| Abstract: | We develop and test a model of nonprofit executive compensation based on theories of organizational science, economics, and agency theory. Our sample consisted of 114 directors of small business development centers in the United States. Consistent with our model, we find significant effects for human capital, organizational size, and organizational affiliation. We find tentative support for a significant pay‐for‐performance relationship. We find that when education, tenure, size, performance, and affiliation are held constant, female executives are compensated significantly less than male executives. |
