Executive Compensation
Partnering with NY nonprofits to comply with EO 38
Keeping compensation competitive and in compliance with New York laws.
New York EO 38
New York Executive Order 38 establishes limits on executive compensation and administrative expense for those entities that receive state funds either directly or indirectly. This order applies to any nonprofit that receive an average of more than $500,000 a year from one of the New York state agencies, that also constitutes 30% or more of the organization’s total state funding. In general, an executive’s total compensation will be limited to $199,000 paid out of state funds.
An organization can pay compensation in excess of $199,000 only if they:
- Obtain a waiver from the state.
- The compensation is equal to or less than the 75th percentile of compensation paid to comparable executives in similar organizations.
- The compensation was reviewed and approved by the Board of Directors.
Our Approach
JER HR Group is a specialist in New York EO 38 analysis. Having conducted hundreds of reviews for our New York clients, we have a defined process that ensures an in-depth analysis with reliability and transparency.
Our NY Executive Order 38 review process includes:
- Assistance in identifying “covered executives” who may be subject to EO 38.
- Determination of special skills, abilities and unique qualifications that may affect how a covered executive’s compensation should be positioned in relation to the competitive market.
- Identification of peer organizations that are comparable to the client organization to ensure compensation decisions reflect the competitive market and comply with NYS regulatory requirements.
- Conducting an in-depth comparability study to determine if the executive compensation provided to a covered executive exceeds the statutory limit, and if so, whether it meets safe harbor provisions.
- Providing information to assist the organization in completing the application for waiver on the executive compensation limit, if needed.
Resources
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JER HR Group LLC acquires Willis HR LLC, a HR Consulting firm. JER HR Group and Willis HR jointly announce JER HR Group’s acquisition of Willis HR in a private transaction. Willis HR is a leading HR consulting …
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