Non-profit executive compensation
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Address the concerns and strategy for executive compensation in a not-for-profit/charity setting.
Begin by reading and critically analyzing the case study "Nonprofit Executive Compensation: How Much is Too Much?" by Craig E. Johnson.
What are some of the advantages for a not-for-profit organization that pays its executives similarly to a for-profit business? Explain using specific details.
What are some of the disadvantages of expecting executives to work for less in a not-for-profit than they would in a comparable position in a for-profit corporation? Explain using specific details.
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Solution Summary
Issues relating to non-profit executive compensation are discussed in a structured manner in this response. The related references are also provided.
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Some of the advantages for a not-for-profit organization that pays its executives similarly to a for-profit business are that non-profits including charities can easily use strategies that are associated with businesses. The non-profit can recruit MBAs, carry out market research, do advertising, and abandon unproductive activities. The advantages of such an approach are that the not-for-profit organization will experience a remarkable increase in programs and revenues (1). These not-for-profit organizations will increase their outreach and enable them to fulfill their mission. The key advantage for not-for-profit organizations that compete against for-profit organizations is that the organization gets the CEO it wants. The high salary is a huge inducement. Also, the not-for-profit organization gets the best executive in the field; the person can achieve the goals of the organization and run the organization well, Moreover, these CEOs become the key to the success of the not-for-profit, and the organization gets access to the rare ability. The not-for-profit organization that recruits CEOs for-profits gets access to exceptional skills, their personalities, and their disposition to be the CEO of a top company. Further, the not-for-profit organizations that get such CEOs are that their ...
Education
- BSc , University of Calcutta
- MBA, Eastern Institute for Integrated Learning in Management
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