1. PURPOSE
The purpose of this policy is to set forth the policy for evaluating the evaluation President/CEO and the respective roles and responsibilities of the subcommittee, Executive Committee and Board of Directors.
2. SCOPE
This policy applies to the President/CEO Evaluation Subcommittee, the Executive Committee and the Board of Directors. This policy replaces the President/CEO Compensation Subcommittee Policy.
3. REFERENCES
a. APTA Bylaws Article VII, Section A (“Organization”).
b. APTA Bylaws Article XI, Section A (“Appointed Officers”).
4. DEFINITIONS
President/CEO Evaluation Subcommittee (“the subcommittee”) is defined as a subcommittee of the Executive Committee of the Board of Directors charged with the evaluation of the President/CEO of APTA through an objective, timely, and performance based system. The subcommittee will consist of the Chair, Vice Chair, Secretary/Treasurer, Immediate Past Chair, Chair of the Transit Board Members committee, and Chair of the Business Members Board of Governors committee. At the discretion of the Chair, two additional Executive Committee members may be appointed to the subcommittee.
5. RESPONSIBILITIES
a. APTA Chair
- Oversees the work of the President/CEO Evaluation Subcommittee.
- Refers recommendations from subcommittee to the Executive Committee for approval.
- Reports to the Board of Directors after the evaluation process.
b. Executive Committee
- Reviews, assesses, and refines recommendations from the subcommittee.
- Approves mid-year and final evaluation of the President/CEO as well as any compensation adjustments.
c. Board of Directors
- Receives report from the Chair regarding final President/CEO performance review and compensation adjustments.
d. Subcommittee
- Responsible for developing and recommending to the Executive Committee annual performance criteria for the President/CEO.
- Responsible for developing and recommending to the Executive Committee the percentage, if any, of incentive compensation for the President/CEO based on achievement of quantitative and qualitative performance criteria.
- Conducts the semi-annual and annual performance evaluation of the President/CEO.
6. PROCEDURES
During the Legislative Conference each year the subcommittee will meet to establish draft performance criteria for the President/CEO for the upcoming performance period that matches APTA’s fiscal year of July to June. The subcommittee will provide the draft performance criteria to the President/CEO. The Executive Committee will consider the subcommittee’s draft performance criteria and any President/CEO’s suggested edits during the Spring Executive Committee meeting. The performance evaluation criteria for the fiscal year beginning July 1 will be approved by the Executive Committee and delivered in writing to the President/CEO after Executive Committee action at their spring meeting. In the event the President/CEO is hired less than six months before the end of the APTA fiscal year, then the first evaluation m may be less than 12 months to ensure the President/CEO is evaluated during the same timeframe as other APTA staff. If this occurs, the President/CEO will not receive incentive compensation for any evaluation period six months or less.
The subcommittee will conduct a mid-year review of the President/CEO’s performance after six months and will report on this review to the Executive Committee. To accomplish this, the President/CEO will submit a written evaluation of their mid-year performance to the subcommittee at least 14 calendar days before the expiration of their six-month anniversary. The President/CEO will receive feedback from the Chair regarding their midyear performance after the Executive Committee considers it. The mid-year review will include 360 feedback from internal and external stakeholders.
For the final performance assessment, the President/CEO will submit to the subcommittee their written self-evaluation of annual performance at least 15 calendar days before the expiration of their twelve-month anniversary. In addition, the subcommittee will solicit 360 feedback from APTA Vice Presidents, APTA leadership, members, and external stakeholders (e.g. Congress, chambers of commerce, etc.) regarding the President/CEO’s performance over the year in a format proscribed by the subcommittee. The subcommittee will review the self-evaluation, and 360 feedback to evaluate the President/CEO’s overall performance. Upon review and consideration by the Executive Committee, the President/CEO will receive feedback from the Chair and Vice Chair in a face-to-face meeting regarding their annual performance including any adjustments to evaluation. After the evaluation process, the Chair shall provide a report to the Board of Directors.
A. Evaluation Framework
APTA’s President/CEO will provide the highest quality of services possible to all its members,both public and private sectors, and customers and stakeholders. The person must be informedon the issues facing the industry, and leading a team of world-class subject matter experts acrossthe many facets of our industry. The President/CEO’s formal performance evaluation process and structure should promote benefits that include: aligning the strategic direction set by APTA’s Board of Directors with the President/CEO’s capabilities; promoting better relationships with theBoard to ensure an appropriate and productive collaboration; setting an example of accountability for the organization; demonstrating that performance management is a core value and culture of the organization; and encouraging the President/CEO’s personal development. Evaluating the President/CEO’s performance generally includes targets or expectations related to leadership and management; relationship with the Board; strategic planning and execution; financial performance; internal management and relationships; external relationships; and communications. The evaluation and assessment of the President/CEO is based on the scope and responsibilities outlined in the job description. (See Attachment A.)
B. Performance Criteria
The subcommittee is directed to develop, to the maximum extent possible, quantitative performance metrics for the President/CEO. Sample quantitative performance criteria are attached to this policy as Attachment B. While the subcommittee is strongly encouraged to develop quantitative metrics based on the performance criteria below, the subcommittee may also include additional/supplemental performance criteria based on the needs of APTA at the time. The baseline performance criteria are:
Board Interaction Criteria:
- Interprets and implements Board policies and incorporates same into administrative, operating rules, and/or procedures.
- Establishes, fosters and continually nurtures a close working relationship with the APTA Chair, Vice Chair, Secretary/Treasurer, Board of Directors and the Executive Committee.
- Plans, organizes, and delivers materials for presentations to the Board in a clear, concise, and comprehensive manner.
- Consistently exercises sound time management to meet Board directives and schedule of deliverables.•Ensures appropriate Board policies are in place to guide APTA’s work in all areas.
- Helps Board monitor and evaluate organization’s relevancy, effectiveness, and results.
- Builds consensus positions and manages expectations through regular communication with the Board and Executive Committee.
Member Relationships Criteria:
- Fosters equity in relationships with all APTA members by not favoring one constituent group over another constituent group.
- Improves upon membership recruitment and retention (based on membership survey and other membership data).
- Ensures program quality and organizational stability through development and implementation of procedures to regularly evaluate APTA’s service offerings.
- Manages a member-centric organization with an emphasis on exceptional customer service and customer satisfaction
- Works with members to get best thinking and involvement in APTA initiatives including participation on the Board and/or Executive Committee.
External Relationships Criteria:
- Works with legislators, regulatory agencies, volunteers and representatives of the nonprofit sector to promote legislative and regulatory policies that advance the mission of APTA’s members.
- Maintains and/or enhances effective partnerships with organizations important to achieving APTA’s goals.
- Oversees and advances the planning and execution of APTA’s legislative advocacy programs.
- Facilitates the integration of APTA into the fabric of the transportation industry by ensuring the use of effective marketing and communication activities.
Financial Management Criteria:
- Oversees the development and implementation of APTA’s annual budget and business plan, and provides updates to the Chair, Vice Chair, Secretary/Treasurer, Executive Committee, and Board of Directors on the overall financial position of the association.
- Develops areas for cost reductions and increased efficiencies. Directs management to implement plans that result in an organization operating efficiently and effectively.
- Ensures solid financial planning and budgeting systems are in place.
- Promotes programs and services that are produced in a cost-effective manner, employing economy while maintaining an acceptable level of quality.
Organizational Management Criteria:
- Continually examines the organizational structure to ensure there is communication and collaboration between departments to ensure the highest quality of member services are delivered.
- Responsible for ensuring compliance with Federal and District of Columbia regulations regarding labor, employment and the health and safety of employees.
- Leads, engages, and empowers managers to lead their teams in a collaborative, effective and efficient manner.
- Ensures a work environment that recruits, retains, and supports quality staff.
Strategic Planning and Execution Criteria:
- Leads staff in developing, implementing and monitoring progress on the Association’s Strategic Plan
- Establishes operational objectives that support APTA’s strategic plan.
- Demonstrates initiative and creativity in identifying and addressing strategic issues facing APTA.
Staff and Interpersonal Relationships Criteria:
- Provides staff with opportunities for professional development and training to foster their career goals and address succession planning.
- Provides executive-level guidance and support to a well-trained professional staff. Provides leadership, inspiration and empowerment to staff to reach their highest level of performance to advance the Association’s vision, mission, goals and objectives.
- Embraces diversity and inclusion in attracting staff and through the association’s diversity plan and policies.
- Communicates, both in writing and verbally, in a manner that commands attention and achieves results.
- Participates in a 360° review and makes managerial changes, as appropriate.
- Projects a positive image of APTA in both written and oral communications.
C. Rating Scale
The subcommittee will rank the President/CEO’s performance goals on a four-point scale, with open-ended questions regarding significant strengths/accomplishments and weaknesses/opportunities for improvement. The subcommittee may consider augmenting its evaluation to include overall leadership and management objectives in assessing performance and based on feedback from the senior management team and external stakeholders. The rating scale will be:
4:Exceeds Expectations—The individual is making an exceptional, significant contribution to APTA. This person is constantly accepting responsibilities beyond those of the job held and continuously performs over and above expectations in completing work assignments. There are few areas regarding performance of job responsibilities in which this person could improve.
3:Meets Expectations—The individual is a steady, consistent, dependable performer and carries out duties in a fully responsible and effective manner. Meet and occasionally exceeds expectations regarding job responsibilities and completion of work assignments. Even though present performance is acceptable, there may be areas regarding performance of job responsibilities in which the person should improve.
2:Needs Improvement—The individual falls below standards or expectations. It is expected that with appropriate improvement plan, performance will reach a fully satisfactory level within a specified period.
1:Unacceptable—Performance consistently fails to meet the minimum requirements of the job.
D. Incentive Compensation
At the sole discretion of the Executive Committee, the President/CEO may be entitled to receive a target annual bonus payment of up to 25 percent of their base salary for exceptional performance. Incentive compensation is discretionary and based on performance above and beyond what is expected of the President/CEO. The subcommittee may determine incentive compensation by weighting performance goals and metrics to reflect the priorities of APTA for that year. The incentive compensation, if any, shall not be prorated for any year during the President/CEO’s employment with APTA.
Certification of Secretary/Treasurer
I hereby certify that the above “President/CEO Evaluation” policy was adopted by the Board of Directors of APTA at a properly called meeting with an appropriate quorum present.
This 11 day of June, 2017
Printed name: Kim Green
Signature: ______Signature on file______________
Secretary/Treasurer
Acknowledgment of APTA Chair
This 11 day of June,2017
Printed Name: Doran J. Barnes
Signature: _______Signature on file_____________
APTA Chair