Add ED Incentive Compensation policy

documents/policies/internal/Executive Director Incentive Compensation.md

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+# WCA Executive Director Incentive Compensation Policy
+### Version 1.0 {.version}
+## Purpose
+
+The purpose of this policy is to establish a fair, transparent, and IRS-compliant incentive compensation structure for the Executive Director of the World Cube Association (WCA). The incentive is designed to reward performance that advances the WCA’s mission and objectives, while maintaining alignment with nonprofit governance standards.
+
+## Policy
+
+1. The Executive Director, who acts as the chief executive officer of the WCA, is eligible to receive an annual performance-based bonus of up to fifteen percent (15%) of base salary.
+    1. The bonus is contingent upon meeting pre-established performance metrics aligned with organizational priorities. These metrics must be approved by the WCA Board at the start of the fiscal year.
+    2. The performance metrics shall be developed through a collaborative process between the WCA Board and the Executive Director. While the Board will seek mutual agreement with the Executive Director on these goals, the WCA Board retains the final authority to set and approve the metrics to ensure they meet the WCA’s strategic needs and legal obligations.
+2. The determination, review, and approval of compensation for the Executive Director must comply with the requirements set forth in the WCA Bylaws and Motions, including those derived from the Nonprofit Integrity Act and other applicable law.
+    1. Independent Review: Bonus criteria, compensation comparisons, and final awards must be approved by independent WCA Board members who have fully disclosed any financial or personal interests and have no conflict of interest regarding the matter.
+    2. Reasonableness Standard: Total compensation must remain reasonable compared to similarly situated nonprofits; appropriate comparability data must be documented annually.
+    3. Pre-Established Criteria: All performance metrics must be set in advance of the performance period and may not be altered retroactively.
+    4. Documentation: The minutes of the WCA Board must reflect the approval of the incentive plan, performance assessments, and final bonus determinations.
+3. Process and Timing
+    1. At the end of the fiscal year, the WCA Board conducts a formal performance review based on the pre-established criteria.
+    2. The WCA Board calculates the bonus using an approved scoring rubric.
+    3. The bonus is paid in the next regular payroll cycle following the WCA Board's approval.
+    4. The WCA Board may reduce or withhold the bonus if organizational financial conditions warrant.
+4. Review of Policy
+    1. This policy will be reviewed annually to ensure continued compliance with legal requirements and organizational needs.