E-study | Created: 12/01/2015

Executive Director Compensation: How much pay is too much?

At the beginning of the Great Recession, the $1.2 million compensation package paid to the United Way of Central Carolinas president, Gloria Pace King, plunged the locally managed charity into a media and public firestorm, just as the annual fund drive started. This e-case highlights the impact of leadership styles and relationships on the proper operations of a major nonprofit. The lack of a strategically defined compensation philosophy in this e-case provides an example of a human resource system that must improve accountability and enhance public trust. This e-case also poses questions regarding when self-interest and the need for transactional transparency creates an ethical dilemma. Image by Zack McCarthy: https://www.flickr.com/photos/zack-attack/399240900

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