Date of Conferral

10-8-2024

Degree

Doctor of Business Administration (D.B.A.)

School

Management

Advisor

Charlie Shao

Abstract

Excessive chief executive offer (CEO) benefits in nonprofit health care organizations can raise ethical concerns when donor funds are diverted from mission-driven programs, potentially diminishing trust among donors and the community. Business leaders need to understand that CEO compensation is a leading indicator of donor investment. Grounded in agency theory, the purpose of this quantitative correlational study was to examine the relationship between CEO compensation, firm performance, and donor contributions. Participants in the study consisted of 110 nonprofit acute care hospitals located in the Southeastern United States. Data were collected from the American Hospital Association’s Annual Survey, National Center for Charitable Statistics, and GuidesStar Pro database. The results of the multiple regression analysis indicated that the model could not statistically significantly predict the level of donor contributions, F(2, 107) = 1.252, p > .05, R2 = .122. CEO compensation was the only significant predictor (p = .002, beta = .138). A key recommendation for nonprofit hospital administrators is to use this research when evaluating CEO compensation packages to ensure they include monetary incentives that encourage CEOs to strive to meet the organization’s goals and better manage the organization’s charitable contributions. The implications for positive social change include the potential to provide a greater understanding of how monetary incentives can increase an individual’s motivation toward performance improvements in charitable services, a primary goal of nonprofit health care organizations, and the efficient allocation of charitable resources from outside donors.

Download

Share

 
COinS