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January 05, 2009 Arts Salaries in Minn. Prompt DebateIn response to the recent disclosure that Joe Dowling, longtime director of the Guthrie Theater, in Minneapolis, was paid $682,229 in salary and benefits in 2007, the city’s arts organizations have been debating whether such a large compensation package is justifiable, reports the Star Tribune. “Minnesota is the 21st-largest state, and the Twin Cities are the 16th-largest metro area, but in many categories our nonprofits, including arts organizations, rank in the top three,” said Jon Pratt, executive director of the Minnesota Council of Nonprofits. “If our top-compensated people rank in the top tier, it’s because our organizations rank in the top tier.” Others approach it from a different perspective. “I don’t know if it’s reasonable or not, but the fact that [Dowling’s pay] is the highest in the country — that certainly would be a red flag,” said Kate Barr, executive director of the Nonprofit Assistance Fund, in Minneapolis. “I would want to ask the board, which represents the public interest, what basis of comparison are they using for setting this compensation?” Board members of the Guthrie Theater quoted in the article disagreed on whether the pay was appropriate, and Mr. Dowling declined to comment for the article. ![]() CommentsCommenting is closed for this article.
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Here is a thought… how about we work on reigning in compensation for oil company, banking and automobile manufacturing executives before we start worrying about the salary of non-profit executives. Whatever the board pays the CEO, it is their perogative to do so. .
— Allen Jan 5, 02:39 PM #
Non-profit cultural institution CEO (and top management) compensation ought to be proportionate to an organization’s annual operating budget, the amount of revenue (raised and/or earned) the person is directly responsible for, and the overall institutional compensation range. Mr. Dowling’s compensation “package” suggests that the Guthrie’s AOB is about $60 million; he is directly responsible for raising well over $3 million/year; and the lowest paid full time employee receives an annual salary and benefits package of about $30,000.
— Peter Jan 5, 03:02 PM #