Ill. Lawmaker Seeks Greater Disclosure on Nonprofit CEO Pay

An Illinois legislator has introduced a measure aimed at closing a loophole that allows state-supported nonprofit groups to skirt reporting requirements on executive compensation, writes the Chicago Tribune.

Chicago Rep. Greg Harris’s bill would require state-funded charities to disclose “ownership interests, operating agreements, partnerships or other relationships” with for-profit entities, as well as wages for executives who are officially paid by commercial management companies.

Mr. Harris said he filed the legislation in response to reporting by the Tribune, which showed that pay for top officials at 18 major state-supported charities rose at double the rate of private-sector salaries in 2009 and ’10, and that some organizations are paying chief executives through for-profit contractors, which allows them to avoid disclosing the compensation.