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Executive compensation at non-profits is not necessarily related to the effectiveness of the group -- or in CR's case, the accuracy of its ratings.
It is an interesting subject though. Let's say a retired Fortune 500 CEO decides they want to use their knowledge and experience to help a charity thrive. How much should they be paid? Should they volunteer their time? Should they expect to be paid what they were making before retirement? Something in between?
Many people say retired CEOs do not need the money, and any salary they might make would come from 'program services' -- so they should accept a salary of $1.
Others might respond that if a charity offers a salary of $1, they will not get many takers -- that the most effective CEOs will be drawn to the groups that pay the most..
Some point out that while the CEO of a non-profit might make what seems like an excessive salary, the organization is now pulling in an amount that is many times the CEO's salary so it is money well spent.
I'd say it is unrealistic to expect highly competent executives to work for free. A good argument can be made that they *could*, and perhaps should, but apparently most will not. Perhaps because they cannot break free from the idea that salary = value. Perhaps they think that working for $1 gives the appearance that they are 'beneath' the other non-profit CEOs? Just a thought.
In their mind, they may be thinking that they are already "sacrificing" a great deal, because they made 20x more at their old job.
It is an interesting subject though. Let's say a retired Fortune 500 CEO decides they want to use their knowledge and experience to help a charity thrive. How much should they be paid? Should they volunteer their time? Should they expect to be paid what they were making before retirement? Something in between?
Many people say retired CEOs do not need the money, and any salary they might make would come from 'program services' -- so they should accept a salary of $1.
Others might respond that if a charity offers a salary of $1, they will not get many takers -- that the most effective CEOs will be drawn to the groups that pay the most..
Some point out that while the CEO of a non-profit might make what seems like an excessive salary, the organization is now pulling in an amount that is many times the CEO's salary so it is money well spent.
I'd say it is unrealistic to expect highly competent executives to work for free. A good argument can be made that they *could*, and perhaps should, but apparently most will not. Perhaps because they cannot break free from the idea that salary = value. Perhaps they think that working for $1 gives the appearance that they are 'beneath' the other non-profit CEOs? Just a thought.
In their mind, they may be thinking that they are already "sacrificing" a great deal, because they made 20x more at their old job.
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