Board takes in setting credit union direction. One of a successful Board’s top focuses should be to “hire, retain and motivate a focused CEO.” This is the single most important directive that a Board has, because it is what enables all of the other Board and credit union outcomes to be productive.

CEO compensation is an essential building block that the Board has at its disposal to promote organizational success and to model doing the “right thing” for the credit union as a whole. As the Board navigates best practices, avoids excuses and builds a highly effective CEO compensation program, they will be fulfilling an essential part of the Board’s responsibility in serving the membership and providing for the best possible future for the organization.

Using a step by step process Nice will help your entire Board understand the reasons, principles, processes and most common mistakes that are involved with determining CEO compensation. Nice will help you properly and fairly compensate your CEO for the work that he or she is doing which will, in turn, positively impact your entire organization.