Should there be a cap on nonprofit executive’s compensation? The Governor of New York thinks so.
A recent Executive Order limits the amount New York State will reimburse for executive compensation to $199,000 per year. According to Governor Cuomo, this is meant to reduce “excessive administrative costs and outsized compensation for  senior executives.”
This conflicts with IRS standards and those in other states that permit nonprofit boards to pay their executives compensation that is fair and reasonable based on fair market standards and competitive job offers.
Look for the Executive Order to be challenged in court. Even so, we expect there will be continued support for limiting nonprofit salaries (e.g., members of Congress have suggested similar legislation be enacted).