Serving Others at the Expense of Self: The Relationship between Nonprofit CEO Compensation and Performance in Trade and Professional Associations
This paper investigates the organizational importance of relative CEO compensation in trade associations and professional societies. It is known that there is variation in how much pay is tied to performance in different subcategories of nonprofit organizations. However, instead of looking at how pe...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Midwest Public Affairs Conference
2018-08-01
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| Series: | Journal of Public and Nonprofit Affairs |
| Subjects: | |
| Online Access: | http://www.jpna.org/index.php/jpna/article/view/135 |
| _version_ | 1811204810489200640 |
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| author | Marina Saitgalina Andrew A. Bennett Christopher S. Reina Joseph E. Coombs |
| author_facet | Marina Saitgalina Andrew A. Bennett Christopher S. Reina Joseph E. Coombs |
| author_sort | Marina Saitgalina |
| collection | DOAJ |
| description | This paper investigates the organizational importance of relative CEO compensation in trade associations and professional societies. It is known that there is variation in how much pay is tied to performance in different subcategories of nonprofit organizations. However, instead of looking at how performance affects pay, we investigate how CEO compensation affects organization performance when CEOs are aware of their peer compensation and are able to influence their own. We hypothesized that CEOs who knowingly earn less will be associated with both greater financial and nonfinancial organizational performance. This altruistic perspective draws on theories from leadership and psychology rather than the more typical agency perspective and focuses on the alignment between CEO and stakeholders in a nonprofit setting. We find strong support for the relationship between lower relative CEO compensation and organization performance, while results for the moderating effect of organizational size are mixed. |
| first_indexed | 2024-04-12T03:19:59Z |
| format | Article |
| id | doaj.art-e8ed1afb07c4440ea70b45974d32e77c |
| institution | Directory Open Access Journal |
| issn | 2381-3717 |
| language | English |
| last_indexed | 2024-04-12T03:19:59Z |
| publishDate | 2018-08-01 |
| publisher | Midwest Public Affairs Conference |
| record_format | Article |
| series | Journal of Public and Nonprofit Affairs |
| spelling | doaj.art-e8ed1afb07c4440ea70b45974d32e77c2022-12-22T03:49:57ZengMidwest Public Affairs ConferenceJournal of Public and Nonprofit Affairs2381-37172018-08-014215618010.20899/jpna.4.2.156-18094Serving Others at the Expense of Self: The Relationship between Nonprofit CEO Compensation and Performance in Trade and Professional AssociationsMarina Saitgalina0Andrew A. Bennett1Christopher S. Reina2Joseph E. Coombs3Old Dominion UniversityOld Dominion UniversityVirginia Commonwealth UniversityVirginia Commonwealth UniversityThis paper investigates the organizational importance of relative CEO compensation in trade associations and professional societies. It is known that there is variation in how much pay is tied to performance in different subcategories of nonprofit organizations. However, instead of looking at how performance affects pay, we investigate how CEO compensation affects organization performance when CEOs are aware of their peer compensation and are able to influence their own. We hypothesized that CEOs who knowingly earn less will be associated with both greater financial and nonfinancial organizational performance. This altruistic perspective draws on theories from leadership and psychology rather than the more typical agency perspective and focuses on the alignment between CEO and stakeholders in a nonprofit setting. We find strong support for the relationship between lower relative CEO compensation and organization performance, while results for the moderating effect of organizational size are mixed.http://www.jpna.org/index.php/jpna/article/view/135Nonprofit OrganizationsNonprofit ManagementExecutive CompensationCEO Compensation |
| spellingShingle | Marina Saitgalina Andrew A. Bennett Christopher S. Reina Joseph E. Coombs Serving Others at the Expense of Self: The Relationship between Nonprofit CEO Compensation and Performance in Trade and Professional Associations Journal of Public and Nonprofit Affairs Nonprofit Organizations Nonprofit Management Executive Compensation CEO Compensation |
| title | Serving Others at the Expense of Self: The Relationship between Nonprofit CEO Compensation and Performance in Trade and Professional Associations |
| title_full | Serving Others at the Expense of Self: The Relationship between Nonprofit CEO Compensation and Performance in Trade and Professional Associations |
| title_fullStr | Serving Others at the Expense of Self: The Relationship between Nonprofit CEO Compensation and Performance in Trade and Professional Associations |
| title_full_unstemmed | Serving Others at the Expense of Self: The Relationship between Nonprofit CEO Compensation and Performance in Trade and Professional Associations |
| title_short | Serving Others at the Expense of Self: The Relationship between Nonprofit CEO Compensation and Performance in Trade and Professional Associations |
| title_sort | serving others at the expense of self the relationship between nonprofit ceo compensation and performance in trade and professional associations |
| topic | Nonprofit Organizations Nonprofit Management Executive Compensation CEO Compensation |
| url | http://www.jpna.org/index.php/jpna/article/view/135 |
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