A Study of Executive Pay in Private Non-profit Sector PDF Download

Author: Michael Byungnam Lee
Publisher:
ISBN:
Category : Executives
Languages : en
Pages : 260

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Author: Johnson, Craig Edward Johnson
Publisher:
ISBN: 9781506324609
Category : Compensation management
Languages : en
Pages :

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Book Description
The case focuses on the extravagant salaries that executives in nonprofit organizations earn. This is illustrated with examples ranging from the former chief executive of the Smithsonian Institution to the director of the Los Angeles County Museum of Art. The Internal Revenue Service has responded to an extent to restrict this type of behavior in nonprofits. This case study asks students to consider whether the response to this business problem has been sufficient and to assess how charities themselves should tackle the issue of excessive salaries for executives.

Author: Carol L. Barbeito
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 234

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Book Description
Presents data and summaries of compensation packages in the private, government and non-profit sectors. In doing so, this book examines the different elements of compensation and benefit packages, including salary, insurance, pension plans, tuition reimbursement and holiday.

Author: Brian H. Vogel
Publisher: Boardsource
ISBN:
Category : Business & Economics
Languages : en
Pages : 172

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Author: Brian D. Galle
Publisher:
ISBN:
Category :
Languages : en
Pages : 44

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We evaluate the effect of highly salient disclosure of private college and university president compensation on subsequent donations using a quasi-experimental research design. Using a differences-in-discontinuities approach to compare institutions that are highlighted in the Chronicle of Higher Education's annual "top 10" list of most highly-compensated presidents against similar others, we find that appearing on a top 10 list is associated with reduced average donations of approximately 4.5 million dollars in the first full fiscal year following disclosure, despite greater fundraising efforts at "top 10" schools. We also find some evidence that top 10 appearances slow the growth of compensation, while increasing fundraising and enrollment, in subsequent years. We interpret these results as consistent with the hypothesis that donors care about compensation and react negatively to high levels of pay, on average; but (absent highly-salient disclosures) are not fully informed about pay levels. Thus, while donors represent a potential source of monitoring and discipline with respect to executive pay in the nonprofit sector, significant agency problems remain. We discuss the implications of these findings for the regulation of nonprofits and for our broader understanding of the pay-setting process at for-profit as well as nonprofit organizations.

Author: Peter Frumkin
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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This article examines whether nonprofit executive pay patterns are consistent with the espoused social mission of these organizations. We find that nonprofit CEOs are paid a significant fixed component, and many CEOs also receive additional pay associated with managing larger sized organizations. Our analysis indicates that nonprofit executive compensation is not significantly related to CEO performance, as measured either by improved fund-raising results or better administrative efficiency. This weak pay-for-performance link may be due in part to nonprofits' concern about violating the non-distribution constraint in the sector, which prohibits the distribution of excess earnings. While nonprofits may not be breaching the letter of the law, some organizations appear to challenge its spirit: We present evidence that CEO compensation is significantly higher in organizations where free cash flows is present, as measured by commercial revenues, liquid assets and investment portfolios.

Author: Kathryn A. Agard
Publisher: SAGE
ISBN: 1412968860
Category : Business & Economics
Languages : en
Pages : 1073

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Book Description
Leadership in Non-Profit Organizations tackles issues and leadership topics for those seeking to understand more about this dynamic sector of society. A major focus of this two-volume reference work is on the specific roles and skills required of the non-profit leader in voluntary organizations. Key features include: contributions from a wide range of authors who reflect the variety, vibrancy and creativity of the sector itself an overview of the history of non-profit organizations in the United States description of a robust and diverse assortment of organizations and opportunities for leadership an exploration of the nature of leadership and its complexity as exemplified in the non-profit sector availability both in print and online - this title will form part of the 2010 Encyclopedia Collection on SAGE Reference Online. The Handbook includes topics such as: personalities of non-profit leaders vision and starting a nonprofit organization nonprofit law, statutes, taxation and regulations strategic management financial management collaboration public relations for promoting a non-profit organization human resource policies and procedures.

Author: Felice Beth Klein
Publisher:
ISBN:
Category : Executives
Languages : en
Pages : 150

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Book Description
Significant attention has been paid to executive pay. In over a thousand studies published on the topic of executive pay (Gomez-Mejia, Berrone, and Franco-Santos, 2010), most of the research revolves around answering one question: are executives rewarded for the performance of their organization? This literature, which is primarily based on agency theory, states that there is a separation of ownership and control in organizations, and because executives' interests are likely to diverge from owners' interests, executives may pursue their own interests over the interests of owners. Agency theory proposes that pay-for-performance systems are a key mechanism organizations can use to reduce agency costs (Jensen and Meckling, 1976). Therefore, under agency theory, an executive's pay is expected to vary with the performance of the organization he or she leads. Yet, although there is a substantial amount of research that investigates pay-forperformance in for-profit firms, the results are generally mixed. Additionally, very few studies have addressed the pay incentives of nonprofit leaders. Therefore, we are left without a clear understanding of how organizations are compensating their top executives and whether agency theory offers the best explanation of executive pay. My three-paper dissertation seeks to provide a better account of how organizations in different sectors use pay-for-performance systems to reward their top executives and why organizations across sectors may compensate their CEOs differently. More specifically, I investigate the pay-performance link in both for-profit firms and nonprofit organizations, which includes "charitable and religious" organizations and labor unions. In the first chapter of my dissertation, I examine whether the strength of the relationship between executive pay and organizational performance increases with performance level, and how this relationship compares in the for-profit and nonprofit sectors and between female and male CEOs. In my second dissertation chapter, I study whether nonprofit CEOs are paid based on organizational performance and what organizational factors affect the pay-performance relationship in charitable nonprofits. Last, my third dissertation chapter focuses on the pay of union leaders by examining the extent to which two commonly used compensation theories, that is, agency theory and tournament theory, help explain the pay of union presidents.

Author: Michael David Moss
Publisher:
ISBN:
Category : Arts administrators
Languages : en
Pages : 66

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Author: Helmut K. Anheier
Publisher: Springer Science & Business Media
ISBN: 1461501318
Category : Social Science
Languages : en
Pages : 439

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Book Description
This volume addresses the need to revisit the economic theories from the last two decades that have contributed to the development of a concentrated research agenda on nonprofit organizations. Long neglected as a topic of theorizing and empirical investigation by mainstream economics in particular, these initial theories of nonprofit organizations from the late 1970s and early 1980s continue to shape theoretical and conceptual efforts. Importantly, their influence extends beyond economics and informs sociological and politics science approaches to the set of organizations and institutions located between the market firm and the state agency as well. While the theoretical map of nonprofit research has expanded beyond these early attempts and now include several other major theories such as stakeholder approaches, supply-side or entrepreneurial theories, institutional theories and comparative approaches. This work suggests that it is time to take stock and reexamine some of the basics from which these economic theories operate.