New York Gov. Announces Nonprofit Compensation Review

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August 3, 2011; Source: | In the wake of a high profile dust up about the compensation of executives of a large agency serving the developmentally disabled in New York, Governor Cuomo has announced a task force to investigate compensation levels at nonprofits doing business with the state. “Not-for-profits that provide services to the poor and the needy have a special obligation to the taxpayers that support them,” Cuomo said. “Executives at these not-for-profits should be using the taxpayer dollars they receive to help New Yorkers, not to line their own pockets.” According to a press release the task force will be led by New York State Inspector General Ellen Biben, Secretary of State Cesar A. Perales, Medicaid Inspector General Jim Cox, and Superintendent of the Department of Financial Services Benjamin Lawsky.

While NPQ understands why this task force would be announced in the wake of the article about the Levy brothers, we would be more comfortable if Cuomo had announced a review of all vendor CEO salaries where services are being provided to the poor and needy. What are your thoughts about this review?—Ruth McCambridge

  • Marian

    I agree, Ruth. I would prefer if the governor announced a review across the board. The way it was stated in the NY papers made it read, to the general public, like every worker makes over $100,000 in the organizations for the disabled. And why pick that number? We certainly want some licensed professionals in schools whose salaries are around that now-demonized number. The governor’s statement gives an opinion before the review. Ack, so much work to do on the subject . . .

  • Trix Niernberger

    I agree too. For the most part, non-profits pay close to slave wages and that is the reason the state wants to contract with them–because services are cheaper to provide. Why not look at all non-profit compensation? Although there may be a few CEO offenders, they’ll find that the state gets a lot for their money.