How
Much is Enough?
Jim Heskett
Source:
Working Knowledge May 3, 2004
Recent estimates suggest that U.S. business
organizations have attained the greatest disparity between the highest
and lowest paid members of any in the world—and not by just a little.
A growing number of observers are beginning to argue that this can't be
a good thing for employees and their morale, customers, investors, or
even American competitiveness. Now a case is being made for the possibility
that this may not even satisfy the deep-seated needs of those anointed
with mega-rewards, especially if each successive increase only leads to
an even higher expectation on the part of those obsessed with "scorekeeping,"
regardless of their performance.
Chief
Executive Compensation: A Guide for Nonprofit Boards
Source:
BoardSource
Now more than ever, nonprofits must compete
for talented executive leadership. And salaries of nonprofit executives
have been under increasing public scrutiny. Nonprofit boards must be able
to craft a competitive salary and benefits package that not only reflects
the values of the organization, but helps to attract and retain the right
chief executive for the job. Chief Executive Compensation discusses
the factors that affect compensation including the organization's budget
and staff size, the candidate's experience and abilities, and the geographic
location of the organization.
Executive
Compensation in the Nonprofit Sector: New Findings and Policy Implications
Eric
C. Twombly, Marie Gantz
Source:
Urban Institute - December 2001
The
growth of salaries and benefits for nonprofit officers has been significantly
more controversial than increasing executive compensation in the corporate
sector. Even government regulators have taken notice, as evidenced by
the temporary regulations recently passed by the Internal Revenue Service
(IRS). Related to public concern that large executive salaries are
incompatible with charitable activity, these regulations allow the IRS
to assess excise taxes against executives of nonprofits that provide disproportionately
high—or excessive—compensation to their employees. However,
in an economy that offers an increasing array of opportunities for executives,
some scholars and nonprofit leaders suggest that charities must offer
to top executives wages and benefits that are comparable with those in
the for-profit sector.
The Price of Doing Good: Executive Compensation in Nonprofit Organizations
Peter
Frumkin, Elizabeth K. Keating
Source:
Hauser Center for Nonprofit
Organizations, Harvard University - October 2001
Our
analysis indicates that nonprofit executive compensation is not significantly
related to CEO performance, as measured either by improved fund-raising
results or better administrative efficiency. This weak pay-for-performance
link may be due in part to nonprofits' concern about violating the non-distribution
constraint in the sector, which prohibits the distribution of excess earnings.
While nonprofits may not be breaching the letter of the law, some organizations
appear to challenge its spirit: We present evidence that CEO compensation
is significantly higher in organizations where free cash flows is present,
as measured by commercial revenues, liquid assets and investment portfolios.
Executive
Compensation: Nonprofit Organizations Face Unique Problems
Source:
Kern, DeWenter, Viere, Ltd.
When
it comes to executive compensation, nonprofit organizations face some
unique considerations not encountered by for-profit companies. Nonprofits
must grapple with “private inurement” rules, and their compensation
packages must be structured without the benefit of stock options or other
equity arrangements. It is still possible, however, to reward employees
of nonprofit organizations for their part in the organization’s
growth. To do so, we will start by examining some basic concepts of compensation
in nonprofit organizations, including private inurement. Then, we will
discuss some specific compensation ideas for executives.
Nonprofit
Compensation, Benefits, and Employment Law
David
G. Samuels, Howard Pianko
Source:
John Wiley & Sons - 1998
Issues
surrounding executive compensation, employee benefits, and employment
law are becoming increasingly important to nonprofits. And with the recent
passage of intermediate sanctions, the government has signaled that they
will be watching compensation and benefits of nonprofits very closely.
This timely book fills the growing need by nonprofit executives for an
accessible guide to legislation, case law, and IRS regulations. |
