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]

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]

Study Shows Nonprofit CEO Salaries Rose 2% in 2011

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 19. September 2013 11:41
GuideStar’s recently released study of compensation at 95,000 nonprofit organizations showed small increases for executives in 2011, averaging 2% for CEOs, barely keeping up with the rate of inflation. Before the 2008 recession, increases averaged 4 to 6%, but had been much lower for the past several years. GuideStar analyzed the 2011 compensation data of about 135,000 executives in 14 job categories reported on the IRS Form 990 and prepared tables that show median salaries based on organization size, type, and geographic location. [More]

Nonprofit Executive Pay Caps Implemented in NYS

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 5. August 2013 10:03
On July 1, 2013, New York State Governor Cuomo's Executive Order #38, designed to "prevent public funds from being diverted to excessive compensation and unnecessary administrative costs, and ... ensure that taxpayer dollars are being used to help New Yorkers in need," was implemented. EO #38 now puts limits on reimbursements for administrative costs and executive compensation that come from state-provided funds. [More]

Grassley Finds Details on Executive Comp Hard to Get from NYU

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 17. July 2013 11:45
When a former top executive for New York University (NYU) nominated for Treasury secretary was questioned at his confirmation hearing about his compensation (in particular, his parting bonus) and subsidized mortgages, Senator Chuck Grassley raised concerns that these payments by a nonprofit were inappropriate, considering its exemption from income and property taxes. According to a recent New York Times article, Grassley asked for more details and, several months later, has not received the detailed information he is seeking from NYU. [More]