Highlights of the 2002 GuideStar Nonprofit Compensation Report, page 3

Geography

There were sometimes large regional differences in CEO compensation. Salaries paid to CEOs of Mideast and New England nonprofits were highest for every budget size, with compensation in the Plains and Rocky Mountains regions typically the lowest. For example, the median compensation of CEOs at Mideast organizations with budgets of greater than $5 million was 25.7 percent higher than that of CEOs in the Plains region, and 18.1 percent higher than that of CEOs in the Rocky Mountains region.

CEO Compensation by Region and Budget Size
Region $500,000 or Less $500,000 - $1,000,000 $1,000,000 - $5,000,000 Greater Than $5,000,000
Far West $38,000 $56,523 $73,909 $125,000
Great Lakes $36,712 $53,759 $72,059 $123,307
Mideast $39,867 $60,000 $81,660 $138,817
New England $39,524 $57,834 $78,293 $127,308
Plains $35,842 $51,923 $69,409 $110,432
Rocky Mountains $34,805 $51,695 $70,632 $117,595
Southeast $36,044 $53,625 $71,492 $121,329
Southwest $36,000 $51,864 $69,150 $120,789
Far West: AK, CA, HI, NV, OR, WA Great Lakes: IL, IN, MI, OH, WI Mideast: DE, MD, NJ, NY, PA, DC New England: CT, ME, MA, NH, RI, VT Plains: IA, KS, MN, MO, NE, ND, SD Rocky Mountains: CO, ID, MT, UT, WY Southeast: AL, AR, FL, GA, KY, LA, MS, NC, SC, TN, VA, WV Southwest: AZ, NM, OK, TX
Source: 2002 GuideStar Nonprofit Compensation Report

These figures do not necessarily mean that CEOs in the Plains or Rocky Mountains regions were underpaid. Some of the most expensive places to live in the United States are in the Mideast and New England regions. For example, 46.3 percent of the 13,599 CEOs in the Mideast work in New York, Philadelphia, or Washington, D.C., all of which have a cost of living well above the national average. In contrast, 46.0 percent of the 2,316 CEOs in the Rocky Mountains region work in Denver, Colorado Springs, or Salt Lake City, where the cost of living is closer to the national average.

Mideast and New England CEOs usually didn't fare as well as those in less expensive areas when salaries were adjusted to take cost of living into account. CEOs in the New York City Metropolitan Statistical Area, whose raw median compensation exceeds all areas in the nation other than Washington, D.C., have the lowest median compensation when adjusted for cost of living. Conversely, CEOs in some areas with a lower raw median compensation do comparatively well when cost of living factors are considered. These differences can be quite dramatic. For example, the median compensation for CEOs of Denver nonprofits with budgets between $1 million and $5 million was 12.8 percent less than the median in New York City. When adjusted for cost of living, however, the median compensation in Denver was 69.9 percent higher.

Median CEO Compensation for Selected Metropolitan Areas
 

Budget Size
$1,000,000-$5,000,000

Budget Size
Greater Than $5,000,000
MSA Raw Median Adjusted for Cost of Living* Raw Median Adjusted for Cost of Living*
Baltimore, MD $79,383 $79,862 $138,227 $139,061
Boston, MA $86,715 $68,065 $152,182 $119,452
Cleveland, OH $76,430 $74,493 $150,377 $146,566
Denver, CO $80,000 $78,355 $137,592 $134,762
Detroit, MI $74,375 $65,994 $124,959 $110,878
Los Angeles, CA $80,901 $71,784 $148,414 $131,689
New York, NY $91,748 $46,105 $159,663 $80,233
Phoenix, AZ $75,430 $74,831 $117,441 $116,509
San Francisco, CA $79,414 $52,453 $133,746 $88,339
Seattle, WA $71,754 $63,725 $122,606 $108,886
St. Louis, MO $75,756 $78,995 $144,353 $150,525
Washington, DC $102,629 $85,311 $161,755 $134,460
*Cost of living data from Dowden & Co.
Source: 2002 GuideStar Nonprofit Compensation Report

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Chuck McLean, August 2002
© 2002, Philanthropic Research, Inc.