Executive salaries up at nonprofits in 2008, but many CEOs now taking cuts

Posted on: September 29, 2009

Monday (9/28) on National Public Radio, Pam Fessler reports, “It’s one of those things that irks charitable givers no end—the high salaries paid to some nonprofit CEOs. And a new study by The Chronicle of Philanthropy, released Monday, shows that the top pay at the nation’s largest nonprofits rose again last year, with some eye-popping results. But the survey also found signs that these high-dollar salaries may be starting to turn around. … The survey found that many nonprofit CEOs earned half a million dollars or more last year, and that the median pay raise was 7 percent. But to be fair, says Chronicle editor Stacy Palmer, most of those salaries were set before charities and foundations felt the effects of the recession. … One-third of the 325 groups surveyed say their CEOs are taking pay cuts this year, or forgoing raises and bonuses. Palmer says they probably have little choice. … The Chronicle of Philanthropy found the most lucrative pay packages at universities and hospitals. … Nonprofits are reluctant to talk about the subject, but those that do defend the high salaries as necessary to attract good talent.”

Posted September 29, 2009