Compensation Consultant Opines on Allegedly Excessive CEO Salary


Compensation Expert WitnessThis case stems from a wrongful death suit, where the Chief Executive Officer of an urban renewal foundation  in South Dakota contracted terminal cancer after being exposed to toxic materials in a construction site. It has been already proven that the CEO was exposed to these materials, which in turn was directly related to her cancer diagnosis. However, there is contention over the CEO’s salary, which is over eight hundred thousand a year. While one side contends that the damages in this case ought to be lessened since the CEO has not been confirmed as free of personal inurement by the IRS, an expert in compensation and salary was needed to discuss whether this CEO’s compensation was reasonable based on industry standards and the success of her foundation.

Question(s) For Expert Witness

  • 1. Are you able to comment on the appropriateness of the CEO’s salary?
  • 2. Have you ever reviewed a similar case?

Expert Witness Response E-078286

I have been an expert witness on multiple employment cases; more importantly, I am a compensation consultant to dozens of nonprofit organizations and foundations, providing creative solutions to complicated problems arising in CEO compensation cases. In my view, only the IRS can really dispute whether or not compensation is fair and reasonable.I could conduct a comparative study to view this organization’s compensation model relative to those of organizations of comparable sizes, but I do not believe this would be entirely necessary.

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