Revised regulations under Executive Order 38, which was signed by Governor Andrew M. Cuomo on January 6, 2012, generally limit the maximum compensation allowed for executives at State-funded organizations.
Compensation Committees will need to consider the applicability of and potential impact on their organizations of new requirements that provide:
- Limited Use of State-authorized Payments for Compensation Costs: At least 75% of State-authorized payments (increasing annually by 5% to 85% in 2015) must be used to provide direct care or services, rather than to cover administrative costs such as compensation for employees not providing direct services; and
- A $199,000 Annual Compensation Cap: State-funded administrative executive compensation for a “covered executive” at a “covered provider” cannot exceed $199,000.