U.S. Labor Market Tightens

by ERI 10. February 2016 09:31
Two recent government data releases have suggested tightening labor market conditions. On February 5th, the government released its Current Employment Statistics monthly employment report for January. Average Hourly Earnings for all private employees was up 2.5% on a year-over-year basis. As the graph below shows, there is a clear upward trend in the last year that is in marked contrast to the preceding five years. [More]

When Not to Be an Outlier

by Linda M. Lampkin, Research Director 28. January 2016 12:41
While there are some situations that call for standing out from the crowd, setting nonprofit executive compensation is not one of them – that is, unless there is a thoughtful process that is not only supported by data, but also well-documented, and justifies a higher-than-expected salary. [More]

Why Compensation Analytics?

by Malak Kazan, CECP, CCP, CBP, GRP 20. January 2016 12:54
Organizations are leveraging internal and external datasets to generate analytics upon which they can make smarter business decisions. The effective design of robust analytics can be based on time series regression analysis. This generally is the result of iterative analytics that lead to identifying meaningful independent variables. These independent variables help to predict with some reasonable certainty a probable outcome. [More]

Variation in Nonprofit CEO Salaries Matters

by Linda M. Lampkin, Research Director 6. January 2016 12:44
Headlines may cover the instances of high pay for nonprofit executives, but a closer look at all the data reported on CEO pay indicates that compensation averages are actually pretty low. Using ERI’s Nonprofit Comparables Assessor, the table below shows the average annual pay for CEOs of all US Human Services organizations (plus averages for the 25th and 75th percentiles). These calculations are based on pay reported by charities on Forms 990, the annual report required by the IRS. [More]

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Performance Bonuses for Charity Executives?

by Linda M. Lampkin, Research Director 22. December 2015 10:02
For many years now, charities have been encouraged to act more like for-profit companies, with a focus on measuring their outcomes and the impact of their programs. The logical next step is to reward those that succeed with performance bonuses. At the same time, the IRS and other charity regulators have some pretty clear guidelines on what type of compensation is permitted for charity executives. [More]