Showing posts with label nonprofit pay. Show all posts
Showing posts with label nonprofit pay. Show all posts

Friday, April 11, 2008

Charity Pay: How Much Is Too Much?

On our site, donors are chatting up a storm about CEO Compensation. Donors are expressing their outrage at what they perceive to be excessive CEO pay at charities like the American Cancer Society, USO, American Heart Association, Easter Seals, National Headquarters, Trinity Broadcasting Network, and Wildlife Conservation Society. With the average American earning under $40,000, it is easy to see why nonprofit CEO salaries as low as $133,510 are drawing criticism.

While it is true that some charity executives receive outrageously high salaries, our research shows that the typical charity CEO earns about $145,000 a year. We’re talking about multi-million dollar operations that require leaders that possess both savvy business skills as well as the expertise to meet the institution’s charitable goals. So really, isn’t this level of compensation reasonable?

In fact, $145,000 looks like a bargain when we contrast it with what their corporate counterparts are earning. According to USA Today and Salary.com, corporate CEOs are paid about $1 million annually. Add to that their various stock options and bonuses and corporate leaders are taking home $11 million a year.