In order to recruit and retain effective leaders able to advance rigorous strategic goals, many boards offer a variety of compensation packages for institutional presidents and chancellors.
Our most recent Quick Governance Survey sought to understand the national trends in presidential variable pay, also known as bonuses or performance pay.
While full results will appear in the July/August issue of Trusteeship magazine, here are some quick key takeaways from the survey.
Approximately 52 percent of all respondents indicated that their president is eligible to earn performance-based variable pay as a bonus.
The vast majority of respondents indicated that their president or chancellor is assessed annually for incentive bonuses.
Boards use multiple metrics to determine variable pay. Across independent, public, and proprietary institutions, budget targets, and fundraising goals were the most common measures.