Monday, January 11, 2010

Re: One Answer to Pat Bassett's Closing Question in his January Blog Post

Although the thread of executive salaries is of interest and one worth
exploring on its own, it is my view that the real question in Pat Basset's blog
is the issue of whether leadership has been duly exercised by change and
innovation . Peter Gow responded very eloquently to that point.

Michael Nill, Head
Brooklyn Friends School



In a message dated 1/11/2010 9:29:04 A.M. Eastern Standard Time,
DavidWithrow@harfordday.org writes:

Well said, Jason!

A forum for independent school educators <ISED-L@LISTSERV.SYR.EDU> writes:
>A number of non-profits I have worked for have bonus compensation tied to
performance
>and I am sure if you look at for profit education management companies
like Edison
>Learning (which runs some Philly schools) you will see them there too.
In my experience
>the value of these types of incentives are ambiguous. I have seen them
motivate and
>stifle. The execution of these kinds of systems in non-profits is very
tricky and open
>to abuse with overly loose or strict goals. More often then not I would
see them
>eroding the discretion of the Head in relation to the board.
>
>I think that Fred is right to look at compensation and creativity but I
believe the are
>symptoms of a larger forces. Throughout the early 90's to mid-2000's
many established
>schools made some significant changes. At least in the Washington, DC
area it seems
>that the majority of schools undertook major programs of expansion. This
echoed
>year-over-year increases in school age children and an increase in
available students to
>fill slots. Most schools also sought ways to attract students that went
beyond pedagogy
>(echoing the trend from higher ed). Many invested in IT facilities,
others with
>expanded sports and rec facilities all of which had costs that were not
off-set by
>increased numbers of students and often had to be made up by increased
debt, fund
>raising, and tuition.
>
>As financial responsibility increases (especially if it is debt or
fundraising) so does
>the salary of the CEO/President/Head, regardless of market sector. It
also tends to
>make organizations more conservative because the risk of financial
failure is higher.
>This gets worse when revenue is projected to drop (as we see the number
of school age
>children dipping through at least 2012). I believe the DC area has seen
the financial
>failure of one school a year (on average) since 2005. This will make it
far easier for
>a number of smaller, less encumbered schools to jump in in 2018-ish when
the
>demographics are on the up-tick and we can start the cycle again.
>
>_J

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[ For info on ISED-L see https://www.gds.org/podium/default.aspx?t=128874 ]
Submissions to ISED-L are released under a creative commons, attribution, non-commercial, share-alike license.
RSS Feed, http://listserv.syr.edu/scripts/wa.exe?RSS&L=ISED-L