ACR NEWSLETTER

State Alert: Massachusetts Board & Executive Compensation

On Thursday, May 26, 2011, the Massachusetts Senate passed an amendment as part of the Senate budget to prohibit public charities from providing board compensation without prior approval from the state Attorney General.  The amendment also provides that the AG may review executive compensation and, if the AG does a review, must report findings to the legislature.  This budget measure did not survive conference committee negotiations.  Nonetheless, it remains a priority of the state attorney general. The provision on board compensation is similar to a bill sponsored by Senator Mark Montigny and Representative Martha Walz earlier in the session.

The Senate bill (S. 824 and companion S. 825) are currently under consideration by the legislature.

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Mass. Nonprofit Board Compensation & Executive Pay Under the Gun

Consider this…

Here’s something that has been flying under the radar in Massachusetts that could be of great concern to some in the foundation community and beyond.

First, consider that the definition of a public charity in Massachusetts is very broad – indeed it draws in private foundations as well as health insurers. Second, consider that Massachusetts is leaving no stone unturned in trying to tamp down health care costs.  Combine that with a nonprofit health insurance company in Massachusetts where the Board of Directors is being paid as much as $90,000 a year and an ousted nonprofit health insurance executive is receiving $11 million in severance, and you’ve got a recipe for policy trouble.

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