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January 17, 2013

Israel Caps Pay for Leaders at Government-Supported Nonprofits

Israel's government is moving to limit compensation for top executives at state-supported nonprofit groups to the level of their peers at similar public institutions, reports Haaretz.

The regulation, covering chief executives and vice presidents at think tanks, social-service groups, religious organizations, and other charities, "will allow the government to rein in the salaries of senior executives when that money is coming out of the public's pocket," said Finance Minister Yuval Steinitz, who signed the directive Wednesday.

The order also blocks taxpayer-supported nonprofits from funneling money to corporations they own or control, except in the form of tightly regulated loans, and cuts off government support for organizations with cash reserves exceeding their annual revenue.