President Obama has decided to set restrictions on compensation for the top executives at certain for-profit institutions who receive financial assistance from the government. The cap has been set at $500,000. With this new policy, we decided to take a look at CEO compensation for non-profits that accept government funding.
Compensation for the CEOs of non-profits has always been a topic of controversy. Some believe compensation must be competitive with the for-profit sector to retain talent; while others believe that extremely high salaries are downright offensive.
Of the charities on our site, there are 93 charities that accept government funding and also pay their CEO $500,000 or more. These organizations include: Boys & Girls Clubs of America, American Red Cross (recipient of a $100 million government bailout), Easter Seals, March of Dimes, and the American Cancer Society. Of these 93 charities, 33 accept more than $100 million in government funding and pay their CEO $500,000 or more. These organizations include: Stanford University, Harvard University, The New York Public Library, Dana-Farber Cancer Institute and Massachusetts Institute of Technology.
Wednesday, February 11, 2009
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3 comments:
Thank you for sharing this. I would suggest that we put some of these salaries in context (just as you did with the American Red Cross). Some of these CEO's are managing organizations that are multi-million dollar "businesses." As such, their salary compensation is reflective of the size of the organization's revenue and project stream.
To lump university presidents in with Boys and Girls Clubs is not a fair comparison. As you know, there is more to the story than what the numbers indicate.
Gena Rotstein
www.dexterityconsulting.ca
According to the American Cancer Society's own IRS 990 returns available at the ACS website it looks like the National CEO gets over $1,000,000 a year where Consolidated Division Directors get about $500,000 a year.
One must remember that organizations cross funds in Coalition goals which further distracts what Federal Funding is really being used for.
Here's an interesting article on this topic from the Chronicle of Philanthropy:
"Executive Compensation at Charities Attracts New Scrutiny" http://philanthropy.com/news/updates/7162/executive-compensation-at-charities-attracts-new-scrutiny
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