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New York Governor Andrew Cuomo Orders Investigation Of Nonprofit Exec Pay

Andrew Cuomo

First Posted: 08/05/11 05:14 PM ET Updated: 10/05/11 06:12 AM ET

New York Gov. Andrew Cuomo is calling for complete transparency among the city's top do-gooders.

He's created a new task force to investigate executive salaries at nonprofits that receive taxpayer support, according to a release from Cuomo's office.

The investigation will ensure that public money is going to help the intended recipients and is not being diverted to salaries. Cuomo says in the release:

"Not-for-profits that provide services to the poor and the needy have a special obligation to the taxpayers that support them. Executives at these not-for-profits should be using the taxpayer dollars they receive to help New Yorkers, not to line their own pockets."

The governor's mandate follows recent reports of excessive nonprofit executive pay, according to the release.

The New York Times reported Tuesday that brothers Philip and Joel Levy earned almost $1 million a year each, while running a nonprofit for the developmentally disabled that was funded by Medicaid.

But the public money went toward the Levys' cars, their children's college tuition and even Philip Levy's daughter's Greenwich Village apartment during grad school, according to the Times.

The New York Post has also reported on high nonprofit CEO salaries, such as the almost $2 million that Lincoln Center Chief Reynold Levy earns.

Cuomo's task force will investigate current salaries and guarantee transparent reporting in the future, the release states.

"This task force will do a top-to-bottom review, not only to audit current compensation levels, but also to make recommendations for future rules to ensure taxpayer dollars are used to serve and support the people of this state, not pay for excessive salaries and compensation."

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Filed by Jessica Prois  |