Nonprofits Should Be Wary of Consultants’ Pay Data

In the 1990s, the Internal Revenue Service inadvertently started what has become a bull market for compensation consultants when it advised charities to examine pay at similar organizations to help set salaries for their own top executives.

Today, large charities routinely hire these advisers to produce compensation reports before they hand out raises to their leaders.

But some compensation consultants are creating reports that may reflect too closely what their client wants