New Jersey Aims to Limit State Pay for Nonprofit CEO’s

New Jersey Gov. Chris Christie’s administration is proposing a cap on its wage payments for the heads of nonprofit social-service agencies that do business with the state, writes The Star-Ledger, in Newark.

Under the plan, the state would limit salary and benefit payments to charities’ chief executive officers to between $105,750 and $141,000, depending on the organization’s budget. Any compensation above the cap would have to be made up through private donations.

A state analysis found that the heads of more than half of 62 randomly selected service groups were paid more than the proposed caps last year. The state would save about $5-million by limiting executive pay and cutting back on travel, education, and other expenses for staff members at the charities, according to the New Jersey Department of Human Services.

Source: Chronicle of Philanthropy