Thursday, February 27, 2014
Exit Agreements for Nonprofit CEOs: A Guide for Boards and Executives - NPQ - Nonprofit Quarterly
Exit Agreements for Nonprofit CEOs: A Guide for Boards and Executives - NPQ - Nonprofit Quarterly: When the founder or longtime executive of a nonprofit leaves an organization, the board often grapples with how to say goodbye and thank you. This question is loaded with complexities—feelings and relationships come into play, as do financial, legal, and reputational risks and rewards. There is a range of motivations for considering an exit agreement, some quite compelling. The executive, for instance, may seek a financial acknowledgment that he or she has skillfully led the organization over a long tenure—and maybe for a salary well below market rate. Still, actions that might have strong support within the board and meet the needs and expectations of the executive might not play well with the IRS, a state attorney general, or in the court of public opinion.