CEO Compensation

Equitas Academy

Finance Committee

6/2/22

Agenda

• CEO Compensation Framework
• CEO Comparable Data
• CEO Salary History
• Discussion for Finance Committee
• Appendix: Comparison to Teacher Pay

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CEO Compensation: Key Elements (Pg 1 of 4)

Source: CEO Evaluation Committee Slide Deck 2/28/19 (Slide 7)

• Board Chair role: negotiate with the CEO using the information provided by the committees detailed above
• Board role: approve CEO compensation decisions recommended by the Board Chair

CEO Compensation: Key Elements (Pg 2 of 4)

Source: CEO Evaluation Committee Slide Deck 2/28/19 (Slide 8)

CEO Compensation: Key Elements (Pg 3 of 4)

Excerpt from Equitas Compensation Guidelines document

Source: Compensation Guidelines, May 2021

The purpose of this slide is to inform alignment/equity between the approach taken for the CEO and other Non-Instructional Staff

CEO Compensation: Key Elements (Pg 4 of 4)

Excerpt from staff performance mgmt 1-pager

Source: Staff performance management 1-pager, May 2021 

The purpose of this slide is to inform alignment/equity between the approach taken for the CEO and other Non-Instructional Staff. Based on prior discussions, for the CEO, the thresholds would be stricter and align with the CEO Eval’s 5 pt scale: for example 0.00-2.99 = 0% raise, 3.00-3.99 = 2% raise, 4.00-4.99 - 3% raise, 5.00 = 4% raise.

Comparable Data Pg 1 of 3: Charters Salaries

Notes:

• Source salary data (2021 Comp Study by EdFuel, KIPP, & CSGF) data is as of Oct 2021 (2021-22)
• Data set is a large group of high-quality charter operators from the KIPP and CSGF portfolio
• 2019 ExEd data - not shown here because much smaller operators, not comparable

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National

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West

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CA

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LA Metro

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Comparable Data Pg 2 of 3: Charters Incentives

Notes:

• Source salary data (2021 Comp Study by EdFuel, KIPP, & CSGF) data is as of Oct 2021 (2021-22)
• Data set is a large group of high-quality charter operators from the KIPP and CSGF portfolio

Comparable Data Pg 3 of 3: Districts

• Data source is CA Dept of Education
• LAUSD Superintendent Salary = $440K

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Malka’s salary history

Current 2021-22 salary is $282,663.60 (3.5% above her 2020-21 annual salary)

Increase % table for base

0% = 282,664

1% = 285,490

2% = 288,317

3% = 291,143

4% = 293,971

Bonus paid was roughly equal to 9%-13% of preceding 12 months annual salary

• 2021: $25,722, (9.4% of 2020-21 salary)
• 2020: no bonus b/c of pay freeze (COVID)
• 2019: $27,360 (10.7% of 2018-19 salary)
• 2018: $28,500 (11.6% of 2017-18 salary)
• 2017: $25,000 (13.3% of 2016-17 salary)

Source: Equitas, May 2022

Discussion for Finance Committee

• 2021-22 bonus for Malka Confirmed
• Total potential figure is 15% ($42,400) of 2021-22 salary ($282,664)
• The board on 12/15/21 increased potential from 10% to 15% in this fiscal year to account for the additional duties outside of the scope of work.
• Bonus will be determined based on approach outlined in Slide 4 (except that 10% is now 15%)
• 2022-23 salary for Malka Recommend to board: beginning 7/1/22, base rate will be raised based on the outcome of the CEO eval process (see Slide 6) - rate applies to both Malka’s role as CEO in July 2022 and advisor thereafter; key change: no bonus potential for the 2022-23 fiscal year

- Decide: (a) base pay + 10% bonus potential; or just (b) base pay

- Confirm that this increase is tied to the framework outlined on Slide 6

• 2022-23 salary for TBD new hire

- Confirm continued use of existing approach: base pay + 10% bonus potential

- Discuss range, how we might make a decision (be flexible w/ structure, continue to ground in comps), negotiation strategy(“leave a little room for negotiation” - example: base is fully baked but leave room for negotiation using the signing bonus), communication strategy for TBD new hire (be transparent, feel free to share this slide deck)

• Process for determining compensation for new Chief hires
• Chiefs are eligible for 10% bonus (board decision in 2021-22)
• Historically, CEO has made compensation choices with board advice on ad hoc basis Recommend: to keep doing it like this, if the CEO wants board advice, the board will provide it

Role: The Finance Committee’s role is to advise the Board Chair on the items below

Discussion and recommendations from the Finance Committee in blue

Appendix: Teachers paid ~6% above LAUSD

Equitas teacher scale, 2021-22

LAUSD teacher scale, 2021-22

The purpose of this slide is to inform alignment/equity between the approach taken for the CEO and Teachers

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It appears that Equitas teachers are paid approximately a 6% premium to LAUSD (the monopoly operator).