• IRS Advisory Committee Recommends Online Guide for Setting Executive Compensation
  • July 22, 2010 | Authors: Marla K. Conley; Christine F. Cushman; Cynthia G. Fischer
  • Law Firms: Schnader Harrison Segal & Lewis LLP - Philadelphia Office ; Schnader Harrison Segal & Lewis LLP - New York Office ; Schnader Harrison Segal & Lewis LLP - Philadelphia Office
  • It is well known that Congress, the IRS and state attorneys general have become increasingly focused in recent years on the level of compensation nonprofit organizations provide to their executives. One has only to look at the newly revised IRS Form 990 to see that the reasonableness of executive compensation is under scrutiny in the nonprofit sector. But there are other signs as well. Some examples include: increased penalties for intermediate sanctions; compliance projects, audits and questionnaires designed to gather data on compensation; and compensation initiatives developed by state attorneys general to encourage boards of directors to be more deliberate about setting compensation.