Executive Compensation Policy
The Equip Foundation
The Executive Director is the principal representative of the Foundation, and the person responsible for the efficient operation of the Foundation. Therefore, it is the desire of the Foundation to provide a fair yet reasonable and not excessive compensation for the Executive Director (and any other highly compensated employees and consultants).
The annual process for determining compensation is as follows: The board of directors shall annually evaluate the Executive Director on his/her performance, and ask for his/her input on matters of performance and compensation. Board members may obtain information to make a recommendation for the compensation (salary and benefits) of the Executive Director (and other highly compensated employees or consultants) based on a review of comparability data. This data may include the following:
- Salary and benefit compensation studies by independent sources;
- Written job offers for positions at similar organizations;
- Documented telephone calls about similar positions at both nonprofit and for-profit organizations; and
- Information obtained from the IRS Form 990 filings of similar organizations.
To approve the compensation for the Executive Director (and other highly compensated employees and consultants) the board must document how it reached its decisions, including the data on which it relied, in minutes of the meeting during which the compensation was approved.
Independence in Setting Compensation
The Chair of the board of directors, who is a volunteer and not compensated by the Foundation, will operate independently without undue influence from the Executive Director.
Approved by the Board on July 28, 2016.