Thoughts on CEO Compensation

The Globe & Mail published a report on charitable sector CEO compensation.  My thoughts on CEO compensation, for what they are worth...

1. Charitable sector CEO compensation should not be compared to CEO's in the private sector, just as government salaries should not be compared to the private sector 
2. Charitable sector CEO compensation should not be based on dollars raised, or on operation overhead
3. Charitable sector CEO compensation should not be set by donor emotional giving; nor should it be set by government granting policies

So what should charitable sector CEO compensation be based upon?

1. Charitable sector CEO compensation should be set by market trends within the sector. An example of this is the research conducted by the Boland Survey
2. Charitable sector CEO compensation should be determined by social impact - i.e. how many lives have been saved, new technologies implemented, children educated, systems strengthened
3. Charitable sector CEO compensation should be outlined in an organization's business plan that has been approved by the Board of Directors.  The economics of the organization is determined as much by costs of running a program as it is by determined by access to resources (i.e. donor support and government funding) and what the market can bare (fee-for-service revenue).