COMPENSATION UPDATE BY LAWRENCE ASSOCIATES » NJ Regulations Cap Executive Pay at Nonprofits

NJ Regulations Cap Executive Pay at Nonprofits

June 5, 2010

This is an interesting technique for capping executive pay at nonprofits: New Jersey regulations recently put in place a cap on the amount the state will pay for the salaries of the top executives at social-service non-profits. The cap is somewhat limited in its effect because funds from non-state sources can be used towards executive pay without being limited by the regulations.

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About the Authors

Rick Lucash + Lindalee Lawrence
Boston - New York

Principals in Lawrence Associates, focusing on all compensation-related elements of human resources consulting services for tax-exempt healthcare, schools, colleges and universities, associations, foundations, and for private and service industry firms, law firms and technology-based businesses. We assist with executive compensation design, CEO compensation, salary comparison, wage and salary administration, salary surveys, job evaluation, organization design, incentive programs and pay for performance; and in responding to public disclosure of executive compensation. Lindalee holds an M.B.A. from the Wharton School and a B.A. from the University of Pennsylvania, and is a WorldAtWork Certified Compensation Professional (CCP). Rick holds degrees from the Cornell Law School and M.I.T. Lindalee served on the national ASHHRA Committee on Variable Compensation. She’s the author of the compensation chapter for the Health Care Administration Manual, winner of the 2007 ASHHRA Communications Award, published by Aspen Publishers.