What constitutes excessive pay for chief executives?
In recent years, excessive executive compensation has become an issue for many nonprofits, because of highly publicized, seemingly excessive nonprofit salaries. For the most part, compensation of nonprofit executives lags far behind the compensation of leaders in business and government. The real challenge for many boards is not how to reign in excessive compensation, but rather how to find the resources to pay appropriate salaries. To evaluate the appropriateness of executive compensation, consider the following: • the size and complexity of the nonprofit; • the mission area, geographic location, and financial condition of the organization; • the qualifications required for the job; and • compensation at comparable organizations. The Panel on the Nonprofit Sector Report on Transparency, Governance and Accountability, addresses Executive Compensation in their final report to Congress. MANP publishes a Wage and Benefits survey yearly to be used as an objective tool to justify compensati
