Issue: A public school military academy retained Calfee Financial to develop a compensation package for the founder and head of school. The board wanted Calfee Financial to provide out of the box thinking and establish a rationale for compensation that would correlate to mainstream public school pay, while providing an incentive for performance. The board, clear in its admiration for the founder, also wanted to provide a top tier retirement package within the confines of IRS regulations.
Our process: We operated within open meeting sunshine provisions for presentation and information purposes. Project requirements included developing a compensation plan that would recognize the achievement of creating and developing a successful 600-student school while matching the public school retirement packages left behind when the head resigned to found the military academy.
While data points for similar schools were rare, we were able to observe charter school developments throughout the country. We met several times with the board, the head of school, and additional management members. The project required coordination with the state-managed retirement system, non-profit tax requirements, competitive compensation reflecting ‘step and lane’ pay schedules when compared to public school pay grids, and responding to a board wanting to do everything possible to provide for the head now and in retirement.
Result: Recommendations were developed and made. The board placed final resolution on hold pending development of similar packages for retiring management team members.