States Target Nonprofit Executive Pay

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 24. January 2014 08:11


Should nonprofit executives “volunteer” a part of their compensation (by receiving a discounted salary) because they work for a charitable organization? Alternatively, is a “high” salary important to attract the kind of talent needed to achieve the purpose of the nonprofit? The IRS says that pay must be reasonable and that salary data on comparable jobs in comparable organizations must be used to document that what is paid is appropriate. However, some states are moving to supplement that IRS scrutiny at the federal level with some limits on salaries for nonprofits at the state level.
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A Modest Suggestion on Pay for Nonprofit Executives

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 7. January 2014 15:02


A recent blog by George Weiner suggests the following approach for a nonprofit to reduce those pesky overhead costs that are so often the focus of criticism: one-year overhead plan, salary, and benefits.

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Executive Compensation Analytics: North America and Europe

by Malak Kazan, CECP, CCP, CBP, GRP 22. November 2013 11:00
Organizations will generally have two or three sources of executive and top management compensation benchmarking data to ensure compensation is NOT a reason for turnover at the c-suite and top talent levels. Compiling and analyzing executive compensation data can be a daunting task especially since the regulatory frameworks for c-suite jobs in some countries vary (e.g. voluntary vs mandatory disclosure; or aggregated vs incumbent-level disclosures). For top management positions, the scope dimensions of the jobs like P&L responsibility, geography, and targeted niche business are required criteria which may not be available in most compensation solutions. [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]

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]