276 Human Resources Management for Public and Nonprofi t Organizations
salaries of preschool teachers in the area. The CEO received a salary of
$ 200,000 and a $ 200 a month car allowance. In an attempt to resist com-
plying with the city ’ s living wage ordinance, the CEO sent a letter to the
San Antonio city manager protesting having to pay the living wage of $ 8.75
an hour to its employees (Tedesco, 2004). The San Antonio Star Express took a
closer look at one hundred tax - exempt nonprofi ts that received Head Start
money in 2001. The ten lowest - paid Head Start offi cials made less than an
elementary school principal. The ten highest - paid executives earned sala-
ries that rivaled the U.S. Secretary of Health and Human Services at the
time, who earned $ 171,900 and oversaw a $ 488 billion budget.
The KCMC Child Development Corp. in Kansas City, Missouri,
retained the highest - paid Head Start executive: the CEO earned $ 307,500
in pay and perks. The Kansas City Star reported that Head Start funds were
used to lease a Mercedes sport utility vehicle at $ 600 a month.
The boards of directors approved the contracts. These are egregious
examples, but there does need to be balance between what CEOs get paid
and direct service providers. Living wage laws often lack the support of com-
munity nonprofi ts, and some have refused government money as a result.Comparable Worth
Should sign painters and tree trimmers receive higher wages than emer-
gency room nurses? What about state grain inspectors who are at the same
job evaluation level as administrative secretaries? If you think no, then you
are likely to favor comparable worth as an element to be considered in the
development of compensation systems.
Comparable worth is the idea that each job has an inherent value
or worth that can be compared to different types of positions across the
organization. Jobs of greater inherent value to the organization should
be paid more. Comparable worth has been defi ned as equitable compensa-
tion relationships for jobs that, while not the same, have been evaluated as
equivalent based on the composite skill, effort, responsibility, and working
conditions required. Comparable worth tries to eradicate the pay disparity
between jobs that are traditionally female versus jobs that are traditionally
male. It argues that jobs associated with women tend to be undervalued
and discriminated against in the marketplace — for example, when nurses
are paid less than tree trimmers or clerical employees are paid less than
male - dominated physical plant employees ( Christensen v. State of Iowa , 1977;
Lemons v. City and County of Denver , 1980).