CEO compensation conversations in associations tend to follow a familiar pattern: both sides feel slightly uncomfortable, the discussion happens quickly, and the final terms reflect compromise more than strategy.
There is an opportunity to approach it differently. For both boards and CEOs, the compensation conversation is one of the most important governance moments in the relationship. Treating it with the same rigor applied to strategic planning or financial oversight produces better outcomes for everyone.
Here is what we have observed from conducting CEO searches across the association and nonprofit sector.
For CEOs
Know where you stand in the current landscape. Many association CEOs rely on survey data or informal conversations with peers, which can be helpful but may not reflect recent shifts. The compensation landscape has changed considerably in recent years. A current, objective assessment of your position in the market gives you a stronger foundation for any compensation conversation.
Ground the conversation in what you have delivered. Boards respond well to compensation discussions anchored in organizational results. Bring specifics: growth numbers, advocacy wins, operational milestones, member engagement results. Making the case for compensation that reflects your contribution is both appropriate and constructive.
Do not wait too long to have the conversation. Many CEOs tell us they have gone years without a meaningful compensation discussion with their board. That distance can create uncertainty on both sides over time. Proactive, candid conversations about compensation are a sign of a healthy governance relationship.
For Boards
Make sure the package matches the mandate. If you have just adopted an ambitious strategic plan, your CEO’s compensation should reflect the expectations embedded in that plan. Alignment between the scope of the role and how the CEO is compensated supports both retention and performance.
Be proactive about compensation reviews. Boards sometimes revisit compensation only when prompted by a transition or a concern about retention. Regular, proactive reviews signal that the board values the CEO and is invested in the long-term health of the relationship.
Bring in objective outside data. Current, well-sourced benchmarking data is essential. Even thoughtful boards benefit from a fresh outside perspective, especially when compensation discussions stay internal or rely on older information. Outside benchmarking brings credibility and fairness to the process and helps the board make well-grounded decisions.
The bigger point
The strongest board-CEO relationships we have seen treat compensation as a governance discipline, not simply an annual formality. When both sides approach it with preparation, transparency, and a shared understanding of the organization’s strategic direction, the outcome is better for the organization, the board, and the CEO.
David S. Martin is CEO and Founder of Sterling Martin, a national executive search firm specializing in associations, nonprofits, and mission-driven organizations. Sterling Martin is celebrating its 20th anniversary in 2026.