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Managers of nonprofit organizations are rewarded for performance
Abstract
We consider the effect of performance on the compensation of nonprofit
executives. Performance is measured as the ratio of revenue from a
particular activity (such as fundraising or program services) to the
expenditures associated with those services, exclusive of managerial
compensation. This is consistent with previous works, which use
measures of size, spending, or budget percentages as measures of
performance. We also consider whether the compensation received by the
executives enhances their performance. The empirical results support
the hypothesis that compensation and performance are simultaneously
determined.
Journal
(2005)
vol16
no1
pages19-41
Categories
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Personnel
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Performance Appraisal
