Q: I am a board member at a $10M non-profit in the North East. Our current Executive Director is coming up for review, and we are struggling with how to ask her to leave. The organization’s finances are in a pitiful state, morale is low, and, apparently, some key community relationships have deteriorated under her watch. How do we handle this touchy situation? Do we just ask her to leave?
A: Dealing with non-performance is challenging. Have you spoken with the ED to get her input on the situation? The failures you see may be on account of a number of factors. Although she is the ED, do not discount the impact of sabotage and/or territorial politics on perceived outcomes.
Do not yield too quickly to the temptation to take matters into your own hands. You want to analyze the situation with care so that you can capture as many contributing factors as possible. That way, you can more effectively remedy the situation.
Therefore, you have some investigating to do. But, go forth keeping your inquiries as discreet and confidential as possible. Maintain professionalism in every aspect of your investigation.
To begin, interview other members of her leadership team – the CFO, CIO, Chief Development Officer – to get their assessments of what has gone wrong. Also, convene the Board specifically to discuss the alleged non-performance and to decide a course of action that comes sanctioned by the full Board.
Once you determine she is the main culprit behind the problems, act with caution. As much as you may want to tell her to walk and walk immediately, you must take care to meet legal and community standards in the way you handle the situation. If the Board sanctions her dismissal, check with the organization’s attorney to see if she can be asked to resign rather than being fired. (Subsequent employers are going to be much kinder to someone who resigned rather than was fired. You want to give her a message that her current performance is lacking. You do not, however, want to sabotage her whole career.) Additionally, speak with the organization’s attorney to see if there is a standard severance package that will be offered.
If your organization does not have an attorney, get recommendations, and hire a reliable employment or labor law specialty firm to guide you through every aspect of her separation from the organization. Among the issues you want to review are the following:
(1) Sequence of events. Does the invitation to resign/request to leave come after the annual review? Who should deliver the message and when?
(2) What kinds of severance options are there, and what is the timing and the longevity of each?
(3) If you are going to pay her for a period of months after the dismissal, for how long and at what rate?
(4) What are the implications for health benefits, Roth IRA’s, 401ks, pensions and annuities?
(5) If health benefits are involved, will the ED be permitted to continue coverage for a period of time? If so, how long and at what contribution rate?
Let this experience serve as a positive guide in your negotiations to find a new ED at the appropriate time. Use the information you gather in your investigation to guide your requirements for the next ED. Given the professional way you handle the “dismissal,” you minimize negative “buzz in the marketplace” and you maximize your chances of hiring a dynamite new Executive Director at the appropriate time.
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Last updated on July 5th, 2017 at 05:20 pm
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