Massachusetts and New Hampshire have cracked open a new front on the compensation wars, investigating whether pay for directors at non-profit institutions—specifically large healthcare systems—is getting too large, and should be curbed.
Earlier this month, Massachusetts Attorney General Martha Coakley filed legislation that would ban Massachusetts-based public charities, including non-profit health insurers, from paying their directors unless they obtain written approval from the attorney general's office. It would also give the attorney general authority to rescind that approval upon a finding that the compensation paid is more than what is “reasonably necessary.”
Coakley's bill stems from a review of director ...