In addition to a base salary that can be several hundred thousand dollars, Chief Executive Officers (CEOs) of major charities enjoy generous perquisites. Some argue that such salaries and perquisites are needed to attract and retain top-notch executive talent. Others argue that such salaries are unseemly in charitable organizations, particularly when their stated goal is to cater to the poor and the downtrodden.

Required:

a. Browse to the Web site of a charity such as the United Way (www.national.unitedway.

org) and identify its goals.

b. Do you think a charity's CEO and other top executives believe in the charity's goals? If so, how can the CEO and top executives justify receiving "excessive" compensation, as is often alleged?