tag:blogger.com,1999:blog-8565163061165974643.post7308741637580349333..comments2023-07-27T04:33:11.719-05:00Comments on UJ Thee and Me: COMPENSATIONGracklehttp://www.blogger.com/profile/14315763008609379449noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-8565163061165974643.post-7495923259344972392016-01-12T07:49:07.167-06:002016-01-12T07:49:07.167-06:00To the Anonymous Commentator whose attack on a Fed...To the Anonymous Commentator whose attack on a Federation CEO who recently left his position I just rejected, I don't know that your allegation of a "firing" was true and, if not, your allegation was defamatory.RWEXhttps://www.blogger.com/profile/01583858140298821830noreply@blogger.comtag:blogger.com,1999:blog-8565163061165974643.post-25378330841661462062016-01-11T11:05:31.774-06:002016-01-11T11:05:31.774-06:00I would suggest that the real shanda is not the pa...I would suggest that the real shanda is not the pay of CEOs, but the enormous disparity between CEO compensation and the compensation of other staff. It is common at Jewish organizations for the CEO to make 2, 3, or 4 times what the next highest paid professional receives. How much more so for the rest of the staff! Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8565163061165974643.post-74945485078413998622016-01-10T20:11:42.251-06:002016-01-10T20:11:42.251-06:00Richard:
You of all people know darn well that St...Richard:<br /><br />You of all people know darn well that Steve Nasatir makes far beyond what is listed as his salary. He and some of the longtime senior heads (read older males who just would not step down for younger, often deserving female, talent) signed lucrative deferred compensation deals many moons ago.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8565163061165974643.post-91049085544363787112016-01-08T19:49:18.686-06:002016-01-08T19:49:18.686-06:00I don't know if you are aware of the document ...I don't know if you are aware of the document from Guidestar on the issue of Excess Compensation or the IRS regulations. If not, check this link. https://www.guidestar.org/ViewCmsFile.aspx?ContentID=3890. <br />Here's one important excerpt. "Nonprofit compensation practices can also draw fire from the IRS.<br />The IRS is charged with enforcing the Federal Private Inurement<br />Prohibition, which strictly forbids a tax-exempt organization’s decision<br />makers—board members, trustees, officers, or key employees—from<br />receiving unreasonable benefits from the nonprofit’s<br />income or assets. Excessive compensation paid to nonprofit executives<br />is the most common violation of this prohibition,1<br /> and it can<br />cause the IRS to levy hefty fines on the persons involved."<br />What's allowed? Charities can pay their executives market rate.<br />• Market rate is determined by researching what someone in a<br />similar position would earn at an organization that is of the<br />same size and has a similar mission or field of activity.<br />• Charities can look at for-profit compensation when determining<br />market rate, as long as the job, organization size, and<br />organization mission/purpose are comparable.<br />What are the consequences? Consequences of Not Following the Rules<br />Penalties for excess compensation range from fines to revocation<br />of an organization’s tax-exempt status. Fines are the more<br />likely consequence. Known formally as excess benefit transaction<br />excise taxes and informally as intermediate sanctions, the fines<br />can be levied on both the executive who received the overpayment<br />and the board members who approved it or who knew<br />about the excess but did nothing to prevent it. For example:Say the executive director of ABCD Charity received a compensation<br />package of $250,000 in FY 2008. After an examination<br />(or, in layperson terms, an audit) of the organization, the IRS<br />establishes that $150,000 was the appropriate compensation for<br />the position at that time. As a result of this determination: The IRS requires the executive director to repay the<br />$100,000 overpayment to the organization—with interest.6<br />If the executive director fails to repay this amount, or repays<br />only part of it, a 200 percent excise tax may be imposed on<br />the amount yet to be repaid.7<br />• The IRS may require the executive director to pay an excise<br />tax equal to 25 percent of the overpayment. In this example,<br />the excise tax would be $25,000.8<br />• The IRS may require each board member who approved the<br />excess compensation, or any board member who knew about<br />the excess but failed to prevent the overpayment, to pay an<br />excise tax equal to 10 percent of the overpayment, not to<br />exceed $20,000 per transaction.9<br /> In this example, should<br />the IRS decide to impose the excise tax, each board member<br />would owe $10,000.<br /><br />Our federation board annually (or at contract renewal) reviews the terms and compensation of the CEO with full transparency. I wonder if others do also. <br />Are you or anyone aware of these findings and penalties against any federation, federation CEO or Jewish organization CEO? I wonder if there are any"finders fees" for whistle blowers? Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8565163061165974643.post-25707703983977707922016-01-08T10:07:16.289-06:002016-01-08T10:07:16.289-06:00Given the opening part of Richard's previous &...Given the opening part of Richard's previous "Javert" post, I suggest that salaries be based upon FBI payscales That would save us money and also better reflect services rendered.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8565163061165974643.post-90073620753996191452016-01-08T08:22:48.713-06:002016-01-08T08:22:48.713-06:00oh richard, richard
do you really feel that the co...oh richard, richard<br />do you really feel that the comp numbers are comprehensive?? Do you really think every Federation is reporting the whole story?? Do you really believe that your Steven Nasatir receives significantly less than Cleveland's Steven Hoffman? The good professionals deserve to be recognized and appreciated. The ones with no track record, just lumped into the bunch, really don't. Maybe the packages are too high, maybe too low, but apparently the market is what the market is. And, than our cherished system has the problem of zero none nada bench strength. Whose fault? Principally JFNA. When folks retire, we have no logical pool to go to. Tragic. This is an area that needs our leadership attention. any takers?Anonymousnoreply@blogger.com