Although executive pay, in general, has been often closely examined, nonprofit CEO compensation has been especially scrutinized as the function of nonprofit organizations is typically to fulfill a specific mission statement, frequently to the benefit of community-based values or ideals. Because of the ethical and legal optics that are tied to how tax-exempt organizations operate, nonprofit CEO pay is shaped by regulatory oversight, mission alignment, and funding structures. 

What Determines Nonprofit CEO Pay? 

Many may not associate higher executive pay with nonprofit organizations, but fair and reasonable compensation, especially at the executive level, ensures that a nonprofit can operate smoothly while maintaining its mission. Similar to for-profit organizations, nonprofit CEO pay is determined by various elements: 

  • Organization Size and Budget: The scale and scope of a nonprofit is a large determinant of how much an executive is paid at the tax-exempt organizations. Critical metrics, such as the total operating budget, number of employees, program scope, and more, are used to set appropriate executive pay. Because larger organizations usually require larger budgets, CEOs at these organizations can earn higher pay due to the complexity of managing sizeable budgets and operations. 
  • Funding: The complexity and composition of a nonprofit’s funding programs can ultimately affect executive pay at these organizations. For instance, organizations that are supported by diversified funding sources may offer more competitive executive compensation packages. Diversified funding can be sourced from grants, government funding, and major donors. 
  • Board of Directors: One of the most important influences on nonprofit executive pay, the board of directors is typically responsible for ensuring that compensation is fair and transparent while aligning with an organization’s mission and resources. Directors involved in pay decisions should be independent and free of conflicts of interest. They often rely on market data, organizational budget and funding, and any applicable legal and regulatory standards to ensure that executive compensation is defensible and compliant.  

To learn more, see ERI’s “Guide To Setting Nonprofit Executive Compensation.” 

Top 10 Highest-Paid Nonprofit CEOs in California  

As tax-exempt organizations take center stage, nonprofit executive compensation continues to stay relevant. Based on 2025 data, the chart below highlights the top 10 highest-paid nonprofit CEOs in the state of California from highest to lowest Total Cash (Base + Incentives). Based on 2025 compensation data from filings and reports, the chart below highlights the top 10 highest-paid nonprofit CEOs in California, ranked from highest to lowest by total cash compensation, which includes base pay and incentive compensation.

Company Name Title Total Cash
Kaiser Foundation Health Plan Inc Gregory Adams Chairman & CEO $12,567,386
Sutter Health Warner Thomas President & CEO $8,705,274
Delta Dental of California Castro Michael J Chief Executive Officer $6,909,365
Credit Unions in the State of California Gary Rodrigues President & CEO $6,705,661
Motion Picture Association Inc Charles Rivkin Chairman & CEO $4,284,073
Educational Employees Credit Union Elizabeth Dooley CEO $3,304,415
Adventist Health System-West Heinrich Kerry Director/CEO $3,302,428
Scan Health Plan Jain Md Sachin H President & CEO $3,268,166
San Diego County Credit Union Teresa Campbell CEO & President $3,100,634
Emanate Health Rajesh Sharma President $2,411,826

Nonprofit CEO pay should reflect a balance between an organization’s mission, financial stewardship, and the necessity to attract and retain capable and innovative leadership. Using ERI’s Nonprofit Comparables Assessor, HR and compensation professionals can accurately set competitive and fair pay for nonprofit executives.  

For a more detailed breakdown of executive compensation in the nonprofit sector, turn to ERI’s Nonprofit Comparables Assessor today and take advantage of these features:   

  • Calculate average competitive nonprofit compensation levels, along with user-defined ranges and percentiles. 
  • Review compensation data collected from nonprofit organizations’ IRS Forms 990, 990-EZ, and 990-PF in easy-to-interpret interactive graphs and tables.  
  • Generate benchmark reports based on salary data from comparable peers in tax-exempt and/or for-profit organizations.   
  • Group peer organizations, including for-profit data, with the detailed compensation comparables needed for a “rebuttable presumption of reasonableness” that protects an organization from the imposition of intermediate sanctions taxes, penalties, and interest by the IRS (IRC 4958).  

ERI’s Assessor Platform helps HR and compensation analysts confidently grasp how executive salaries compare in their specific industry and make the most accurate data-driven decisions. Turn to ERI to conduct a more strategic nonprofit executive compensation analysis that will ensure that executive pay remains fair, defensible, and competitive.  

Click here for a free demo today!