Top 10 Highest-Paid Nonprofit CEOs in California

Nonprofit organizations are private, non-governmental entities, typically created to benefit the public or community and further or fulfill a specific mission statement. This makes executive compensation at nonprofits an interesting – albeit at times, contentious – topic. Because nonprofits operate under regulatory guidelines distinct from for-profit entities, CEO compensation at nonprofit organizations is usually influenced by a combination of responsibilities: adhering to the mission, responsible spending, and compliance requirements.  

Factors That Influence Executive Compensation at Nonprofits 

As mentioned, nonprofits operate under a distinct set of principles as opposed to other entities. These principles ultimately impact the decision making behind CEO compensation.  As expected, CEO compensation at nonprofits is complex and dependent on myriad factors, such as the size and scale of the organization, budget requirements, government regulations specific to tax-exempt entities, and arguably most important, a board of directors.  

In short, the board of directors plays a pivotal role in ensuring that CEO compensation aligns fairly with a nonprofit’s mission and overall legal standards. Because nonprofits are typically funded from an array of sources, such as donations from individuals and organizational fundraising, in addition to applying for funding from government entities and other sources, pay transparency, especially at the executive level, is critical. This is where the board of directors, usually compiled of individuals that hold no personal or financial interest in the organization, becomes key in decision making as it pertains to CEO compensation.  

Compensating CEOs at Nonprofits 

Despite misconceptions about executive compensation at nonprofits, it is important that the board of directors determine a reasonable and competitive salary that is proportional to the organizational size and competitive in its sector. A competitive CEO salary is vital to ensuring that a nonprofit can achieve the following goals: 

• Attract and retain top talent 

• Motivate CEOs as they navigate complex issues with experience and expertise 

• Maintain its mission statement through decisive and impactful executive direction 

CEOs are principal figures at nonprofit organizations, which makes fair and competitive executive compensation critical. 

Highest-Paid Nonprofit CEOs in California 

Nonprofit organizations continue to play a necessary role in furthering social causes, as well as member and professional development, and can have missions related to the arts and humanities, education, the environment, health and human services, international affairs, religion, and more. As specific organizations continue to gain traction and flourish, the social optics of ethical executive compensation become all the more relevant. With that said, the chart below highlights the top 10 highest-paid CEOs at nonprofits in the state of California using data reported in 2023.

It is important to remember that figures for nonprofit executive director salaries in California may change over time, reflecting market dynamics, company performance, and industry trends. Stay informed of the latest compensation survey data, powered by ERI SalaryExpert, to ensure your salary plan remains up to date and competitive within your industry.   

For a more detailed breakdown of executive compensation in the nonprofit sector, turn to ERI SalaryExpert’s Nonprofit Comparables Assessor today and take advantage of these features:  

• Review compensation data collected from nonprofit organizations’ IRS Forms 990, 990-EZ, and 990-PF in easy-to-interpret interactive graphs and tables. 

• Generate benchmark reports based on salary data from comparable peers in tax-exempt and/or for-profit organizations.  

• Group peer organizations, including for-profit data, with the detailed compensation comparables needed for a “rebuttable presumption of reasonableness” that protects an exempt organization from the imposition of intermediate sanctions taxes, penalties, and interest by the IRS (IRC 4958). 

• Search, rank, and sort compensation data from comparable organizations by industry subsector, geographic area, date, and size (revenue or assets). 

ERI SalaryExpert’s Assessor Platform is designed to help you customize your executive compensation analysis to confidently grasp how executive salaries compare in your specific industry and make the most accurate data-driven decisions.  

Enjoyed this article? Learn more about top executive compensation in various industries at ERI SalaryExpert, including the top 20 highest-paid CEOs in health care and the top 20 highest-paid CEOs in technology.