Competing for Catholic School Leaders: Why Creative Compensation Structures Matter

One of my favorite movies is the cult-classic, coming-of-age film, Scent of a Woman.  One of the film’s most iconic moments centers on the headmaster’s brand-new Jaguar—a gleaming perk of his prestigious position. To the students, the car is both a symbol of authority and a reminder of the privileges that come with leadership in an elite school.

That Jaguar wasn’t just a status symbol; it was part of the headmaster’s compensation. And while I’m not suggesting that most Catholic school boards put luxury cars on the table, the principle still applies: creative, attractive benefits matter in drawing and keeping top leaders. In today’s highly competitive Catholic K–12 search landscape, the proverbial “Jaguar” might look like a performance bonus tied to enrollment growth, or housing in a vacant parish rectory that makes a cross-country relocation feasible.

The search for strong Catholic school leaders has never been more competitive. With Catholic K–12 schools facing increased enrollment pressures, shifting demographics, and the need for leaders who can balance mission with modern operational expertise, the pool of qualified candidates is smaller than the demand. Many Catholic school boards and dioceses find themselves vying for the same small set of proven leaders or losing them to public and independent schools that can offer more robust compensation packages.  

Just here in my homebase of Atlanta, I have two talented school-leader friends who are practicing Catholic men.  For several years now, each one has led two different highly regarded and well-resourced independent schools in the area.  Their compensation is no secret thanks to the IRS requirement for non-profit, non-religious organizations to disclose such information.  

These schools have benefited immensely from the strength of their leadership, and each Board is remunerating these school leaders handsomely and creatively.  Effective leadership is the difference maker in the health of any organization.  An effective board understands its role as prudent stewards of the school’s mission and resources. Chief among a school’s resources is the school’s leader, the chief mission officer. Boards and dioceses should not be penny-wise, pound-foolish when it comes to stewarding well the school’s effective, mission-evangelizing leader. 

This reality requires Catholic schools and dioceses to think differently about how they attract and retain top talent. While salaries are one piece of the equation, creative and competitive compensation structures can make the difference between a candidate passing on a role and saying yes to it.  While I regularly wish that my two friends would take the helm at a Catholic school, I do not fault them for their choice.  Right now, the leadership compensation delta between the vast majority of Catholic schools and independent schools is much too large.  When offered $150,000 in base salary (period) compared to $450,000 in base salary plus numerous perks, including housing, annual performance bonus, vehicle, tuition remission, country club membership, deferred salary contribution options, subsidized family vacation each summer at a Board member’s beach home, etc., what would you choose?

Thinking Beyond Base Salary

A thoughtful compensation strategy can help Catholic schools overcome the financial constraints that often come with nonprofit budgets. It signals to candidates that the system is committed to supporting their leadership, while also aligning compensation with measurable success.

Some approaches Catholic schools are beginning to adopt include:

• Performance Bonuses Tied to Mission and Growth:
  
  • Enrollment growth benchmarks (e.g., bonuses tied to achieving specific net enrollment increases year over year).
  • Fundraising or advancement goals (e.g., a performance incentive for hitting new donor targets, raising annual fund dollars, increasing the rate of alumni giving, or launching an endowment campaign).
  • Academic excellence and faith formation metrics (e.g., bonuses tied to maintaining high retention rates of both students and staff, or successful implementation of Catholic identity initiatives).
• Retention Bonuses:
  
  • Multi-year bonuses that reward leaders for staying and building long-term stability in their schools. For example, a lump-sum bonus at the end of year three or five.
• Professional Development Stipends:
  
  • Annual funds for advanced study, leadership coaching, spiritual retreats, or participation in Catholic leadership institutes. This not only grows the leader’s capacity but signals an investment in their long-term future.

Leveraging Church Properties as Part of Compensation

One of the most overlooked opportunities in Catholic school compensation packages is the creative use of church-owned property. Many parishes and dioceses have vacant rectories or parish houses that can be offered as part of a relocation package.

For leaders moving across the country—or even across the state—housing can be one of the most daunting financial barriers. Offering a rectory or parish-owned property for reduced rent (or as part of the compensation package) can:

• Offset the need for a higher base salary.
• Make the transition to a new community smoother for leaders and their families.
• Preserve Catholic identity by situating leaders within the parish/school community.
• Some dioceses have also explored housing stipends tied to relocation, similar to what many private sector roles provide. Even if a rectory isn’t available, this approach communicates care and practicality.

Building a Competitive Edge