Excessive Compensation

Whatever term we decide to call it, "excessive, unreasonable or high" compensation for nonprofit executives or leaders has long been a controversial public discussion. It is an issue that has been existing in practice in the nonprofit sector, for at least the last two decades; for as long as nonprofit organizations have been in existence. It is beginning to spawn intense acrimonious public criticisms, disdain and distrust for the nonprofit sector. There is an outcry today among some of the general public who are no longer ignorant of the reality of the situation and are calling for a government regulation or limit to address and ratify this problem. On the other hand, some of us yet deliberately overlook the situation and fail to admit that this is a problem.

This is a policy problem in light of the fact that there is an existence of equity issue here, which is not necessarily the case with the private organization. "What was once considered a ‘fact of life' condition has now become a policy problem." The ultimate question to answer is exactly what defines "excessive?" This is the starting point and, it is logical to argue that it is due to the ambiguity of the word that nonprofit practitioners come up with different interpretations of its meaning. But most importantly, the possible causes of this problem can be attributed to ethical issues. Mission statements are written and documented by the board of trustees and committee of every nonprofit organization. These mission statements specify the objectives of the organizations and serve as guidelines for them to follow in their daily operations. Yet, we see that the opposite is the case in practice.

Confronted with the daunting array of economic failures our country is facing today, it is high time the government intervened by all means at a state and federal level with strict enforceable policy reformations to address and ratify this problem. The general public