Executive compensation at some of the country's most prominent non-profit institutions routinely exceeds $1 million, and with it comes increasing scrutiny, according to a report from The Chronicle of Philanthropy.
Every year, The Chronicle issues a report on the executive compensation of the nation's largest non-profit organizations that raise the most money from private sources, earn the most in grants and are followed by other watchdog groups.
Of the top 10 highest paid non-profit CEOs in 2010, five led hospitals. They included the following:
• Herbert Pardes, MD, former CEO of NewYork-Presbyterian Hospital in New York City: $4.35 million
• Gary Gottlieb, MD, CEO of Partners HealthCare in Boston: $3.14 million
• Delos "Toby" Cosgrove, MD, CEO of Cleveland Clinic: $2.25 million
• James Mandell, MD, CEO of Boston Children's Hospital: $1.86 million
• John Noseworthy, MD, CEO of Mayo Clinic in Rochester, Minn.: $1.64 million
Ken Berger, president of the non-profit group Charity Navigator, told Bloomberg Businessweek that having million-dollar compensation packages for those running public charities is "absurd." However, Chronicle Editor Stacy Palmer said it's also a sign of the times.
"Most [leaders] at non-profits are not millionaires, and it's been tough times with many people not getting raises," she said in the report. "But there's also a lot more focus on results, and that means paying for talent."
Every year, The Chronicle issues a report on the executive compensation of the nation's largest non-profit organizations that raise the most money from private sources, earn the most in grants and are followed by other watchdog groups.
Of the top 10 highest paid non-profit CEOs in 2010, five led hospitals. They included the following:
• Herbert Pardes, MD, former CEO of NewYork-Presbyterian Hospital in New York City: $4.35 million
• Gary Gottlieb, MD, CEO of Partners HealthCare in Boston: $3.14 million
• Delos "Toby" Cosgrove, MD, CEO of Cleveland Clinic: $2.25 million
• James Mandell, MD, CEO of Boston Children's Hospital: $1.86 million
• John Noseworthy, MD, CEO of Mayo Clinic in Rochester, Minn.: $1.64 million
Ken Berger, president of the non-profit group Charity Navigator, told Bloomberg Businessweek that having million-dollar compensation packages for those running public charities is "absurd." However, Chronicle Editor Stacy Palmer said it's also a sign of the times.
"Most [leaders] at non-profits are not millionaires, and it's been tough times with many people not getting raises," she said in the report. "But there's also a lot more focus on results, and that means paying for talent."
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