I had this exact conversation with one of my classes on Friday. WWP manages what... $250, $300 million, and several thousand employees? Something that big, you're going to need to shell out some $$$ to get the management team you need to optimize that organization. Otherwise, people with that much talent are going to go over to the private sector.
I would say there's a compromise somewhere in the middle. I agree that compensation has to be in line with the responsibility to get the big gun CEOs that can manage and grow the brand. That said, the president of United Way Worldwide, one of the consistently highest performing charity organizations, with 1800 locations in 45 countries is only slightly higher. He manages not only the locations, but has ultimate responsibility for the employees and the activities of their 2.9M volunteers. Oh, and manages a paltry $5.18B in donations. (Financial Information | United Way Worldwide )
Now why would WWP pay a guy nearly the same salary that has such a small fraction of the responsibility? ($473k, Charity Navigator Rating - Wounded Warrior Project) No report of deferred compensation that I could find, but I'm sure it's been taken.
His resume certainly doesn't appear to justify it: Steven Nardizzi | Wounded Warrior Project
Here's Brian Gallagher's for comparison: President and Chief Executive Officer, United Way Worldwide | United Way Worldwide Note that he was an employee for 21 years before becoming CEO for the last 14.
What is the salary of president and CEO Brian A. Gallagher?
Brian Gallagher’s salary in 2014 was $532,552. Based on Mr. Gallagher’s successful performance of specific objectives in 2014, the Executive Compensation Committee and Board of Trustees provided him with incentive pay of $157,500.
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