Short-term incentive (STI) plans remain a prevalent practice at nonprofit and government organizations, according to a recent survey by CAP and WorldatWork. According to “2019 Incentive Pay Practices: Nonprofit/Government Organizations,” 68-percent of nonprofit and government organizations have STI plans. However, when nonprofits are broken out separately from government organizations, the prevalence rises to 76 percent.
Other key survey takeaways include:
- STI spending at nonprofits as a percentage of operating budget is two percent at median for 2019, which is slightly less than the 2.3 percent reported in 2017.
- Median 2019 target award levels at nonprofits remained steady across position levels: 40 percent of salary for the CEO, 25 percent for other executives/officers, and 10 percent for managers/supervisors.
- Long-term incentive (LTI) plans are used by a minority of respondents, with 22 percent reporting an LTI plan in 2019 (vs. 24% in 2017).
- The most common type of LTI plan is a long-term, cash-based incentive plan.
The full results of the nonprofit/government survey are available to WorldatWork members.