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The team from Charity Navigator, the nation's largest independent charity evaluator and leading donor advocate, shares their thoughts on emerging nonprofit-sector issues and offers tips to better inform your intelligent giving decisions.

Monday, August 21, 2017

Charity Navigator Metric Mondays #21: CEO Compensation & Policy

Charity Navigator Metric Mondays #21: CEO Compensation & Policy
Happy Monday and more specifically, happy Metric Monday! Today we’ll be expanding upon our metrics about CEO compensation.

When rating a charity we look to see that both the charity’s CEO is listed with salary on their Form 990, and that the organization has a formal process for determining the CEOs level of compensation. While it is not uncommon to see CEO’s who are volunteers, the majority of the CEOs are listed with compensation.

Our analysts do not evaluate the dollar amount of salary that the CEO receives, only whether they are listed with compensation and whether the organization has a CEO Compensation Policy. While the level of salary a CEO is paid can factor into many donors decision making, it is good to keep in mind that like any other industry, it is important to fairly compensate leaders, and the right level of compensation is important to ensuring that the nonprofit sector can attract the best talent.

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