Renewing Nonprofit CEO Contracts
According to a number of studies I have conducted over the years, nonprofit CEO contracts have longer durations than other industries. The majority began their current position over seven years ago and many things have changed since that first day: for one, new recruits are seeking and getting employment contracts; furthermore, for those in their positions for a long time, according another study I recently conducted, less that 30% have an employment contract.
And there are many good reasons for both the CEO and the board to have an employment contract – succession planning is the most important reason. Furthermore, as the CEO ages and his/her chances of getting another president position lessen, protecting the future is paramount.
For those whose current contracts are expiring (even if that expiration is 18 months away) and for those without a contract, this is the time to begin to engage the board in discussions and ultimately in agreeing upon something, in writing.