Deferred Compensation and NPO Performance

• In Event: 2.01 Nonprofit Research Concurrent Session: NPO Performance

Abstract

We examine the relation between the deferred compensation of Nonprofit Organizations (NPO) directors and officers and NPO performance. Specifically, we examine how deferred compensation is associated with the organization’s profitability, as well as whether and how deferred compensation enhances the stability of the organization. Using large-sample NPO data, we provide empirical evidence that deferred compensation enhances the stability of the organizations. Our study is the first to examine deferred compensation in the nonprofit sector, and sheds light on how compensation structure elicits certain behaviors from the NPO managers.

Authors

• Steven Balsam, Temple University

• Min Xu, Temple University