Underpaid & Overworked

The executive director of the United Way Central Carolinas received over $1,000,000 in compensation in 2007, partially to catch up retirement contributions from prior years. Her compensation will level off at approximately $900,000 for the next few years. http://www.bizjournals.com/charlotte/stories/2008/08/25/daily7.html?f=et56&ana=e_du

Given that a United Way Director's primary mission is to raise donations, it may seem fair to compare their salary as a percentage of donations to others in their geographic area. Using this metric Mrs. King's salary actually falls below that of some of her colleagues. So what metric if one such exists is an appropriate compensation factor for those who do not work in the private sector?

Fortunately the metric has already been set by the market, as long as transparent information remains available to supporters. All supporters of the United Way have access to Mrs. Kings salary records and that of the executives of other charities. Donations will come to charities that appear to be good stewards of the charity and are able to keep their administrative burdens low regardless of a single executive's pay. How much you are worth is determined by what others are willing to pay.

Unfortunately the Central Carolina's United Way board has allowed Mrs. King to hijack the fundraising powers of the United Way to manipulate her perceived value to the organization. The business leaders on this board should take a minute to remember what made them successful in business, and employ those tactics when it comes to dealing with Mrs. King and stop paying her like a realtor.