June 9, 2005

A Trustee's Manual for Setting Executive Compensation

By Caroline Preston

Dollars and Sense: The Nonprofit Board's Guide to Determining Chief Executive Compensation, by Brian H. Vogel and Charles W. Quatt, says that nonprofit trustees must execute a "careful balancing act" in deciding how to compensate their chief executives. While a good salary and benefits are necessary to attract the best candidates, the authors write, a compensation package that is too generous could conflict with the organization's mission and even