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A final determination that the board needs
to consider is the issue of cost-of-living adjustments (COLA) to the superintendent’s
salary. There are two basic options: (1) either add a COLA to the base salary and run the
bonus program on top of the base salary; or (2) let the bonus program stand alone without
a COLA. There are, of course advantages and disadvantages with both approaches. The first
option’s major drawback is cost. Generally, COLAs do not drive behavior or motivate
performance. Unfortunately, they can create an expectation of entitlement irrespective of
market position or job scope. Most private sector programs incorporate COLA within the
performance incentive program. |
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