An Act relative to public charity executive and board of directors compensation

This bill establishes compensation limits for high-level staff and board members at public charities in Massachusetts that generate over $1 million in annual revenue. It caps the annual pay for executives and senior managers at $500,000 and explicitly defines compensation to include salaries, bonuses, deferred payments, and vehicle leases. Additionally, the legislation prohibits public charities from paying cash compensation to board members, allowing only expense reimbursements related to their duties. Charities seeking to exceed these limits or pay board members must request a public hearing before a commission of state officials, which must find that the exception serves the public interest before granting a five-year waiver. Violations of these new rules could result in the organization losing its official status as a public charity.