Not-for-profit executive compensation: Significant health industry changes

Author: Andrew B. Roth Publication | January 25, 2016
Published in: Bloomberg BNA: Antitrust & Trade Regulation Report

The legal landscape is rapidly evolving in the area of executive compensation paid by New York not-for-profit corporations that receive state funds.

Within the past three months, three court decisions were issued, two from the Appellate Division, Second Department, and one from the Supreme Court, Albany County, addressing New York State Department of Health Regulations (DOH Regulations) which set limits on administrative expenses and executive compensation.1 They were established under Governor Andrew Cuomo’s Executive Order No. 38.2 This article analyzes those court decisions, and what they mean for the future of executive compensation regulation and reform for New York not-for-profit corporations.

Executive Order, Regulations

In January 2012, Governor Cuomo issued his Executive Order, calling upon New York state agencies to promulgate regulations limiting executive compensation for New York not-for-profit organizations that receive state funds, such as Medicaid. Since then, 13 state agencies, including DOH, enacted regulations implementing the Executive Order.

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Andrew B. Roth

Andrew B. Roth

New York