A $7,000,000 salary - nice work if you can get it.
How's that possible? A multitude of reasons, but mostly a pliable board of directors, manipulated by the CEO.
In fact it happens all the time - as we speak, so to say, at all the big colleges. One hand washes the other. All the insiders line their pockets, the intended recipients get pennies.
Okay fine, he didn't steal per se, but he sure as heck criminally abused his fiduciary duty - giving his family members exorbitant salaries and real responsibilities. Just like at most NPOs.
A far higher standard is necessary. Oughta be a law that non-profits undergo full audits by state and federal governments agencies, not by public audtors.
Would like to see comparative data of NPO salaries presented (sorta being done, but...), say NPO A compared to NPO B, C, D, based on balance sheet, that BOD member affiliations with suppliers and other NPO's and especially public companies be noted in all filings. Some do, the vast majority do not. Lots of holes in the auditing.
Read the NYT story, the abuses at Kincock Group go way back.
Only in New Jersey? Naaa... Worcester, MA too.
