• 4 Posts
  • 607 Comments
Joined 3 years ago
cake
Cake day: June 9th, 2023

help-circle













  • It’s a tricky one.

    You might argue that charities would be better off paying their CEOs a lot less but I think that is unrealistic.

    You need a good CEO to manage any company that has annual revenues of $185m.

    If you pay less than $500,000 then it will have a significant effect on the bottom line and that effect is likely to be more than that $500,000 per year.

    As an example, if you halve the salary of the CEO then you’ve saved $250,000 per year but if the new CEO is a little worse and revenue drops by 0.25% then you’ve actually lost $200,000 per year.

    It’s a fact of life that CEOs in the private sector earn a lot of money and so charities have to offer competitive rates.

    Also, I’d be surprised if $500,000 isn’t significantly below market rate for a company that has revenues of $185m.