Tag: boards

When Boards Are Deciding What To Pay Nonprofit CEOs Keeping Them Out Of The Room Yields Good Results
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When Boards Are Deciding What To Pay Nonprofit CEOs Keeping Them Out Of The Room Yields Good Results

Ilona Babenko, Arizona State University The Research Brief is a short take about interesting academic work. The big idea Keeping nonprofit chief executive officers out of meetings when members of their boards discuss or vote on compensation can lead to these CEOs making less money and working harder. This is a key finding from a study of nonprofit pay I recently completed with two fellow finance scholars, Benjamin Bennett and Rik Sen. We reached this conclusion after reviewing data for more than 14,700 nonprofits across the country from paperwork most nonprofits must file with the Internal Revenue Service every year, known as Form 990, and the associated Schedule J, which includes compensation. We zeroed in on 1,698 nonprofits located in New York to see if their CEO pay changed after ne...