Benefits and benefits. The agreement should specify the remuneration and benefits to be provided to the CEO. In addition to salary, reported benefits may include health, life and other insurance; holidays and other holidays; Premiums and incentives deferred pension benefits, professional affiliations and vocational training, as well as others, which have been agreed upon by the parties. The terms, timing and types of salary increases and other compensation changes should be specified in the agreement. This may include the cost of living, benefit increases and/or performance increases. (For more details, see the forum`s professional practice statement entitled “Assessing the Performance of the Chairman of the Association`s Executive Board.”) The agreement should clearly identify the relationship between the association and the CEO, including the obligations each has to the other. Ideally, the CEO should know what is expected with respect to responsibilities and the association should have a clear definition of its responsibilities to the CEO. Identify the parties and their commitment. The opening of the agreement should be clear by the parties concerned and on the question of whether the employer is the parent company or a subsidiary.
It should also reflect mutual consent to commitment. The association forum believes that each association should enter into a written employment contract with its ceo in order to define the employment agreement and clearly articulate the commitments of the Ceo and the association. A well-developed employment contract lays the foundation for a successful relationship between an association and its manager. When negotiating a mutually beneficial agreement, both sides should follow best practices on four key elements of the treaty. In a written working agreement between an association and the CEO, the mutual expectations of the association`s PDG relationship must be clearly explained. It should clarify the scope and limits of executive prerogatives and the actual working relationship and document the conditions and relationships of governing bodies where volunteer members change regularly. Many agreements also offer a discretionary bonus option, often linked to achieving set goals, often with a maximum goal or percentage of the base salary. The agreement should define the goal setting process, specifying that this must be done at the beginning of the fiscal year or another period of service, and specifying who will be involved in the process. In general, it is not desirable for the Executive Committee to be associated with the annual evaluation of the CEO`s performance and the resulting basic salary and bonus findings; Most of the time, the board of directors performs this function. CEO release, for no reason. Although far from necessary, many agreements have provisions that allow the executive to resign prematurely, without giving a reason or reason, by giving the employer special written notice.
As a general rule, a CEO will want such a provision. The notice period should take into account the required recruitment cycle and the time required, and the agreement should stipulate that no severance pay will be paid to the executive in these circumstances. It is a proven method for the employment contract – and often the organization`s statutes – to provide that the CEO has the exclusive authority to hire, dismiss, monitor, promote and pay all other employees, subject to the budgetary parameters set by the board of directors. The OPERATIONAL and administrative authority of the CEO will thus be duly separated from the strategic responsibility of the Board of Directors in matters of supervision.
