/24-7PressRelease/ - HARRISBURG, PA - May 14, 2007 - This publication is a study of chief executive compensation in the North East Region and is the only comprehensive, region/industry-specific study of its kind.
The purpose of this study is (1) to provide 501(c)(3) organizations with reliable, regional market data that can be used to determine CEO compensation reflective of market rates; (2) to help CEOs and Boards comply with IRS and other applicable laws and regulations; and (3) to assist organizations in attracting and retaining qualified, experienced chief executives.
Data used in the study is derived entirely from mandatory filings of the IRS Form 990; the study is not based on voluntary surveys. The 2007 study uses the IRS 990s from FY 2004 - the most current complete data available through GuideStar/National Center for Charitable Statistics. 2004 data is adjusted to project compensation for 2007 according to the Home Health Agency Market Basket Index.
IRS regulations require not-for-profit Boards (or an authorized body) to be reasonable when setting a CEO's compensation. Consideration must be given to whether or not the compensation paid is the amount ordinarily paid for like services under like circumstances. The IRS presumes that compensation is reasonable if certain conditions are met, including whether or not current compensation data was used by an authorized body prior to determining compensation (each time compensation is determined, which is usually annually) and whether the compensation survey used was compiled by an independent, reputable firm having knowledge and expertise in the same industry as the applicable tax-exempt organization. PAR's 2007 CEO Compensation Study meets both of these parameters.
In addition to the compliance reason, there is a second reason why this study was undertaken. Not-for-profit organizations are facing a major transition as the baby boomer generation that typically leads this sector is beginning to retire. Not-for-profit organizations are compelled to balance compliance with IRS expectations around reasonable compensation and the need to set compensation at levels that are sufficient to attract the leadership that is vital to the health of this service sector. Knowing the compensation market helps Boards achieve this necessary balance with confidence.
For details on purchasing the study, you can visit PAR's website at http://www.par.net or contact the PAR office at 717-236-2374.
PAR is a 501(c)(3) organization dedicated to improving the quality of supports and services provided to people living with autism and individuals with intellectual disabilities. As an educational organization, PAR provides valid, reliable research and information as a service to its members and the community at large. For more information, visit http://www.par.net.
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