A Call for Executive Pay Reform

Posted on August 8, 2011

Kenneth J. Dudek
President, Fountain House

We must create a standard review process and ethical guidelines to govern executive compensation. Once developed, these principles should be applied equally to hospital executives and directors of other non-government funded nonprofits.
Nothing underscores this need like the recent story of the Levy brothers, who earned close to $1 million a year each as the two top executives running a Medicaid-financed nonprofit organization.
I am personally deeply offended by the exorbitant salaries the Levys paid themselves. What were they thinking? Yes, I believe that being an executive of a nonprofit is a difficult and stressful job for which people should be reasonably compensated, but there’s a problem when the people who choose to serve the most vulnerable among us divert mission-critical funds to support excessive lifestyles.
Nonprofit leaders should be held to a higher standard on this issue. We have to raise the bar so that the general public trusts us and embraces the vital work of the organizations we oversee.

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