CEO compensation and performance in US private foundations |
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| Authors: | Arthur Allen Brian McAllister |
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| Affiliation: | 1. College of Business, University of Nebraska‐Lincoln, Lincoln, NE, USA;2. College of Business and Administration, University of Colorado Colorado Springs, Colorado Springs, CO, USA |
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| Abstract: | In a large sample of US private foundations, we examine the association between CEO compensation and an accounting‐based measure of performance, administrative efficiency. We document a positive pay–performance association across time within foundations, but a negative association across foundations. We interpret our evidence as follows: some foundation boards reward CEOs for high administrative efficiency, which results in a positive pay–performance association. However, some foundations are poorly monitored relative than others, resulting in higher CEO compensation and lower efficiency. |
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| Keywords: | compensation efficiency nonprofit performance private foundation |
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