Boston Globe quotes Croatan Institute president on excessive executive compensation
In the aftermath of investigative research by watchdogs, think tanks and journalists, as well as protests from labor, civic, and community groups, Massachusetts Attorney General Martha Coakley vowed to order nonprofits in the Commonwealth to disclose more information about the nature of their executive compensation packages. A survey of 25 large health insurers, universities, and other charitable organizations in Massachusetts found that all of them paid their leaders between $487,000 and $8.8 million a year in total compensation and offered them an assortment of benefits that are more commonly associated with the pay packages of corporate CEOs.
Todd Wallack quotes Joshua Humphreys, president and senior fellow at Croatan Institute who has studied pay at large universities in Massachusetts and found large gaps between the highest- and lowest- paid workers: "It is a very serious concern; you can attract people without paying so much money."
Dr. Humphreys applauded Coakley's effort to speed up the reporting of executive compensation, noting that many of the controversial pay packages are not fully reported until years after the executive has left the organization. "We do need more timely information about this to hold people accountable," he said.
To learn more, visit the Institutional Accountability program page.
Source: Todd Wallack, "Martha Coakley Targets Nonprofit CEO Pay," Boston Globe, December 19, 2013.