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Board narrows and approves nonprofit executive‑compensation reporting requirement
Summary
After initial votes rejected a broad cap on nonprofit executive pay when city funds are used, the board rescinded that earlier vote and approved a narrowed measure requiring nonprofits that receive city funds to report executives' salaries and the portion paid by city funds to the Controller.
San Francisco — The Board of Supervisors debated a proposal on Nov. 25 to limit use of city funds for nonprofit executive salaries and to require disclosure of compensation. An initial, broader ordinance failed on the floor, 3–8. Sponsors then rescinded that vote and offered a narrowed amendment. The amended measure — focused on reporting rather than an explicit cap — passed on first reading by 6–5.
Supervisor McGoldrick (item sponsor) said the intent was to ensure city funds do not subsidize excessive pay and to highlight disparities between executive and lowest-paid full‑time nonprofit employees. The original draft would have limited city-funded pay to no more than six times the nonprofit’s lowest full‑time salary; the board discussed carve-outs for charitable‑trust departments and concerns about legal limits on city authority over privately raised funds.
Opponents warned the initial approach was a blunt instrument that could produce unintended consequences for nonprofits with complex missions and diverse budgets. One critic called the proposal a “sledgehammer when we need a scalpel,” noting that the annual budget process already allows supervisors to exercise funding discretion. After debate, McGoldrick moved to rescind the original vote and substitute a reporting requirement.
Under the adopted amendment the board approved on first reading, each nonprofit receiving city funds through contract or grant must annually report to the contracting department the salary and benefits paid to its executive director, the portion paid with city funds, and the salary and benefits of its lowest‑paid full‑time employee (excluding certain SDI payments). The Controller will receive the consolidated reports.
The board recorded a 6–5 roll call in favor of the narrowed measure on first reading; sponsors said the change is intended to give the city better data to inform future policy options rather than immediately impose broad salary limits.
