In general, head compensation is up worldwide for most independent and international school heads. Why? Factors affecting compensation are boards’ acknowledgement of the stress of the job and their desire to retain a valued head or at least avoid unnecessary turnover. Or perhaps heads are becoming better self-advocates, and boards are listening to their needs more.

One certainty is that performance-related pay, not just a guaranteed annual bonus, is becoming much more common, and heads previously opposed to the concept are growing more comfortable with it. That is especially the case since larger payouts are occurring in the form of retention bonuses and in 457(f) nonqualified deferred compensation plans, especially in the US. Contributions to 457(f) plans are now often tied to specific goals such as fundraising, for example.

Head of school compensation has no specific formula as it relates in part to what others on the staff are being paid. However, IF there is a pattern it looks like this: Take the highest paid teacher and double that salary and you have the highest paid administrator OTHER than the head; take that administrator’s base salary and double it and add values for a bonus, housing, business class flights, deferred comp (in the US), tuition remission for children, full medical, club membership, financial planning assistance, settling in allowance for overseas placement and then you should be getting close to what the head is getting paid. If the highest paid administrator is very close to what the head is paid, then very likely the head is not being paid well enough, especially given the risks, uncertainty, and stress of the job.