Great talent and skills are always hot commodities and even more so during the “Great Resignation”. This is a time when individuals who feel underappreciated are reevaluating priorities and 
deciding their future. Despite this, it’s disappointing to see nonprofit board of directors taking actions which alienate their CEO. Losing a high performing CEO is disruptive; it’s even more disruptive when a CEO decides to leave because of the board. Below are some of the reasons I’ve seen good CEOs leave because of board actions – all very avoidable.
- Handcuff the CEO
One of the best ways to stifle a high performer is to set unnecessary limitations. The extreme version is micro-managing, but often it is a bit more subtle than this. A CEO with a vision and the skills to pull it off is a tremendous asset to an organization. However, if the board has smacked down that vision by setting limitations on what the organization or CEO can do they are providing incentive for the CEO to leave. A high performer with a vision will move on to lead an organization where they can fulfil their vision.
- Poor Follow Through
One of the most frustrating things a CEO can experience is having great promises by their board left unfulfilled. It’s encouraging when board members offer to assist with things like community outreach or development efforts. But it’s disheartening when the follow through doesn’t match the commitments. CEOs often rely on board members for their connections in the community. If this is all talk and no action, it impacts the CEO’s ability to be successful.
- Changes in Board Leadership Tenor
As CEO of a nonprofit, I saw both ends of the spectrum. The search committee made it clear they understood the difference between governance and management and the board stayed in its lane. This was underscored when a new board chair stated in our first meeting that, “we’re giving you the ball and bat – it’s your ballgame”, then provided all the appropriate support. But a later board chair didn’t have an appreciation for staying out of management which created conflict and an unhealthy atmosphere. These changes in tenor of leadership can be very alienating to leaders who work hard towards making their organization successful.
- Stifle Professional Growth
High performing CEOs will be sought after in their industry. While one potential avenue for professional growth would be to take on a bigger professional challenge, there are other options. CEOs (or any nonprofit leader) should be encouraged by the board to get involved in volunteer leadership of industry associations, take advantage of professional development training, and grow within the job. These options should not only be permitted by the board but should be encouraged and facilitated by the board. Leadership programs, specialized training and coaching, etc. are often more sophisticated in the for-profit sector and board members who have access and knowledge would do their CEOs a great service by facilitating growth opportunities.
- Don’t Compensate Fairly
Compensation is saved for last as it’s rarely the main reason a CEO leaves but can be an underlying issue. I’ve been privy to board conversations where search committees celebrated getting their CEO hire for what they felt was a great salary. Read that “great salary” in the eyes of the search committee as below market. Many nonprofit leaders are internally motivated based on their personal mission. However, there is a constant competition for talent and if one nonprofit is not compensating fairly, they are setting themselves up with a short term “win” which will likely lead to a longer term “loss” as there are competitors out there looking to get their talent (by compensating fairly). I haven’t seen many CEOs who are shopping for the most income, but if one of the other previous situations discussed arises, it’s a justification for looking outside.
Note that none of these reasons to potentially lose your CEO involve huge shifts in organization mission, inappropriate conduct, or any number of catastrophic situations that would require leadership changes. Most are subtle and some develop slowly over time. But when a CEO who is focused on results hits speed bumps in the various forms, there may be a decision to move on to another organization where they can accomplish what they feel the need to. And all are avoidable if the board has awareness.
