Sandra B. Richtermeyer
University of Wyoming
Kenton B. Walker
University of Wyoming
Abstract: This study investigates empirical associations between the use of incentive compensation systems, organizational performance and compensation paid to executive directors of nonprofit organizations. The results indicate that organizations that use incentive compensation systems have higher levels of executive compensation than organizations that do not use incentive compensation systems. For the full sample, organization size, performance based on revenue growth, the presence of an incentive plan and gender are significant predictors of executive compensation but, program expense ratio as a performance measure is not significant. The results vary when the sample is partitioned based on organizational mission.
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