October 8, 1998 | Read Time: 2 minutes
Top executives at the nation’s health and education charities are earning an average of $161,600 this year — 7 per cent more than last year, according to a new survey by the Towers Perrin management-consulting company.
People who hold less senior positions are not necessarily doing as well: Among all employees of those two types of groups, salaries rose by an average of 4.2 per cent.
The average increases in both cases were higher than the rate of inflation, which was 2.3 per cent in 1997.
The survey includes data from 439 non-profit groups, including 78 education organizations and 73 health and social-welfare groups.
The remaining participants were primarily trade and professional associations. Nearly half of the respondents were from the East Coast, including 75 from the District of Columbia, 88 from Virginia and Maryland, and 53 from New York City.
The median compensation reported by chief executives was $177,400, meaning that half of the survey’s participants made more and half made less. The median base salary for chief executives was $172,300.
Jim Moss, a principal at Towers Perrin, said this year’s survey marked the first time that more than half of the respondents reported giving their top earners additional cash compensation to supplement their base salary.
Nearly all survey participants — 90 per cent — provided special benefits and perks to their top executives, including supplements to standard retirement plans.
Among health and social-services groups, 37 per cent of chief executive officers received retirement benefits not offered to rank-and-file employees, and 35 per cent received supplemental life insurance. But only 5 per cent were allowed to fly first class on business trips and only 1 per cent received a country-club membership or chauffeur services.
Among education organizations, 31 per cent of chief executives received supplemental retirement benefits, and 32 per cent received supplemental life insurance. But as with health groups, few education executives — 10 per cent — were allowed first-class air travel, 5 per cent were given a membership to a country club, and just 1 per cent had a chauffeur.
Among the survey’s other findings:
* The highest-paid chief executive in the survey was employed by a trade organization and earned $890,000. The lowest-paid, who was employed by an education charity, earned $49,000.
* The average salary for chief financial officers at all organizations was $86,500. At health and social-welfare groups, the average was $87,400, and at education groups, it was $75,900.
* The average salary for top fund raisers at all organizations was $85,000. At health and socialwelfare groups, top fund raisers earned an average of $96,800, and at education groups they earned $80,800.
Copies of the report on the survey results, “1998 Management Compensation Report — Not-for-Profit Organizations,” are available for $200. Contact Lynda McCloskey, Towers Perrin, 1001 19th Street North, Suite 1500, Rosslyn, Va. 22209; (703) 351-4749.
