Executive compensation and experience: A slight correlation

• DOI: http://doi.org/10.1002/ban.30647
• Date: 01 March 2018
• Published date: 01 March 2018

4 Board & Administrator Special Report

DOI 10.1002/ban © 2018 Wiley Periodicals, Inc., A Wiley Company All rights reserved

Executive compensation and experience:

A slight correlation

The chart below shows a one-time, fundamen-

tal reality of nonprofit CEO compensation that

appears to be disappearing: The more experi-

enced the nonprofit executive, the higher his or

her pay.

Those at the lowest end of the experience

scale—with 10–20 years’ experience—are earning

more than their counterparts with up to 40 years’

experience: $124,298 vs. $119,501. Administra-

tors with 40-plus years on the job make $140,920

annually, on average.

One interesting data point in this chart illus-

trates how the more experienced CEOs work with

larger boards. For example, CEOs with more than

30 years’ experience have boards that average

more than 13 members in size. CEOs with fewer

than 30 years’ experience work with boards that

average 10–11 members in size.

In 2017, the average board size reported in the

Board & Administrator network was 12 members. ■

Experience and pay

Percentage

Average

Salary

Median

Salary

Years of

Experience

Years in

Current

Position

Raise in

Past 12

Months Bonus Board Size

Term of

Contract

10–20 10% $124,298 $126,500 15 5 7% $4,067 11 1

21–30 27.5% $121,616 $127,934 26 14 4% $10,125 10 3

31–40 35% $119,501 $122,500 35 23 4% $4,725 13 3

41–50 10% $140,920 $145,140 44 32 5% $10,000 14 -

No Response 17.5% $106,243 $101,317 - 24 4% 5,280 15 3

Pay and the executive title

“Executive Director” remains far and away the

most common title in the Board & Administrator

network (65%), but it doesn’t generate nearly as

much when it comes to the executive’s salary.

Other popular titles (“CEO” and “President/

CEO”) all earn considerably more than “Executive

Director,” about $30,000 in fact. For execs who re-

sponded to B&A’s survey in 2017, the title “Presi-

dent/CEO” earned the highest pay, on average:

$142,803. “Executive Director” earned an average

salary of $111,838. “CEOs” also work with larger

boards, with a reported board size for that title of

16, on average, whereas the average board size

reported this year was 12 members. ■

Executive title and compensation

Percentage

Average

Salary

Median

Salary

Years of

Experience

Years in Current

Position

Raise in Past

12 Months Bonus Board Size

CEO 10% $141,500 $142,000 33 20 5% $6,250 16

Executive

Director

65% $111,838 $113,470 30 20 4% $5,167 11

President/

CEO

20% $142,803 $141,743 32 21 5% $15,500 15

President - - - - - - - -

Director 2.5% $101,317 $101,317 - 19 4 - 7

Other 2.5% $97,847 $97,847 - 17 - $2,500 13