Submitted by thanxhaveagood1 t3_z3m4h9 in pittsburgh
mmphoto412 t1_ixn11os wrote
Reply to comment by pAul2437 in Pittsburgh's largest nonprofit is concerned that its profits are down by thanxhaveagood1
That refers to IRS guidelines in disclosure of executive salaries and disclosure of how they determine what they should be compensated.
At best it’s a transparency measure.
Calling there salaries highly regulated based on what you provided is very misleading.
Also, nothing in the information you provided says they are required to be paid market rate, and not more.
pAul2437 t1_ixn317q wrote
“the IRS conducts a compensation review when it examines the 990 forms nonprofits have to file annually. In part II of Schedule J, nonprofits must disclose various types of compensation. The organization must also specify how compensation was determined:
- Compensation committee,
- Independent compensation consultant,
- Form 900 of other organizations,
- Written employment contract,
- Compensation survey or study, and/ or
- Approval by the board or compensation committee. Organizations which report excess benefit transactions must provide further detailed information on the nature of the excess benefit transaction under Form 990 Schedule L.”
“Funders, regulators, and the IRS have also taken action to curtail high salaries in the nonprofit sector by instituting numerous penalties and accountability measures. As a result, nonprofits must approach executive compensation with a strong focus on compliance.”
https://capacityexperts.com/nonprofit-excessive-executive-compensation/
mmphoto412 t1_ixn701m wrote
Those are all transparency measures, and measures to prevent one or a few people from making compensation changes unilaterally.
Nothing in there would prevent what us normies would consider “excessive compensation “
pAul2437 t1_ixn8b1d wrote
your definition of excessive compensation is made up and based on your feelings. Which is fine
Those are literally IRS guidelines and there are penalties for noncompliance
mmphoto412 t1_ixndy6b wrote
Cute…
There nothing in those guidelines to prevent excessive compensation. It’s about have an established process to set executive compensation.
Btw the “maket rate” you keep referring to is set by themselves. There are probably only dozen or so health companies at the same size.
Btw, a guideline is suggestion to on how to do something. It’s not a law, it’s not a binding regulation, it’s not enforceable
pAul2437 t1_ixngiax wrote
“Funders, regulators, and the IRS have also taken action to curtail high salaries in the nonprofit sector by instituting numerous penalties and accountability measures. As a result, nonprofits must approach executive compensation with a strong focus on compliance.”
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