How Much Should a Nonprofit Pay Its Chief Financial Officer?

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 30. October 2013 16:10
Of course, the answer is “it depends.” In determining market compensation, ERI Economic Research Institute has found through its years of research that the influencing factors are what you do and where you do it. “Where” refers to the kind and size of organization as well as its geographic location. A quick review of the Form 990 data submitted annually by all US nonprofits shows the significant variation in compensation for nonprofit organizations providing human services, based on their size, as measured by annual revenue. [More]

CEO Pay Ratio and Reasonable Compensation Estimates

by Malak Kazan, CECP, CCP, CBP, GRP 22. October 2013 15:25
The Dodd Frank rule requiring public companies to report CEO pay ratio relative to employee pay was approved by the SEC in a 3 to 2 vote and is currently in a 60-day comment period open until December 2, 2013. Once finalized, as early as 2015, publicly-traded companies will need to disclose the CEO’s annual compensation relative to employee annual median compensation and express this comparison as a ratio. Company exemptions are those covered by the JOBS Act (i.e. emerging growth), foreign private issuers, and small reporting companies. [More]

What Determines Nonprofit Hospital CEO Pay?

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 22. October 2013 13:20
Setting pay is the responsibility of the hospital board, and those board members must collect and use data from comparable organizations and choose the relevant criteria, most commonly size and location. Using ERI’ s compensation data from the Forms 990 contained in the Nonprofit Comparables Assessor, the table below illustrates the wide variation in pay among larger and smaller hospitals in different locations. [More]

Executive Compensation: Performance Relative to Peer Companies

by Malak Kazan, CECP, CCP, CBP, GRP 16. October 2013 15:04
From a business leadership perspective, evaluating performance at an individual or organization level can usually be expressed as exceeds expectation, meets expectations and not meet expectations. These performance standards become more meaningful when they are evaluated relative to a peer group potentially eliminated “rater bias” and optimize the human capital investment in terms of compensation dollars as well as other organization development resources. [More]

Charity Navigator CEO Compensation Survey Finds 2.5% Increase in 2011

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 9. October 2013 16:11
Charity Navigator’s 8th Annual Compensation Survey of nearly 4,000 medium to large-sized charities concluded that the median CEO salary was close to $126,000 and the median increase from 2010 to 2011 was 2.5%. [More]