A member of Canada’s parliament has proposed setting a ceiling on pay for senior executives at nonprofit organizations and requiring the groups to disclose the salaries of their highest-paid staff members, reports The Globe and Mail.
The Liberal Party legislator Albina Guarnieri’s bill would limit top pay at charities to about $246,000 ($250,000 Canadian). Any organization that exceeds the cap would risk losing its charity registration. A vote is expected next month.
The measure was prompted by a controversy last year over the more than $2.6-million paid in salary and severance to the head of the SickKids Foundation, in Toronto. Canada does not require disclosure of nonprofit leaders’ salaries, but the figure was revealed because the foundation is also registered in the United States.
0 Responses to Canadian Lawmaker Seeks Cap on Charity Executives’ Pay
ronwormser - March 17, 2010 at 2:17 pm
Similar abuses will lead to similar initiatives in the US -eventually. Ron Wormser
jfloria - March 17, 2010 at 2:22 pm
Canada should just require disclosure of nonprofit leaders’ salaries, but not cap them. If an executive is compensated excessively, the loss in donor trust is far worse than any kind of penalty the government could give them for exceeding a required cap.
joebrown - March 17, 2010 at 2:27 pm
I found the contrasts between this proposal and US practices interesting, and captured my thoughts here: http://bit.ly/cjYkCS
dcspacone - March 18, 2010 at 8:01 am
Yea Canada and the US should follow. Too many of these organizations get way too fat at the top under the guise of being a non profit and getting the tax breaks and benefits of a 501c3. They will be the first to cut head count when times get tough instead of collecting a reasonable salary and spreading the wealth. They obviously need to be regulated because it’s all about greed.