Executive Compensation Philosophy and Policy

POLICY

It is the policy of Libra Foundation to provide a compensation program for Executive positions, which is based upon total compensation, the components of which are: base salary, with position rates and ranges reflecting prevailing salary levels for comparable positions in similar charitable foundations and retirement and other Executive benefits. In extraordinary circumstances discretionary incentive compensation may be awarded, designed to reward significant individual and organizational accomplishments.


SCOPE

Compensation goals for the Executive staff are essential organizational tools to foster positive managerial performance, to enhance productivity and to achieve strategic and operational organizational objectives. The approved compensation goals are:

  • To attract and retain the most competent and qualified Executive talent by providing competitive total compensation programs.
  • To maintain internal compensation equity based upon a systematic method of evaluating scope of responsibility and contribution to organizational results for each specific management position.
  • To maximize objectivity in the manner in which individual managerial performance is recognized.

ELIGIBILITY

The Board Chair and the Board of Trustees are responsible for: 1) determining the overall structure of the compensation program for the officers of Libra Foundation; 2) evaluating the performance of the President and Chief Executive Officer and for determining his/her compensation, and 3) reviewing and approving the compensation for the Foundation’s senior executive positions as recommended by the President and Chief Executive Officer. The Board of Trustees has adopted the following guidelines for determining compensation for senior executive positions of the Foundation.

DEFINITIONS

Total Compensation

Total compensation will be defined as:

  • Base Salary
  • Discretionary Incentive Compensation
  • Retirement and Other Executive Benefits

Base salary “targets” will be established for senior executive positions utilizing appropriate database surveys of comparable U.S. charitable foundations conducted by a recognized expert in the area of charitable foundations or utilizing national surveys conducted by the Council on Foundations or some similar organization. Additionally, the Board of Trustees will use empirical data from nationally recognized publications (such as the Wall Street Journal) on relevant existing labor conditions.

Executive Total Compensation Philosophy and Policy

New officers’ salaries will be set within the base salary range based on experience and recruitment requirements.

Summary – Base Salary

Annual base salary adjustments may have the following components depending upon the individual’s relationship to the market-determined target:

  • A market structure adjustment to maintain the desired ratio relationship to the position rate.
  • A performance-based merit adjustment.

Discretionary Incentive Compensation

Discretionary incentive compensation for eligible individuals may be awarded under extraordinary circumstances and is designed to reward significant individual and organizational accomplishments.

Actual payments will be awarded solely at the discretion of the Trustees. Executive staff compensation levels are set competitively within market range and it is not expected discretionary incentive compensation will be awarded on a usual and recurrent basis.

Retirement and Other Supplemental Benefits

In determining overall total compensation, retirement and other supplemental benefits will be considered. The Foundation maintains a 401(k) retirement plan for all employees to which the Foundation contributes 10% of earned compensation subject to maximum contribution rules established by the Internal Revenue Service.

Revised February 29, 2008