Today's New York Times highlighted what may become a terrible trend because it effectively reduces the role and authority of nonprofit boards. The trend: federal officials want limits set on salaries (e.g. Boys and Girls Club) and states are putting salary ceilings in motion.
Now for a moment, put aside the fact that nonprofits choose to receive federal and state monies to better achieve mission. Nonprofit Boards are the one group of individuals with authority to establish Exec compensation. While I recognize that the system may not be perfect, salaries represent in part or wholly, performance. The more "I" produce, the more I will be compensated. It's also true of course that nonprofit boards aren't all that good at setting performance goals and matching compensation plans with these goals but this is the basic idea.
But now, government is stepping in and saying to nonprofit boards: "We'll tell you what you can pay AND we will tell you what your performance goals will be". No! This can't be. Nonprofits are contractors with clear organizational or program goals. If a nonprofit fails to meet these goals -- TAKE AWAY THE MONEY! Otherwise, government, stay out of a nonprofit's operations. Nonprofit boards can do compensation just fine -- and, it's their right and obligation!