How High Should a Non-Profit CEO's Salary Be?

RELATED QUOTES

SymbolPriceChange
C46.37+0.48
VIA39.86+0.76
AAPL113.09+0.21
SBUX54.19+0.15

As the weather in New York creeps ever warmer, the protestors of Occupy Wall Street have re-emerged, as they continue to highlight economic inequalities through the 1% versus 99% framework.

 

That the compensation packages of CEOs of public companies in America has exploded in the last few decades is nothing new. Viacom (VIA) CEO Phillip Dauman’s 2010 compensation was worth a princely $84 million while Starbucks (SBUX) honcho Howard Schultz took home a not-too-shabby $21.7 million in the same year. Apple (AAPL) head Tim Cook’s 2011 take is estimated to be about $378 million, thanks largely to a grant of restricted stock units. But what have thus far escaped public scrutiny is the salaries of leaders at non-profit firms.

 

It turns out that CEOs at non-profits can also sit comfortably amongst the nation’s top 1% of earners, even if their salaries don’t quite reach the astronomical level of Dauman’s. One such CEO, highlighted in this week’s Village Voice cover story, is Dr. Alan Morse, who leads the New York-based Jewish Guild for the Blind.

 

According to the Voice, Morse’s total compensation for 2008 was $843,502 and for 2009, when the Guild was $5 million in the red, Morse raked in some $1.5 million. At least when Citigroup (C) was bleeding, CEO Vikram Pandit volunteered to take a $1 salary until the firm became profitable again. Meanwhile, a music therapist earning less than $5,000 a year at the Guild was laid off.

 

There’s no doubt that CEOs working for non-profit firms deserve competitive salaries. Talented executives could always head to for-profit companies otherwise.

 

As Patty Stonesifer, chair of the Smithsonian Institution Board of Regents, explained to SlateThere are hundreds of nonprofit CEO jobs open every year, and these organizations want to attract and retain a great leader. The cost of unexpected turnover at the top can be very high -- not only in lost productivity but in lost fundraising and, most important, in lost impact.”

 

However, the Guild's is basically a government contractor that provides services for the blind. Should CEOs of such firms be so highly paid?

 

As the Voice explains, “The point of contractors, we're always hearing (even though it's often shown to be untrue), is that they'll lower costs by introducing competition. So how are they successfully lowering costs for taxpayers when their CEOs are earning more than "government CEOs" like Mayor Bloomberg ($225,000, though Bloomberg only accepts $1 of that), Governor Cuomo ($170,000), and the president of the United States?”

 

To be fair to Morse, CEOs in another category of non-profit firms have even more outrageous salaries. The Huffington Post reports that many leaders of non-profit interest or lobbying groups are earning big-time, seven-figure paychecks. For example, Tom Donohue, the CEO of the US Chamber of Commerce, took home $4.7 million in 2010. American Petroleum Institute CEO Jack Gerard, did even better, earning $6.4 million in the same year.



More From Minyanville

--

Get stories like this on the Yahoo app and discover more every day.
Download it now.
Loading...
  • German lawmakers to quiz ECB's Draghi over monetary policy Reuters - 11 minutes ago

    European Central Bank President Mario Draghi is set to face tough questions from German lawmakers on Wednesday about the bank's ultra-loose monetary policy, just as the ECB is considering even more stimulus to revive inflation. Relations have … More »

  • Dollar slightly higher after Clinton bests Trump in debate AFP - 18 minutes ago

    The US dollar earned a boost Tuesday after Hillary Clinton, who is favored by Wall Street, got the best of rival Donald Trump in the first US presidential debate. Most analysts scored the Democrat, widely ... … More »

  • Onetime rising hedge fund star John Thaler considers comeback Reuters - 18 minutes ago

    John Thaler, the tech, media and telecom stock specialist who shut down his hedge fund firm JAT Capital Management LP in 2015, is considering a return to managing other people's money, including launching a new hedge fund, two people familiar with … More »

  • Business Highlights Associated Press - 33 minutes ago

    ___ Unhappy Target customers send strong message on pill bottles Target's pharmacy customers are finding a change in pill bottle design hard to swallow. After CVS began operating Target's drugstores earlier ... … More »

  • ECB'S Lane says up to supervisors to mitigate risks of low rates
    ECB'S Lane says up to supervisors to mitigate risks of low rates Reuters - 37 minutes ago

    Ultra-low European Central Bank interest rates could lead to excessive risk-taking but it is up to supervisors to mitigate these risks as ECB policy is clearly doing the job intended, Governing Council member Philip Lane said on Tuesday. Lane, the … More »

  • Women petition UN chief to pursue Korea peace treaty
    Women petition UN chief to pursue Korea peace treaty AFP News - 41 minutes ago

    A hundred prominent women from 38 countries have directed a petition to UN Secretary General Ban Ki-moon urging him to fulfill his promise to achieve a permanent peace to end the Korean War. In a letter made public on Tuesday, a diverse group of … More »

  • Justice Dept. top national security official to leave post Associated Press - 44 minutes ago

    The Justice Department's top national security official is leaving his position next month, the department announced Tuesday. John Carlin, who has led the department's national security division since ... … More »

  • SpaceX chief envisions 1,000 passenger ships flying to Mars Associated Press - 56 minutes ago

    SpaceX founder Elon Musk envisions 1,000 passenger ships flying en masse to Mars within a century, "Battlestar Galactica" style. During a speech Tuesday in Mexico, Musk outlined his plan to establish ... … More »

  • Oil down 3 percent as Saudi, Iran dash hopes for an Algiers deal
    Oil down 3 percent as Saudi, Iran dash hopes for an Algiers deal Reuters - 1 hour 4 minutes ago

    Oil fell about 3 percent on Tuesday after Saudi Arabia and Iran dashed market hopes that the two major OPEC producers would find a compromise this week at meeting in Algiers to help ease a global glut of crude. Saudi Energy Minister Khalid al-Falih … More »

  • Iraq mediating between Saudis and Iran to support oil prices Reuters - 1 hour 5 minutes ago

    Iraq is carrying out a mediation between Saudi Arabia and Iran to bring about an agreement that would lift crude prices, at a meeting of crude-producing nations in Algiers, Iraqi Oil Minister Jabar Ali al-Luaibi said on Tuesday. Iran on Tuesday … More »

  • The Ford Focus RS was my favorite new track car — but now I like it on the road
    The Ford Focus RS was my favorite new track car — but now I like it on the road Business Insider - 1 hour 14 minutes ago

    Matthew DeBord/BI Behold, the hottest hatch? Ah, the … Continued The post The Ford Focus RS was my favorite new track car — but now I like it on the road appeared first on Business Insider. … More »

  • WHY IT MATTERS: Debate showed how divisive trade has become
    WHY IT MATTERS: Debate showed how divisive trade has become Associated Press - 1 hour 15 minutes ago

    THE ISSUE: Free trade has become a ripe target in the U.S. presidential campaign. At Monday's debate with Hillary Clinton, Donald Trump declared the need to renegotiate trade deals because U.S. trading ... … More »

  • Dutch court ruled in KLM favour in pension dispute - Air France-KLM Reuters - 1 hour 24 minutes ago

    Franco-Dutch airline Air France-KLM (AIRF.PA) said on Tuesday an Amsterdam court had ruled in favour of its Dutch arm KLM in a pension dispute with a pilots' union. The Dutch Airline Pilots Association, which represents 98 percent of KLM's pilots, … More »

  • How the Dow Jones industrial average fared on Tuesday Associated Press - 1 hour 27 minutes ago

    U.S. stocks closed higher after a survey showed consumer confidence is at a nine-year high, a sign Americans will keep spending in the months to come. Technology and consumer stocks made the largest gains. ... … More »

  • U.S. Treasury’s Lew sees no Fed surprises for emerging markets Reuters - 1 hour 33 minutes ago

    U.S. Treasury Secretary Jack Lew said major emerging market countries should be better able to anticipate a U.S. interest rate hike because of the Federal Reserve’s clear communications, a recapitalised International Monetary Fund and efforts to … More »

  • The Porsche 911 has convinced me that it’s the greatest car ever made
    The Porsche 911 has convinced me that it’s the greatest car ever made Business Insider - 1 hour 39 minutes ago

    Matthew DeBord/BI Want. If you want to, you … Continued The post The Porsche 911 has convinced me that it’s the greatest car ever made appeared first on Business Insider. … More »

  • Global stocks gain after U.S. presidential debate; oil drops
    Global stocks gain after U.S. presidential debate; oil drops Reuters - 1 hour 42 minutes ago

    By Richard Leong NEW YORK (Reuters) - Stock prices across major markets rose on Tuesday, led by U.S. technology and consumer sectors following the presidential debate between Hillary Clinton and Donald ... … More »

  • Canada to Make Petronas LNG Announcement Tuesday, Chiefs Say (1) Bloomberg - 1 hour 47 minutes ago

    Environment Minister Catherine McKenna, Natural Resources Minister Jim Carr and Fisheries Minister Dominic LeBlanc departed Ottawa for British Columbia after a cabinet meeting Tuesday morning, two indigenous leaders who oppose the development said. … More »

  • Stocks gain after U.S. presidential debate; oil drops
    Stocks gain after U.S. presidential debate; oil drops Reuters - 1 hour 50 minutes ago

    By Richard Leong NEW YORK (Reuters) - Stock prices across major markets rose on Tuesday, led by U.S. technology and consumer sectors following the presidential debate between Hillary Clinton and Donald ... … More »

  • US stocks lifted by consumer data, Clinton debate boost AFP - 1 hour 52 minutes ago

    US stocks jumped Tuesday following surprisingly good consumer confidence data and a strong performance by Democrat Hillary Clinton in the first US presidential debate. Consumer confidence spiked to 104.1 ... … More »

  • The top 10 books on Apple's iBooks-US Associated Press - 2 hours 0 minutes ago

    iBook charts for week ending September 25, 2016 (Rank, Book Title by Author Name, ISBN, Publisher ): iBooks US Bestseller List - Paid Books 1. The Girl on the Train by Paula Hawkins - 9780698185395 - (Penguin ... … More »

  • Landec tops Street 1Q forecasts Associated Press - 2 hours 9 minutes ago

    On a per-share basis, the Menlo Park, California-based company said it had profit of 12 cents. The results surpassed Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment ... … More »

  • World Bank unanimously reappoints President Jim Yong Kim
    World Bank unanimously reappoints President Jim Yong Kim AFP News - 2 hours 12 minutes ago

    The board of the World Bank has unanimously agreed to name Jim Yong Kim to a second term as president, the global lender announced Tuesday. Kim had been the only candidate in a process criticized by World Bank staff and campaigners as lacking in … More »

  • Markets Right Now: US stocks end higher Associated Press - 2 hours 15 minutes ago

    The latest on developments in global financial markets (all times local): 4:00 p.m. U.S. stocks are closing higher, with many of the biggest gains coming in technology and consumer stocks. Solid quarterly ... … More »

  • Facebook to appeal German order on WhatsApp data
    Facebook to appeal German order on WhatsApp data Reuters - 2 hours 22 minutes ago

    Facebook (FB.O) said it would appeal against an order by a German privacy regulator on Tuesday to stop collecting and storing data of German users of its messaging app WhatsApp and to delete all data that has already been forwarded to it. The … More »

 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.141+0.003+2.17%
    N21.SI
    3.99+0.03+0.76%
    Z74.SI
    0.155+0.003+1.97%
    AFC.SI
    0.740.000.00%
    BS6.SI
    0.275+0.010+3.77%
    5ME.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.133+0.020+17.70%
    5PF.SI
    0.19+0.03+15.85%
    AWI.SI
    1.48+0.16+12.12%
    S91.SI
    0.198+0.020+11.24%
    M14.SI
    0.60+0.05+9.09%
    AZA.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.255-0.110-30.14%
    AZT.SI
    0.56-0.18-24.32%
    5VJ.SI
    0.395-0.070-15.05%
    K1Q.SI
    0.162-0.028-14.74%
    BGO.SI
    0.122-0.020-14.08%
    569.SI

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.3594-0.0001-0.01%
    USDSGD=X
    1.5248-0.0001-0.01%
    EURSGD=X
    1.77020.000.00%
    GBPSGD=X
    73.8240-0.032-0.04%
    SGDJPY=X
    5.7034+0.0011+0.02%
    SGDHKD=X
    3.03900.000.00%
    SGDMYR=X
    9,528.4180-0.03520.00%
    SGDIDR=X
    4.9046-0.0009-0.02%
    SGDCNY=X
    1.04220.000.00%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,330.50+0.10+0.01%
    GCZ16.CMX
    19.17+0.01+0.05%
    SIZ16.CMX
    92.98-1.47-1.55%
    ^XAU
    2.170.00+0.07%
    HGZ16.CMX
    43.85+0.41+0.94%
    CLV16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.11-0.02
    ^FVX
    1.56-0.03
    ^TNX
    2.28-0.05
    ^TYX