X

Glossary

Process for Determining CEO Compensation:

This process indicates that the organization has a documented policy that it follows year after year. The policy should indicate that an objective and independent review process of the CEO's compensation has been conducted which includes benchmarking against comparable organizations. We check to be sure that the charity has reported on its Form 990 its process for determining its CEO pay.

If the charity does not have a process for determining CEO compensation, then we deduct 4 points from its Accountability and Transparency score. However, in cases where the CEO is truly a volunteer and not compensated, no points will be deducted.