Compensation

 

pg.

 

1

 

2013 Salary & 2012 Bonus Recommendations Executive Summary

At

 

last

 

year’s

 

December

 

Board

 

meeting,

 

a

 

total

 

compensation

 

philosophy

 

and

 

salary

 

administration

 

guidelines

 

were

 

adopted

 

to

 

give

 

us

 

formal

 

guidelines

 

to

 

help

 

us

 

make

 

our

 

compensation

 

and

 

benefits

 

recommendations,

 

and

 

to

 

ensure

 

that

 

our

 

compensation

 

practices

 

are

 

competitive

 

while

 

controlling

 

costs.

 

To

 

manage

 

our

 

compensation

 

expense,

 

the

 

board

 

also

 

approved

 

our

 

strategy

 

to

 

increase

 

pay

 

to

 

market

 

levels

 

over

 

a

 

2

‐

3

 

year

 

period,

 

assuming

 

the

 

employee

 

performance

 

level

 

was

 

satisfactory

 

and

 

other

 

factors

 

such

 

as

 

skill

 

set

 

and

 

time

 

in

 

position

 

supported

 

pay

 

at

 

market

 

level.

 

The

 

salary

 

recommendations

 

for

 

2013

 

reflect

 

the

 

total

 

compensation

 

philosophy

 

that

 

was

 

approved

 

by

 

the

 

Board

 

last

 

year,

 

namely

 

to

 

offer

 

our

 

employees

 

a

 

compensation

 

that

 

is

 

on

 

average

 

at

 

the

 

midpoint

 

of 

 

similar

 

positions

 

at

 

other

 

non

‐

profits,

 

and

 

are

 

also

 

consistent

 

with

 

the

 

salary

 

administration

 

guidelines

 

that

 

were

 

established.

 

We

 

address

 

our

 

2013

 

recommendations

 

in

 

two

 

parts

 

below:

 

Foundation

 

recommendations

 

and

 

Clinton

 

Global

 

Initiative

 

(CGI)

 

recommendations.

 

Foundation

 

Recommendations

 

We

 

measure

 

our

 

compensation

 

competitiveness

 

using

 

a

 

“compa

 

ratio”

 

which

 

shows

 

how

 

closely

 

our

 

employees’

 

pay

 

matches

 

the

 

market

 

average.

 

A

 

compa

 

ratio

 

of 

 

100%

 

means

 

that

 

the

 

employee’s

 

pay

 

matched

 

the

 

average

 

market

 

rate

 

for

 

the

 

position,

 

so

 

a

 

lower

 

percentage

 

means

 

that

 

we

 

are

 

below

 

the

 

market

 

and

 

a

 

higher

 

percentage

 

means

 

we

 

are

 

above

 

the

 

market.

 

The

 

attached

 

analysis

 

shows

 

the

 

compa

 

ratio

 

for

 

each

 

group,

 

our

 

current

 

compa

 

ratio

 

(96.3%),

 

and

 

the

 

projected

 

compa

 

ratio

 

(100.5%)

 

for

 

our

 

2013

 

salary

 

recommendations.

 

These

 

recommendations

 

reflect

 

our

 

proposed

 

4%

 

budget

 

and

 

an

 

extra

 

amount

 

for

 

market

 

adjustments.

 

For

 

2013,

 

the

 

total

 

requested

 

market

 

adjustment

 

amount

 

is

 

$35,619.

 

With

 

this

 

moderate

 

market

 

adjustment

 

amount,

 

we

 

will

 

be

 

able

 

to

 

achieve

 

an

 

overall

 

100%

 

compa

 

ratio

 

and

 

reach

 

market

 

pay

 

levels

 

for

 

Foundation

 

employees

 

in

 

2013.

 

The

 

enclosed

 

“exceptions”

 

chart

 

includes

 

background

 

information

 

and

 

rationale

 

for

 

the

 

employees

 

that

 

we

 

feel

 

warrant

 

these

 

special

 

adjustments.

 

The

 

attached

 

analysis

 

also

 

shows

 

the

 

2012

 

bonus

 

recommendations,

 

with

 

an

 

expense

 

amount

 

which

 

is

 

 just

 

a

 

few

 

thousand

 

dollars

 

over

 

the

 

bonus

 

budget

 

due

 

to

 

mostly

 

minor

 

adjustments

 

made

 

to

 

a

 

handful

 

of 

 

employee

 

bonus

 

amounts.

 

 

Compensation

 

pg.

 

2

 

Clinton

 

Global

 

Initiative

 

Recommendations

 

Last

 

year,

 

we

 

reported

 

that

 

CGI

 

employees

 

were

 

on

 

average

 

significantly

 

below

 

the

 

market

 

as

 

compared

 

to

 

other

 

parts

 

of 

 

the

 

organization.

 

Given

 

CGI’s

 

low

 

2011

 

compa

 

ratio

 

(77.1%),

 

we

 

recommended

 

that

 

we

 

work

 

at

 

achieving

 

salary

 

parity

 

with

 

market

 

levels

 

over

 

a

 

2

‐

3

 

year

 

period

 

and

 

bring

 

CGI’s

 

compa

 

ratio

 

up

 

to

 

87.5%

 

through

 

special

 

market

 

adjustments,

 

a

 

strategy

 

which

 

was

 

approved

 

by

 

the

 

Board.

 

This

 

year,

 

we

 

are

 

recommending

 

another

 

special

 

market

 

adjustment

 

to

 

bring

 

CGI’s

 

compa

 

ratio

 

much

 

closer

 

to

 

market

 

levels.

 

These

 

adjustments

 

are

 

primarily

 

merit

‐

driven,

 

based

 

upon

 

the

 

recent

 

360

‐

degree

 

evaluation

 

process

 

that

 

CGI

 

conducted,

 

with

 

some

 

consideration

 

given

 

to

 

length

 

of 

 

service

 

and

 

internal

 

equity.

 

Including

 

the

 

special

 

market

 

adjustment

 

and

 

the

 

4%

 

salary

 

budget,

 

CGI’s

 

proposed

 

salary

 

increase

 

budget

 

is

 

$500,000.

 

This

 

amount

 

is

 

approximately

 

10.4%

 

of 

 

CGI’s

 

current

 

salaries.

 

Because

 

CGI

 

is

 

currently

 

working

 

on

 

their

 

individual

 

employee

 

recommendations,

 

we

 

are

 

not

 

yet

 

able

 

to

 

project

 

what

 

the

 

new

 

compa

 

ratio

 

would

 

be

 

for

 

2013.

 

However,

 

we

 

estimate

 

that

 

with

 

this

 

total

 

salary

 

increase

 

budget,

 

CGI

 

may

 

be

 

able

 

to

 

reach

 

a

 

compa

 

ratio

 

of 

 

around

 

95%.

 

We

 

look

 

forward

 

to

 

discussing

 

our

 

2013

 

salary

 

and

 

2012

 

bonus

 

recommendations

 

with

 

you.

 

Attachments:

 

Analysis

 

of 

 

2013

 

Salary

 

&

 

2012

 

Bonus

 

Recommendations

 

2013

 

Salary

 

Increase

 

Guideline

 

Exceptions

 

 

Group Employees Current

 

Salaries4%

 

2013

 

Salary

 

Budget2013

 

Salary

 

Recommendations(Over)/Under

 

BudgetAverage

 

Performance

 

RatingAverage

 

Increase

 

%Current

 

Compa

 

RatioNew

 

Compa

 

Ratio

Finance 11 $733,301 $29,332 $31,084 ($1,752) 1.8 4.2% 96.7% 100.6%Initiatives 29 $2,299,653 $91,986 $75,518 $16,468 2.1 3.3% 98.7% 101.8%Mgt

 

&

 

Admin 53 $3,822,071 $152,883 $210,699 ($57,816) 1.8 5.9% 92.8% 98.2%Pres.

 

Center 27 $1,562,526 $62,501 $55,021 $7,480 2.3 3.5% 100.3% 103.6%Grand

 

Total 120 $8,417,551 $336,702 $372,321 ($35,619) 2.0 4.6% 96.3% 100.5%

Group Employees Bonus

 

BudgetBonus

 

Recommendations(Over)/Under

 

Budget

Finance 11 $27,650 $27,900 ($250)Initiatives 29 $59,550 $59,550 $0Mgt

 

&

 

Admin 53 $117,200 $120,796 ($3,596)Pres.

 

Center 27 $61,050 $61,700 ($650)Grand

 

Total 120 $265,450 $269,946 ($4,496)

Analysis

 

of 

 

2013

 

Salary

 

Increase

 

RecommendationsAnalysis

 

of 

 

2012

 

Bonus

 

Recommendations

Compensation pg.

 

3