A ban on compensation for board members at publicly funded Massachusetts nonprofit groups moved a step closer to enactment as the state Senate approved the plan Friday, the Boston Herald writes.
The regulation, proposed by Sen. Mark Montigny and backed by Attorney General Martha Coakley, is part of an overall budget bill that now goes to the state House.
“It simply says if you’re a charity, you’re not going to pay people for the privilege and prestige of sitting on a board and coming to a few meetings per year,” said Mr. Montigny, who has tried for six years to rein in excessively high pay for charity executives.
Calls to curb pay for charity board members gained momentum last year after compensated directors at Blue Cross Blue Shield of Massachusetts approved an $11-million severance package for the nonprofit insurer’s outgoing CEO. Blue Cross subsequently suspended pay for board members.