Question

Video Clip: Komen CEO's salary draws fire

Financial reports reveal Nancy Brinker, founder and CEO of the Susan G. Komen foundation, received a 64 percent raise for a total pay package of $684,000, and despite Brinker announcing she would be stepping aside 10 months ago, she is still CEO of the charity. NBC's Lisa Myers reports.

By Lisa Myers and Talesha Reynolds, NBC News

When the Susan G. Komen Foundation announced last week that it was canceling half of its 3-Day races next year, the charity blamed the economy. But it also acknowledged that its decision to stop providing funds to Planned Parenthood was a factor. In early 2012, Komen announced it was pulling its grants for breast-cancer screenings from Planned Parenthood, drawing an immediate backlash from Komen supporters and abortion rights advocates. Komen says the raise came in November 2010, prior to last year’s controversy. Ken Berger, president and CEO of Charity Navigator, which evaluates and rates charities, called Brinker’s salary “extremely high.”

“Our CEO pay reflects the comprehensive and global nature of our work,” she said. “We fund research; we grant to thousands of community health and breast cancer patient support programs; we advocate for access to cancer care through our public policy programs, and we're active in breast cancer programs in 30 countries, with an emphasis on serving women in low- and middle-resources nations.” Stacey Tillman of Sandusky, Ohio donated a few hundred dollars a year to Komen, but she stopped after the Planned Parenthood announcement. “It just seemed a betrayal of what I wanted them to represent, denying those women that use Planned Parenthood from breast cancer screening and mammography so it angered me a great deal,” Tillman said. The fact that Brinker still heads the organization further upsets her. “It just all seems very misleading. They will tell the public what they think they want to hear, but I don't feel they're being honest.” Rader, also speaking on Brinker’s behalf, says the search for Brinker’s replacement is continuing. “We said last August that she would step out of the CEO job when a new CEO or senior leader is named. That search is continuing, so she remains in the CEO position, just as we said she would,” Rader told NBC News. The Susan G. Komen Foundation, the nation’s largest breast cancer charity, was founded in 1982. Since its first race of 800 people in Dallas, the series grew to 138 races with 1.7 million participants around the world. In 30 years, the charity says it has raised more than $2 billion for research and community programs. But the recent drop in race participation has hurt the bottom line. The announcement of the race cancellation in seven cities around the country, posted on the 3-Day Facebook page, said the decline in participation levels “made it difficult to sustain an event of this magnitude in 14 cities.”

For the first time in five years, Dr. Sandra Swain did not receive a Komen grant for a program to help low-income women complete breast-cancer treatment in the nation’s capital. Swain, who is the medical director of Washington Cancer Institute at MedStar Washington Hospital Center, wasn’t given a reason why she did not get the grant, but she says Komen’s decreased revenue could have played a part. “I think the numbers speak for themselves,” she said. “The fact that less people are involved in the races, and they're donating money to other sources, I think that really tells a lot. I'm really hoping that people will understand how important that these funds were for the breast cancer patients that Komen provided.” Swain hopes Komen can come back from its current troubles, but Bergen of Charity Navigator suggests it may get worse before it gets better. “When donors realize that (Brinker’s) salary is so high and so out of comparison to what it normally would be, I am certain there are going to be some donors who are no longer going to support this organization because they have lost trust in its decision-making.”

Required: Is it appropriate for non-profit CEOs and top management teams to receive hefty compensation and perks? Why or why not? Write 250 words.

Please don't copy from anywhere. Please write in your own words and write appropriate answers. Thank You!

Answer 1

Explanation:

Everyone want to be in top list whether its CEO’s or top management, non profit organizations also need talents that run them efficiently and in very well manner. There are lots of funding and programs than need to be effective since you are going to organize events that will change the life of people of society and it needs to be in top tier. Social programs shall be run effectively and in organized manner that people who are funding them satisfy that their money is being used in efficient manner and it being utilized to help society and need people. Now we talk that if the company is non-profit and everyone wants to work for some noble cause than why they want higher wages for their service. The logic is that these CEO’s are work for their reputation and career they want to make a mark in society as well in corporate world, who would be the person who don’t want to dedicate his life and his whole time to organize who would not take due care of him as well as don’t put him on top spot in earning. In fact, in order to attract the top talent from market you need to give hefty pay to these teams, these young talents bring competencies and innovation and effectiveness with them which will not come in free. Th cause of non profit is to serve people and society but to run this program you need such talents that work very hard and very innovatively which do not come cheap or free since it is question of their career and market value.