“Nonprofit” Executive Performance Pay?

Here’s a riddle for the weekend:

If an organization is considering Performance Pay for its CEO, what is “performance?”

The answer in a “nonprofit organization” is usually about fundraising – money.

But is having the means to provide service the only measure of performance? Isn’t real performance about end results? In a Community Benefit Organization, isn’t real performance about Community Benefit?

I wrote the other day that words matter. The choice of seeing our work as “nonprofit” vs. “community benefit” changes so much of how we see things.

The board of a “nonprofit hospital” might logically consider basing performance pay on “profitability.”

But what happens when they are not considered a “nonprofit hospital” – what happens when they are considered a “Community Benefit Hospital?”

What, then, is “performance” – in any Community Benefit organization? And how do we measure and reward for that?

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