Caston Caperton, the president of the College Board, the nonprofit organization that owns and administers standardized tests including the SAT, was paid $1.3 million in 2009.
According to an article by Janet Lorin at Bloomberg, Caperton:
has seen his compensation triple since 1999 and now gets more than the head of the American Red Cross, which has more than five times the revenue.
College Board executive salaries are “very much in line” with the capabilities required to run a complex organization, Peter Kauffmann, a spokesman for the company, said in an e-mail. Caperton’s pay is set by a committee of trustees, which gets outside advice from independent consultants, as does ACT, according to the companies. “The economic reality is that nonprofits, just like for- profit organizations, compete for talent,” Kauffmann said.
Well that would be a good explanation for why Caperton isn’t paid $45,000 a year, or even $300,000 a year.
It seems like a fairly weak explanation for why the former governor of West Virginia now earns more than twice as much as President Obama, more than five times as much as the average college president, and almost twice as much as the chairman of Morgan Stanley.