Anyway, one of the feature articles in this edition has to be one of the stupidest things I have ever read. The whole thing is one big long lament about the puny salaries of local homeless non-profit's CEOs. In the article they provided a list of local NPs, their budgets and their CEOs' salaries. It is ridiculous. Some of the CEOs have salaries that take up more than 30% of the total budget! On average their salary takes up nearly 5%. This is outrageous. All I ever hear about are the "exorbitant" salaries paid to the heads of big corporations. I never hear about how non-profit CEOs are fleecing the public. Let's just look at some numbers here.

Just look at that. It boggles the mind! Non-profit CEOs get paid, on average, more than 100 times the amount that CEOs of big companies (I used the top 28 from the Fortune 500) relative to the organizations' budgets. How is that fair? Okay, we're just looking at averages, that's true. Let's look at the medians then. For nonprofits, the median salary as a percentage of organizational budget is 7.5%, that's MORE than the average. For major corp. the median is 0.0162%, LESS than the average. Now are you happy? We looked at median, and it just got worse! Okay, I will grant you that there is one non-profit that pays the CEO $0.00. There is also one that pays the CEO $39,000 on a budget of $121,000; that's more than 30%. Sickening. The most that ANY CEO of a major corporation gets paid, as a percent of revenue, is 0.18% (Valero Energy). And that takes into account all the long term benefits. If we just looked at salary it would be much much lower.
Just for the heck of it, Let's throw out most of the Fortune 28's revenue. Let's only look at salaries vs. profit. Check out the chart.

I think I just threw up in my mouth a little. As a percent of profits, the CEOs of nonprofits get paid INFINITY PERCENT! That is so incomprehensible, that, well, I can't comprehend it. INFINITY PERCENT! Even the major corporations only pay, on average, about 0.7%.
So all of you out there complaining that Oil Co. CEOs get paid to much and what not. Change your target. It is the non-profit CEOs that are getting paid at levels that are completely out of whack.
Stupid non-profits.
