Employment, Labor & Benefits Advisory: State of New York Forms Task Force Targeting Excessive Compensation at Nonprofits
9/9/2011
Excessive compensation worries are no longer just for publicly traded companies. New York Governor Andrew Cuomo’s newly formed Task Force on Not-For-Profit Entities will be reviewing the compensation levels at nonprofits that have received funds from the state. The Task Force on Not-For-Profit Entities has already begun issuing data requests to several boards of directors. Nonprofits in New York (and other states) should take steps now to safeguard their organizations against adverse actions. Large and mid-sized not-for-profits should also seek counsel about best practices for documenting compensations decisions as well as ways to defend such decisions as appropriate.
