Nonprofit executive pay: Round 3

Nonprofit executive pay: Round 3: "Nonprofit executive pay: Round 3
H.J. Cummins, Star Tribune
February 5, 2005 CEOPAY0205
Page:12

Fairview Health Services got called in for a checkup this week for a recurring complaint by Attorney General Mike Hatch: executive pay packages in Minnesota's nonprofit health care companies.
There's no doubt that executive pay at medical nonprofits these days looks a lot like those of their for-profit counterparts -- with country club memberships, leased cars, expense accounts and performance bonuses that can double their take-home pay. But what executive recruiters and salary consultants disagree over is whether this is a good idea.
Some with reservations, including Hatch, worry that pay formulas that stress revenue let money and not mission drive decisions. Others say nonprofit salaries should stay lower, because those executives don't face anything like the competitive risks of the open marketplace."