I was recently filmed for a documentary (which isn't showing until next month) in which I was asked the same question at one point. I had just been noting that a major problem in the Jewish community is the tremendous waste that seems to take place within Jewish organizations, as organizations dedicated to carrying out certain tasks end up spending very large percentages of their incoming contributions on overhead. I was a little perturbed by the question, but my answer was simple: I have no idea, as there simply isn't enough transparency.
On the face of it, however, while there are certainly institutions where people at the higher levels are overpaid in comparison to their duties and what they bring to the institution, I would tend to agree with Weiss that by and large, Jewish organizational CEOs (like most CEOs) are not overpaid. He sums it up well in the opening paragraph before dissecting some of the broader points:
This is suggestive of a general problem with lay-personomics, whereby people who make lots of money to do their jobs seem to be hated for that reason alone, and those who make less are seen as entitled to a specific slice of CEOs’ pie.More importantly, and perhaps most importantly, a Jewish organization's CEO is typically a talented individual who has a pick of many jobs which he or she could otherwise be doing. Suggesting that the CEO cut back irrationally on his or her own salary to save what seems to be an unnecessary position is just foolish; not only would you be promoting further inefficiency in a time where the money could be better used elsewhere (Weiss suggests the charity work many exist for), but you're driving away a talented individual who helps make the organization succeed in the first place.
Are there administrators who are overpaid? Yes, there probably are - but because of their lack of success or because their pay is not commensurate with their responsibilities and duties in the first place. To get - and retain - quality administrators, however, Jewish organizations must be prepared to pay them in line with what they could expect to receive elsewhere, or expect to lose those individuals to other fields.
In general, a good jewish organization CEO should be paid what a business CEO is paid while keeping in mind the market. So if you're a good CEO for a grocery chain you should get paid more than a CEO of a single supermarket. So that means a small jewish organizaton's CEO should be paid appropriately. It's fair because if you can get talented people to do a great job in hte jewish community everyone benefits.
ReplyDeleteThe issue of course is are they doing a GOOD job? An organization existance doesn't mean the job is well done the CEO may be slowly driving it to the ground. this is where transparency and n independent board can help.
But there is one way that a
Jewish organization CEO should be different. He (or she) should be even more diligent to watch where the money is going. That means that he can't take a first class plane trip to Israel on the company's expense card- even if he's going to israel on business he should not fly first class. (Sadly an auditor told me this happens).
SuMMy - Well put all around. Certainly a CEO who is running a horribly inefficient or wasteful organization shouldn't be getting paid much.
ReplyDeletewhat about that in larger jewish communities there are multiple organizations devoted to the same cause. how many different charity organizations exist in the same city, why the overlap?
ReplyDeleteor kiruv, or special needs, or infertility, or rofeh cholim?
why the overlap, why the waste of the communities resources?
Ezzie, exactly but note that a "real" ceo can get away with taking first class flights (although he shouldn't). a jewish org ceo should not.
ReplyDeleteHarry, you're right and the best CEO should run that organization.
the main question is who decides the waste. and who gets the head job. I know i dont want that job! lol
ReplyDeletethe rabbonim mostly have interests in most organizations, especially if they sit on its rabbinical council, etc.
Harry - Agreed. I've never understood why there is so much overlap, and with the initial monies of each going to overhead, that may be the biggest waste of all.
ReplyDeleteSuMMy - Agreed.
Harry - If the organizations won't do it themselves, then people need to with their support.
its not just a matter of their support, its in some places a matter of if we spread the wealth between diff organizations they will both die, but if we give it to one, only one will.
ReplyDeleteand really the time to prioritize our giving habits is now.
That's what I mean.
ReplyDeleteEzz..thre is overlap in Orthodox orgs, B/C the real mission is to bring jobs and kavod to otherwise unemployable rebbeim
ReplyDeleteDAG - Many organizations have few if any Rabbonim.
ReplyDeleteI thought you'd appreciate the post in general.
Charity Navigator ranks charities by percent of overhead, etc. Very useful. I don't give much to specifically Jewish organizations so I can't say how good the coverage is, but it's worth a look.
ReplyDeleteInteresting. Someone in our community anonymously mailed a copy of one sheet (the one with the Rabbis salaries on it) from the annual shul budget to everyone (well, at least to me). Apparently they were very upset at the large raises being given in a year without inflation, and in which so many are doing without or with less (job losses, salary cuts, foreclosures, etc).
ReplyDeleteJA - It's hard to find smaller charities on there. Interestingly some of the biggest Jewish organizations get very good ratings on there: Agudath Israel especially.
ReplyDeleteAnon - The Jewish view of inflation unfortunately rarely matches up with reality. Feel free to e-mail me.