Individuals can profit plenty at nonprofits. Blue Shield, the 77-year-old nonprofit California health insurer proved that yesterday, when it unveiled the salaries of its top executives in response to criticisms over its lack of transparency.
At the very top of the organization, CEO Paul Markovich made $3.5 million last year. Just over $1 million was base salary, while the rest amounted to incentive-based bonuses. Records showed he started at $2.5 million in 2013 and saw his pay rise $500,000 in each of the last two years.
The state of California forced the group's hand, first through a 2010 law requiring nonprofits to submit executive compensation data and then in 2015 when its tax board stripped Blue Shield of its tax-exempt status (at least relating to state income taxes) after an audit.
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