Another senator, Charles E. Grassley, Republican of Iowa, has told Treasury Secretary Timothy F. Geithner that he is concerned that the Internal Revenue Service is not tough enough in policing pay in the nonprofit sector and that regulations governing compensation are too weak.
“I’ve asked him to review these regulations to see how they can be made effective,” Mr. Grassley said. “What’s there now doesn’t seem to be working.”
I’ve got nothing against a careful look into this issue, but some of the non-profits cited in that report are huge organizations. Perhaps they need to pay a bit more than you might expect because corporations have been inflating executive compensation by cherry-picking comparable peers.