US Charity CEO Salaries on the Rise
Wednesday, 25th August 2010 at 11:48 am
Despite the economic downturn in the US, Not for Profit CEO salaries are on the rise – by almost 5 percent according to an annual study.
The Charity Navigator has released its sixth annual CEO Compensation Study looking at more than 3000 mid to large sized US-based charities that depend on support from the public.
The analysis reveals that the median salary for top charity leaders is around $US150,000, however the study found a significanct number of CEOs on six-figure salaries.
The study is based on a charity's recently filed IRS form which includes salary, cash bonuses and expense accounts of CEOs.
The Charity Navigator's President and CEO Ken Berger says many donors are concerned by what they believe to be excessive charity CEO pay.
Berger says well-meaning donors fail to consider that these CEOs are running multi-million dollar operations that endeavor to change the world.
He says it is important for donors to know that while the average salary is roughly $150,000, a six-figure salary in not necessarily a sign of excessive pay for a mid-sized to large sized charity.
The report also highlights what it describes as questionable salaries such as those that approach and exceed a million dollars and suspect compensation policies such as charities that have multiple highly-paid family members on staff.
The report says only 14 charities paid their CEO more than $1 million. Education Not for Profits were the highest-paying sector, with average CEO compensation of $272,645 and raises of 5.9 percent.
It says religious NFP CEO pay was the lowest, at an average of $90,000 and charities with more than $500 million in total expenses reported median CEO pay of $695,379. Not for Profits with expenses ranging from $1 million to $3.5 million reported median pay of $95,481.