There’s an interesting article from the Billings Gazette via Benefitslink.com–“Blue Cross exec defends salary, perks.” What’s being defended? A compensation package of $1.4 million with $525,000 in pay and the rest in payments to cover a retirement plan, as well as a company car, a $2,500 personal dining allowance, and pet-sitting perks, to mention a few. According to the article, what also didn’t sit well with employees of the non-profit company was that the company instituted a new version of a health insurance plan which the articles states evoked a “firestorm of criticism” and was designed to pass more of the expense on to employees. The health plan was rescinded and a new one put in place, according to the article. However, the article notes that the executive is apparently now in negotiations with the board of directors to reduce his very “rich” retirement benefits.
Broc Romanek has comments here: “Pay Madness in Montana.“
(Recent reports indicate that executive pay for non-profits is generally being scrutinized by the IRS which has launched a “comprehensive enforcement project to explore the seemingly high compensation paid to individuals associated with some exempt organizations.” Read about it here.)