One task for nonprofit boards is to set the salary for their one employee, the executive director/CEO.
Today's Wall Street Journal reported that private school (mostly nonprofits) CEO salaries are heading toward the $1 million mark (often including housing and other benefits). As most of the boards reported, these salaries are comparable at least when comparing private schools. These salaries however are not comparable to the public sector (about 75% less). But that is neither here nor there and I am always inclined first to say that it is up to the boards and donors to discern what is reasonable and, it is likely that those individuals filling the positions are well credentialed and doing their jobs.
So why am I talking about this at all given my general opinion about nonprofit CEO salaries? Have you reviewed the salaries of the teachers working for these well-paid leaders? According to Salary Genius:
The average yearly salary for Private School Teacher in New York, New York is $59,952. If you are just beginning to work a new job as a Private School Teacher in New York, New York, you could earn a starting pay rate of $49,373 annually. As is true for most jobs and careers, you can expect your hourly pay rate or salary to increase as you gain experience and the longer you are employed with the same employer. In New York you could potentially make an average income of around $70,532 after several years on the job with increased wages. When pursuing your career of choice, you should compare salaries of similar professions and factor in variables such as health benefits and potential for raises and promotions over time.
Ok, then. Private school CEOs make roughly upwards of 15 times what their teachers make! The conversation really be focused on how well paid CEOs are or how significantly less paid those who do the work are paid? You be the judge.