the center for family support, inc

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Policy and Procedure: Corporate Compliance Topic: Executive Personnel Performance and Compensation Review SCOPE OF POLICY This policy applies to all Center for Family Support (CFS) Executive level personnel including the Executive Director (CEO), the Associate Executive Director, the Assistant Executive Director, the Director of Human Resources and the Director of Quality Assurance & Training.

STATEMENT OF PURPOSE The Board of Directors of The Center for Family Support (CFS) is responsible to establish a process for review of performance and review of the compensation of the CFS Executive Director and all executive level personnel. The Executive Committee of the Board will establish criteria and standards for successful and effective job performance, and ensure that annual evaluations of the Executive Director are conducted. The Executive Committee will advise the Board and make recommendations with regard to compensation issues and advise executive staff with respect to senior management succession planning.

STATEMENT OF POLICY I.

Duties and Responsibilities:

The duties and responsibilities of the CFS Executive Committee of the Board of Directors related to CFS Executive personnel include, but are not limited to the following: 1. Review and make recommendations with respect to executive compensation and executive retirement plans. 2. Annually, oversee the performance evaluation of the Executive Director. 3. Based on the evaluation, set the compensation and benefits of the Executive Director. 4. Review and approve employment, severance, change-in-control, termination, and retirement arrangements for the Executive Director. 5. Consult with the Executive Director and other executive personnel and advise the Executive Director with respect to senior management succession planning.

6.

Review recommendations made by Executive Director related to compensation for other executive personnel and senior management including the Associate Executive Director, the Assistant Executive Director, the Director of Human Resources and the Director of Quality Assurance & Training.

7. Administer and interpret executive compensation plans to the extent required by the terms of such plans. The Executive Committee will periodically engage an independent Executive Personnel Performance & Compensation Review

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firm to evaluate the compensation of these individuals in a manner consistent with current industry and IRS standards.

II.

CEO Performance and Compensation Review:

1. Selection of the Chief Executive Officer: The Board is responsible for identifying potential candidates for, and selecting the CFS Executive Director. In doing such, the Board considers, among other things, a candidate’s experience, and understanding of The Center for Family Support’s business environment, leadership qualities, knowledge, skills, expertise, integrity, and reputation in the business community. 2. Evaluation of Chief Executive Officer: The Executive Committee is responsible for overseeing the evaluation process for the Executive Director. There are two types of measures: a) Financial Performance Measures, which track accountability for past performance, and b) Leadership Effectiveness Measures, which identify the key objectives that will assure the future success of CFS. Leadership Effectiveness Measures include, but are not limited to, the following: 

Leadership

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Building Team Spirit

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Managing Vision and Mission

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Organizational Flexibility

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Approachability and Accessibility

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Effective Decision Making

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Accountability

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Developing People

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Integrity and Trust

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Results

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Maintaining Organizational Values

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Community Involvement

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In order for the Executive Committee to conduct this evaluation, the Committee reviews performance as measured against progress made in relation to the annual agency goals set by the Executive Director and the Board, agency financial standing and leadership measures evidenced throughout the year. III. Succession Planning: The Board shall plan for the succession to the position of the Chief Executive Officer. To assist the Board, the Executive Director shall conduct periodic succession planning sessions with the Board at which time an assessment of senior managers will be conducted including their potential to succeed the Executive Director and other senior management positions.

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