Executive Compensation
Look at Executive
Compensation
The highest paid senior executive jobs and top management
positions are usually paid more than six times those, which are the
lowest paying employee.
According to a report from the Institute for Policy Studies, the
ratio of standard executive compensation to employee income
increased from 301:1 in 2003 to 431:1 in 2004. If the minimum wage
had risen as speedily as executive wages have since 1990, it would
stand at $23.03 an hour rather than $5.15. The statement concludes
that executives for military contractors profiting from the Iraq
conflict are experiencing highest salary increases.
However, we need to remember that such professional and
executive positions are salaried and do not have laws about working
hours. Executive search firms search for executive positions from
$125,000 to $1 million +. Competition for such highly paid jobs is
hard.
New Nonprofit Executive Compensation
Database
Because of the increased governmental regulation of executive
compensation, nonprofits need to be able to document the
compensation comparability data that they rely upon when
determining executive compensation. As a result, a new database
that provides a thorough list of executive compensation for
nonprofit organizations has been introduced.
The Internal Revenue Service (IRS) has been aggressively making
thousands of "compliance checks" of tax-exempt organizations
regarding the procedures used to determine executive compensation.
The breadth of information now sought by IRS agents is
remarkable.
Agents are seeking detailed evidence of informed decision-making
regarding how and when board members acquired and utilized
executive compensation comparability data. IRS agents are even
instructed to seek evidence regarding the variance between the
compensation paid and the compensation comparability data relied
upon.
At the request of the IRS, to assist in analyzing issues
relating to excessive compensation within 501(c)(3) organizations
and to satisfy the needs of compensation consultants and board
committees, Money-making Research Institute (ERI) created the
Compensation Comparables Assessor™ (CA+) software.
CA+ contains advanced search features that are particularly
valuable to federal and state regulators, as well as information
that compensation consultants, nonprofit executives and nonprofit
board members can benefit from. CA+ provides subscribers with the
ability to analyze the entire universe of Form 990 executive
compensation data for selected periods. CA+ is a user-friendly
software program. The user simply selects a position, NTEE code,
organization size and geographic area in order to analyze peer
groups.

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