Join The Chapter

Criteria for Membership in YPO

YPO invites qualified prospects to apply for membership. YPOI minimum membership criteria is as follows:

A new application must be approved by YPO International before the applicant reaches his or her 45th birthday.

Title
YPO membership is open to individuals who are responsible for the full operation of a qualifying corporation or division. Individuals must hold one of the following titles:

• President
• Chairman of the board
• Chief executive officer
• Managing director
• Managing partner
• Publisher
• Equivalent of any of the above

Note: Both a chairman of the board/CEO and a president of the same qualified corporation may not simultaneously be members of YPO.

Corporation Complexity

Corporation Definition -
“Corporation,” as the term is used here, includes incorporated or limited business entities, partnerships and other forms of business organizations deemed, at the discretion of YPO’s Executive Committee, to be substantially equivalent to businesses incorporated under the laws of the appropriate legal jurisdiction. This definition also includes academic institutions, not-for-profit organizations and government entities. All corporations must be operating businesses not primarily generating passive income. An applicant must be qualified, in addition to age and title, by rules of corporate complexity established by the YPO International Board.

Qualifying Corporation -
The candidate must meet one requirement from each category below – i.e., he or she must meet at least one “A” requirement and one “B” requirement. In exceptional cases presented by currency devaluation or other circumstances, the corporation complexity criteria may be met in other ways.


“A” Requirements -

Requirement #1
The candidate must have at least 50 regular, full-time employees or the equivalent under his or her control. Persons engaged on a commission basis rather than straight salary are considered employees if they are permanently connected with the corporation and receive their principal livelihood there from. Seasonal employees are not included in YPO’s employee definition.

Requirement #2
The total compensation of all employees, excluding the compensation of the candidate, must exceed US$1,000,000.

“B” Requirements -

Requirement #1
The corporation must meet dollar volume requirements based on the type of corporation he or she runs, as follows:
• Sales/Services/Manufacturing corporations must have at least US$8,000,000 in gross annual sales or turnover.
• Financial institutions must have average annual assets of at least US$160,000,000.
• Agency-type businesses must have annual fees or commissions billed of at least US$6,000,000.

Requirement #2
The corporation must have an enterprise value of US$10,000,000 as defined by one of the following:
• Net worth of assets before depreciation of US $10,000,000.
• Independent third-party investment/valuation of US $10,000,000.
• The sum of the company’s public equity value plus its debt less cash must equal US$10,000,000.

Please note these are minimum requirements. Individual YPO chapters may require additional criteria. In addition, membership criteria used in the application must be certified by an outside auditing firm or other approved independent third party. Only externally certified public accountants (CPA), chartered accountants (CA) or lawyers/attorneys are approved as independent third parties. Please note that individuals on the prospective YPO member company’s staff, regardless of title, are not authorized to certify the membership criteria.
 




If you have questions about membership, please e-mail membership@YPOCalCoast.org.