A Second Look at Salaries

A glimpse at associations that independently review CEO or key employee compensation.

The revised Form 990 includes a nudge to associations to take a closer look at how they pay their leaders: It asks whether the compensation for CEOs, key employees, and officers has been independently reviewed. Whether that review is done by an internal committee or external auditor, the goal is to ensure that compensation is in line with industry benchmarks.

So how many associations have that review performed? Only about half do it for CEOs, and less than half do it for other organization leaders, according to the ASAE Foundation's Association 990 database, which tracks organizations that report a minimum of $200 in membership dues and at least one paid employee. Though most associations don't conduct a review for officers or key employees, a slight majority (55 percent) of associations with 30 or more staff persons do. For more information on the Association 990 database, visit www.asaefoundation.org.

Does your organization independently review CEO compensation?

Yes:

54%

No:

46%

Does your organization independently review officer or key employee compensation?

Yes:

42%

No:

58%