Charity Evaluation: CEO Salary

    Published: 06-16-2009
    Views: 23,799
    Lindsey Struck from Charity Navigator shares ways to evaluate a CEO’s pay at charities.

    Lindsey Struck: Hi! I'm Lindsey Struck, Program Analyst at Charity Navigator. We realize there was a great deal of misconception among the public with regard to how much is too much compensation for a non-profit CEO. In our research we found that the average salary for non-profit CEO is in the low six figures, which is by no means excessive for mid to large size organization. So, how can you determine if compensation of a Charity staff leaders appropriate. One indicator is whether or not the organization has compensation committee in place. This committee will help determine appropriate CEO compensation by collecting comparative data from like minded organizations that is similar in size and locations, consider also the performance of the charity in relation to the CEO pay.

    Many donors assume that charity leaders work for free or minimal pay and are shock to learn they earn six figure salaries. What many row meaning donors fail to consider is that these CEOs are typically running multi-million dollar operations that endeavor to help change the world. Leading one these organizations requires a great deal of skill and expertise and so attacking and retaining the right caliber leader requires a competitive level of compensation. Avoid charities that do not report CEO compensation, or if the charity is given CEO alone. I hope these tips help equip you to evaluate the appropriateness of individual charity CEO compensation. 1

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