A Discussion of Executive Compensation in Not-for-Profits

A free white paper by Compensation Resources, Inc.

Over the last few years, there has been a virtual avalanche of media attention on the excesses of executive compensation. These "revelations" have occurred based on an examination of companies for which data is publicly available, and include large publicly-traded companies, as well as many NFP organizations. The negative reaction to the seemingly continuous examples of egregious executive compensation and heightened media attention has acted as a stimulus for new and pending federal and state government regulations aimed at curbing these abuses. While many of these are aimed at the publicly-traded sector, we have also seen a number of state governments, including NY, NJ, NH, and others issuing regulations that are targeted at the not-for-profit (NFP) sector. NFPs already have their own set of federal and state regulations limiting executive compensation; however, more are being created and implemented in an attempt to stem what is viewed as unreasonable compensation.

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