RKoreto wrote:

- quote -

How will the judgment of gross incompetence be determined?
There are non-profits and non-profits. Would your criteria
differ if the non-profit were a public charity? A private
business association?

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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RKoreto wrote:

- quote -

This is about Richard Grasso the former CEO of the NYSE and
his $187.5 million departure compensation package which is
now the subject of a lawsuit by the New York State Attorney
General.

It is an overly broad question and very few people here
are auditors or are willing to admit to being an auditor.
The tax aspect (which is why I posted it in the first place)
is that Congress has previously taken action within the IRC
on windfall profits and green-mail. Excessive compensation
and golden parachutes, if not already in the code, should be
looked into with great scrutiny.

Let's get real - Grasso is making more in retirement than
George Steinbrenner is paying Alex Rodriguez (A-Rod) for
playing for the Yankees. My definition of outrageous is
"It's more than Steinbrenner would pay".

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For a possible article (although no one will be quoted
without asking permission later)

The whole Grasso compensation issue has me wondering about
payment of employees of nonprofits generally.

When auditing a nonprofit, can, or should, a firm comment if
it is felt employees are overpaid relative to both their job
duties and to the size of the entity? Could the board be
held liable? I'm not talking about outright fraud--more in
the area of gross incompetence.

Thanks!

Richard Koreto
Editor in Chief
Advising Boomers Magazine
rkoreto[at]nuco.com

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