Open Thread Thursday: Another Overpaid Nonprofit CEO?

My response to such an increase, "Where is the board?" The board is responsible for the financial stability and governance of this non-profit. The Executive Director does not work in a vacuum. The board has fudiciary oversight of Metro Orlando's Blood Bank. They are ultimately responsible for the adherence to the non-profit's mission and financial responsibilities. The E.D. answers to the board.

Okay, there are a lot of grammar errors in that previous comment by me- that's what happens when you get passionate about something! Please excuse the mistakes.

Whoa. I've been following this story because I'm originally from Florida, and one of my first non-profit experiences was working with (at the time) the Manatee Community Blood Center, which was eventually absorbed into Florida Blood Services, which is separate from Florida's Blood Centers, but essentially are similar in how they are run, that they utilize donated blood from volunteers, etc. I am shocked that the salary for this ED is 605k....but even more shocked that they laid off 42 employees, who were front line employees, from my understanding. While there is an awful lot of regulation and management involved in running a non-profit blood center, it simply cannot exist without the phlebotomy techs, volunteer coordinators, lab techs and the "front line" or non-administrative staff who are the heart & soul of bringing in donors and ensuring they have a safe, positive experience, as well as ensuring that the blood products remains of high quality and is available when needed. A 10% pay cut to this ED's salary (or CEO, whomever it is), would pay for at least 3 of these employee's annual salaries alone... I don't agree that just because you work for a non-profit, by nature you should expect to live in poverty- people should be compensated for their time, skills and effort appropriately, regardless of whether it's a non-profit org. or a big corporation, but at the same time, as a executive director/CEO/leader, you are the voice of the organization and are charged with making sound judgment calls that best serve your mission, your audience/constituents, and the greater community. I feel that receiving a 17% pay increase in the face of laying off 42 individuals is not a sound judgment call.

Yes, this is indeed excessive pay! Anytime a leader is taking a pay raise while planning to make layoffs, not only is it bad PR, it is poor leadership and will only decimate goodwill and morale among those staff members spared from the layoffs.

The only case in which I would be willing to not completely write off the board of this organization would be if there were some sort of automatic pay raise clauses in the CEO's contract (hopefully with some clear goals to be met before the raise is applied).

I hesitate to say this -- because I do believe non-profits leaders should be able to make a very good wage. BUT, If this organization's mission is most important, I find it hard to believe this raise and salary equates to more valuable than the value of the work of at least a few of those 42 laid off people. Said another way -- is that raise and salary driving the success of the mission of the organization more than a slightly reduced salary and four or five retained employees? That would be a hard case to make.