September 18, 2011
Boards Watch Anxiously as Nonprofit Pay Draws States’ Scrutiny
Setting the salary of the chief executive has always been an important role for charity boards, but increasing scrutiny of executive compensation by state regulators means boards now need to be more vigilant than ever in documenting their decisions, experts say.
In the past year, at least three states have started inquiries into excessive compensation or introduced legislation to cap payments to charity executives.
The highest profile case is in New York, where Gov. Andrew M.