Report

Survey Report 2019 Incentive Pay Practices: Nonprofit/Government Organizations

Survey Report 2019 Incentive Pay Practices: Nonprofit/Government Organizations

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Susan Schroeder
Partner susan.schroeder@capartners.com 310-426-2340
Bonnie Schindler
Principal bonnie.schindler@capartners.com 847-636-8919

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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.