Massachusetts May Introduce Non-Profit Executive Pay Cap Legislation

Non-profit executive compensation has been under increased scrutiny in Massachusetts over the past several years, especially at some of the state's largest non-profit hospitals and health systems, and new legislation to limit non-profit pay may roll out in January, according to a Sentinel and Enterprise report.

State Sen. Mark Montigny (D-New Bedford) said he plans to propose a bill next month that would cap the compensation of non-profit organization executives at $500,000. However, some non-profits could receive a waiver on the cap if they can prove their executives deserve more than that total, according to the report.

A similar measure was recently enacted across the country. In November, voters in California approved a ballot measure to cap the compensation of executives at El Camino Hospital in Mountain View, Calif., to no more than twice the salary of the state's governor, which is roughly $330,000.

More Articles on Hospital Executive Compensation:

El Camino Hospital in California Spends $149k to Defeat Executive Pay Ballot Measure
New-Era Executive Compensation: The Impacts of Dodd-Frank's "Say-on-Pay" for Hospitals
NY Gov. Andrew Cuomo Proposes $199k Cap on Non-Profit Executive Pay

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