1.13 – Executive Compensation/Evaluation

In compliance with Internal Revenue Service guidelines for approval of senior management compensation, the Board of Directors of Open Door will follow the review and approval guidelines listed below.

Board of Directors Compensation

The officers of an organization are determined by reference to its organizing document, bylaws, and include, at a minimum, those officers required by applicable state law. Open Door operates by a volunteer Board of Directors, therefore, Open Door does not provide any compensation to board members including wages, benefits, loans, expense reimbursement, property, gifts, gratuities, or any other personal gain.

Individuals Subject to this Policy (defined as “Covered Individuals”)

Chief Employed Executives: The individual or individuals who have the ultimate responsibility for implementing the decisions of Open Door’s governing body or for supervising the management, administration, or operations, including Open Door’s top management official and top financial official. If this ultimate responsibility resides with two or more individuals who may exercise such responsibility in concert
or individually, then each individual should be included.

The individual has responsibilities, power or influence over Open Door as a whole that is similar to those of officers, directors, or trustees.

Procedure for Approving Compensation

In reviewing and approving the compensation of any Covered Individuals, the Open Door Board of Directors, or a delegated committee of the Board (referred to as the “Approval Body” below), will utilize the following process:

1. Impartial Decision Makers
   The compensation arrangement must be approved in advance (before any payment is made) by the Approval Body of Open Door composed entirely of individuals who do not have a conflict of interest with respect to the compensation arrangement (example: neither the executive
   whose compensation is being determined nor any of his/her family members
   may be present during the discussion/debate or participate in the vote).
   
2. Comparability Data
   When the Approval Body is considering compensation to Covered Individuals, it must rely on comparability data that demonstrate the fair market value of the compensation in question. When crafting compensation packages, the Approval Body must secure data that documents compensation levels for similarly qualified individuals in like positions at like organizations. This data may include the following:

• Expert compensation studies by independent firms-such as Bradyware, OPRA etc.
• Documented telephone calls about similar positions at like sized and scoped nonprofit organizations.
• Information obtained from the IRS Form 990 filings of similar sized and like organizations.
• Job performance standards and requirements of the positions.
• Open Door budget

Open Door is dedicated to promoting retention and longevity in all positions, therefore, wishes to remain above the 75th percentile of the average of comparability data when determining pay ranges for all positions, unless otherwise contraindicated by budgetary concerns.

3. Concurrent Documentation
   The Approval Body must document how it reached its decisions, including the data on which it relied. To qualify as concurrent documentation, written or electronic records of the Approval Body (such as meeting minutes) must note:

• The terms of the compensation and the date it was approved.
• The members of the Approval Body who were present during the debate on the compensation that was approved and those who voted on it.
• The comparability data obtained and relied upon and how the data were obtained.

4. Chief Executive Director Evaluation
   The Board of Directors of Open Door, or the appointed committee, will be responsible to complete a thorough, written evaluation of the Chief Executive Director annually. A formal performance review will be presented to the Chief Executive Director by the designated Board member(s) decided on by the evaluators. The Chief Executive Director reserves the right to respond to any contents of the evaluation and seek revisions, if determined necessary by Board of Directors.

Last Revised: 1/31/22