During this global economic crisis, property and casualty insurers must remain focused and disciplined in their underwriting and risk management practices. There should be a strong link between pay and the desired objectives of the company to keep executives focused. Despite a 96% drop in net income, U.S. property and casualty insurers remain well-capitalized according to research by the Property Casualty Insurers Association of America. Link to PCI site here.

Experience tells us that property and casualty insurers typically have been more conservative in underwriting and investing than their banking counterparts and this disciplined approach to risk-taking should bode well for the industry. However, in order to maintain that discipline, insurers must design meaningful and appropriate compensation programs to drive their businesses forward. The experienced professionals at Compensation Resources, Inc. can assist compensation committees and HR directors in setting appropriate performance goals to align the interests of the leadership team with company goals. Please call us at 201-934-0505 if you have any questions regarding executive or employee focus, motivation or retention needs.

The Wall Street Journal wrote an article this week saying that scrutiny of Nonprofit Executive Compensation by the Internal Revenue Service (IRS) will increase this year in the wake of the general public outrage on excessive compensation. Since the Panel on the Nonprofit Sector released its final report to Congress in 2005, the IRS has been working towards increased scrutiny of these organizations. Link to article here:

http://online.wsj.com/article/SB123902531992992777.html?mod=googlenews_wsj

At Compensation Resources, Inc. (CRI), we have highly skilled professionals with vast experience in Nonprofit Executive Compensation. Not only do we know the ins and outs of the new IRS Form 990 Nonprofit tax return, but we can assist with your organization�s understanding and protections under the Intermediate Sanctions and Rebuttable Presumption that exist in IRC �4958.

If you have any questions regarding Executive Compensation at a Nonprofit organization, please do not hesitate to call one of our compensation professionals at 201-934-0505.