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Great nonprofit leadership requires better compensation

The typical humanitarian organization sets executive (and staff) compensation by sampling other organizations of similar size (as measured by annual budget) and then matching what they find. It wouldn’t occur to most of them to do it any other way. This is a terrific practice if you have no significant growth aspirations for the organization. It’s also is a terrific paradigm for keeping social conditions the same for a very long time. If we want social change to occur at the pace of molasses, we needn’t change a thing. We have a system that runs at that precise speed. It reinforces stasis.

Dan Pallotta

Full Story: http://blogs.hbr.org/pallotta/2010/01/aspirational-compensation.html

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