Terms of Employment

Contracts: Advantages/Disadvantages

Contracts help minimize misunderstandings that can arise from unwritten agreements. They also help associations attract and retain the most qualified and successful executives. However, they can be misused and can inhibit the possibility of changing executives. Key points to cover in an executive employment contract include:

  1. Compensation agreement
  2. Title of Position
  3. Term of agreement including starting date
  4. General duties of the executive
  5. Specific duties, such as representing the association before governmental bodies and the general public; hiring and firing of other employees; and administrative and financial management
  6. Stuipulation that executive will devote full time and efforts to the association
  7. Reasonable limitation of taking competitive positions
  8. Special benefits, such as relocation expenses, vacations, sick pay, insurance, memberships, and expense account
  9. Provisions for termination, including notification term
  10. Results for executive in case of merger
  11. Indemnification provision
  12. Renewal of contract provision

Evaluation of the CSO

The Board of Directors should evaluate the CSO’s performance each year. The review should be based on the performance of duties established in his or her job description. The review should be performed by a small group of key officers. Unfortunately, volunteers sometimes ignore or avoid the performance review placing the CSO in a very uncomfortable position. Without such a review, the CSO has little opportunity for pay increases or for knowing how to improve his or her performance.