Calfee Financial
Advisors^®, Inc.

Calfee Financial Advisors provides holistic and global financial planning, guidance and other services to individuals and institutions. Peter Calfee is a registered representative with and offers securities and advisory services through LPL Financial (LPL)Member FINRA/SIPC. Calfee Financial Advisors, Inc., is separate from LPL Financial (LPL) and is not a broker dealer.

Compensation for the Head and Staff of Independent, Charter and Montessori Schools

Compensation decisions are market driven for the head and the board. Even so, there are many ways to craft agreements to satisfy the financial and significant quantitative factors and requirements of a total compensation package.

Conversely, the nation is now focused on excessive compensation in the not-for-profit sector, which requires validation. A process is required to preclude unfair, inadequate and indefensible compensation.

The head and board often begin on opposite shores, neither fully understanding nor appreciating each other’s positions. Fair compensation is the bridge to be built from each shore to join enduringly as a testament to collaboration and fairness.

Three Pillars of Compensation

A fair compensation package is structured around three distinct financial pillars:

• The First Pillar is salary. Salary is determined by supply and demand as well as demographics, geography and the needs of the individual and school or institution.

• The Second Pillar consists of bonuses and other guaranteed or discretionary entitlements such as cars, insurance, tuition, sabbaticals et al.

• The Third Pillar is deferred compensation, of which there are two categories:

  • Qualified: Government tax code approved 403(b), 457(b) and other plans.

  • Nonqualified: Custom designed and tax-deferred compensation strategies. Typically, these are structured to reward the head of the school or institution for a job well done or encourage him or her to remain with the institution.

A fair compensation and benefit package impacts head, faculty and staff pay levels.

Person-Specific™ Planning and Financial Expertise for Successful People®    @Copyright 2005-2009 Calfee Financial Advisors

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related to securities and/or personal investment advice for compensation can be made without full compliance with your
state's registration requirements. Securities offered through LPL Financial (LPL) Member FINRA/SIPC.
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