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Managers of nonprofit organizations are rewarded for performance
Author(s) -
Carroll Thomas,
Hughes Patricia,
Luksetich William
Publication year - 2005
Publication title -
nonprofit management and leadership
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.844
H-Index - 54
eISSN - 1542-7854
pISSN - 1048-6682
DOI - 10.1002/nml.88
Subject(s) - compensation (psychology) , revenue , business , executive compensation , internal revenue , empirical research , accounting , marketing , psychology , service (business) , social psychology , philosophy , epistemology
We consider the effect of performance on the compensation of nonprofit executives. Performance is measured as the ratio of revenue from a particular activity (such as fundraising or program services) to the expenditures associated with those services, exclusive of managerial compensation. This is consistent with previous works, which use measures of size, spending, or budget percentages as measures of performance. We also consider whether the compensation received by the executives enhances their performance. The empirical results support the hypothesis that compensation and performance are simultaneously determined.