NY state to scrutinize pay at not-for-profits

Reuters News
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Posted: Aug 25, 2011 2:29 PM
NY state to scrutinize pay at not-for-profits

NEW YORK (Reuters) - Pay packages awarded to board members and executives of not-for-profit organizations in New York, which are partly funded by the state's taxpayers, will be scrutinized by a task force, the state's Department of Financial Services said on Thursday.

Hospitals and other health outfits are among the organizations that will be reviewed.

The task force also will ask "the organizations" boards to explain the basis for their not-for-profit status and whether it is appropriate to recoup any excessive compensation," Benjamin Lawsky, superintendent of the Department of Financial Services. Lawsky will chair the task force.

Democratic Governor Andrew Cuomo set up the task force in response to newspaper stories that revealed "startlingly excessive salaries and compensation packages for executives at not-for-profits that depended on state Medicaid," the statement said.

(Reporting by Joan Gralla; Editing by Leslie Adler)