Submitted by thanxhaveagood1 t3_z3m4h9 in pittsburgh
FUCKUPMC t1_ixmthd8 wrote
Reply to comment by trucorsair in Pittsburgh's largest nonprofit is concerned that its profits are down by thanxhaveagood1
That is the first thing I think of. I think of UPMC abusing the federal tax code to not pay taxes all the while pumping as much of their profit that they can to the top level executives by way of obscene salaries.
trucorsair t1_ixn4qh7 wrote
Ask your state regulator and legislators why they allow it…something something free market, something freedom, something something low regulation
FUCKUPMC t1_ixnmiil wrote
Many have tried to take them down. It needs to be changed at the national level. But we all know that will never happen.
28carslater t1_ixnvodv wrote
That's how most large non-profits operate.
FUCKUPMC t1_ixo9dbf wrote
Yeah and they mostly all suck too. What's your point?
asr t1_ixozmz6 wrote
A: Those people with the high salaries still pay income tax.
B: EVERY company gets to write off salaries (all salaries) before paying corporate tax. So there's nothing different here.
pAul2437 t1_ixmwfte wrote
Non profit Salaries are highly regulated. They are paid market rate
FUCKUPMC t1_ixmy9bo wrote
lol
mmphoto412 t1_ixmyzch wrote
Of course it’s pAul with a dumb take
pAul2437 t1_ixn0gpk wrote
mmphoto412 t1_ixn11os wrote
That refers to IRS guidelines in disclosure of executive salaries and disclosure of how they determine what they should be compensated.
At best it’s a transparency measure.
Calling there salaries highly regulated based on what you provided is very misleading.
Also, nothing in the information you provided says they are required to be paid market rate, and not more.
pAul2437 t1_ixn317q wrote
“the IRS conducts a compensation review when it examines the 990 forms nonprofits have to file annually. In part II of Schedule J, nonprofits must disclose various types of compensation. The organization must also specify how compensation was determined:
- Compensation committee,
- Independent compensation consultant,
- Form 900 of other organizations,
- Written employment contract,
- Compensation survey or study, and/ or
- Approval by the board or compensation committee. Organizations which report excess benefit transactions must provide further detailed information on the nature of the excess benefit transaction under Form 990 Schedule L.”
“Funders, regulators, and the IRS have also taken action to curtail high salaries in the nonprofit sector by instituting numerous penalties and accountability measures. As a result, nonprofits must approach executive compensation with a strong focus on compliance.”
https://capacityexperts.com/nonprofit-excessive-executive-compensation/
mmphoto412 t1_ixn701m wrote
Those are all transparency measures, and measures to prevent one or a few people from making compensation changes unilaterally.
Nothing in there would prevent what us normies would consider “excessive compensation “
pAul2437 t1_ixn8b1d wrote
your definition of excessive compensation is made up and based on your feelings. Which is fine
Those are literally IRS guidelines and there are penalties for noncompliance
mmphoto412 t1_ixndy6b wrote
Cute…
There nothing in those guidelines to prevent excessive compensation. It’s about have an established process to set executive compensation.
Btw the “maket rate” you keep referring to is set by themselves. There are probably only dozen or so health companies at the same size.
Btw, a guideline is suggestion to on how to do something. It’s not a law, it’s not a binding regulation, it’s not enforceable
pAul2437 t1_ixngiax wrote
“Funders, regulators, and the IRS have also taken action to curtail high salaries in the nonprofit sector by instituting numerous penalties and accountability measures. As a result, nonprofits must approach executive compensation with a strong focus on compliance.”
tesla3by3 t1_ixnbux1 wrote
And that market rate is set by the nonprofits themselves.
Non profit salaries have to follow IRS guidelines. Far from "highly regulated'.
pAul2437 t1_ixnd0vr wrote
The rate is based on comparable sized and missioned companies
What is more regulation than IRS code?
tesla3by3 t1_ixnf46i wrote
There are no hard and fast rules. The IRS issues guidelines, and uses words like "reasonable" and "comparable". Highly regulated would be hard and fast rules- things like X% of median, etc
You are correct about mission and size, but there is a lot more to it than that. NP's are also competing for employees with for profit companies. That's why compensation can be base on an employees salary history as well.
pAul2437 t1_ixnh056 wrote
So do you think upmc execs are paid higher than market to avoid showing profit like the op said?
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