Nonprofits in N.Y. Could Face Salary Caps Under New Contractor Rule
January 19, 2012 | Read Time: 1 minute
New York Gov. Andrew Cuomo on Wednesday set a limit of $199,000 on the amount of state money that contractors can put toward paying their executives, both nonprofit and commercial, says The New York Times.
It also requires that 75 percent of a contractor’s state support be used to provide services, a ratio that will rise to 85 percent by 2015.
The governor established a commission last year to examine wages among state contractors amid reports that the heads of a Medicaid-funded organization that cares for developmentally disabled people were receiving seven-figure paychecks.
Executive compensation at large nonprofit organizations such as hospitals might not be affected by the cap because they derive most of their support from the federal government or private philanthropy.
