American Productivity & Quality Center

“The Executive Committee is comprised of five (of the 16) board members, and has responsibility for approving Board-level decisions that cannot be made between annual full-board meetings. The Executive Committee is apprised of, and approves, the activities of the Audit, Investment, and Compensation Committees.”

“Form 990 is reviewed by the Board Chair, CEO and CFO. A copy of Form 990 is distributed electronically to the Executive and Audit Committees prior to filing with the IRS.”

“An acknowledgement is sent to all board members, officers and key personnel annually asking them to affirm that they have 1) received the Conflict of Interest Policy, 2) read and understood the policy, 3) agree to comply with the policy, and 4) disclose any potential conflicts. Any reported conflicts are discussed with the Executive Committee. Anyone who fails to return an acknowledgement may be removed from the board or their office.”

“The Compensation Committee of the board of directors reviews all compensation of officers and management using third party verifiable data. APQC's HR director subscribes to various local and national compensation data sources. Using these sources, HR performs an analysis of the external data and provides a compensation benchmark report to the committee for each management-level employee using the three standards of like job, like company and like role." Salary bands are created for each employee using actual compensation and a plus/minus 25 percent factor to account for tenure, experience, other duties and any other factors that could impact individual compensation. Five-year averages of individual compensation data are provided to the committee to be able to recognize trends in compensation. Compensation can never exceed the established cap. In 2018, APQC hired two independent professional services firms to perform a compensation study for APQC. This was done for the purpose of supplementing the internal work performed by the HR Director each year. Going forward, APQC will have an independent firm perform a compensation study once every three years to improve the corporate goverance of setting compensation at APQC. A compensation consultant was retained again for the February 2023 Compensation Committee meeting. These compensation comparables are then reviewed by Compensation Committee members in detail. The Committee provides HR with any additional informational requests or questions, then meets to discuss how the data compares to APQC compensation. The Committee approves all compensation including any merit-based increases or changes for each individual. Meeting minutes are kept for all meetings and are approved by all Committee members prior to preservation. This process is also followed for other officers and key employees.”

“Documents available upon request.”

“Other fees for services: Program service expenses 2,037,464. Management and general expenses 131,110. Total expenses 2,168,574.”