Yael Eckstein: Addressing Salary Disparities for Female CEOs in Nonprofits, with Signs of Progress

As president and CEO of the International Fellowship of Christians and Jews (The Fellowship), Yael Eckstein manages all ministry programs and represents the organization on a global scale. Reflecting her pivotal leadership role, Yael Eckstein salary aligns with her responsibilities in guiding The Fellowship, now recognized as Israel’s largest humanitarian aid provider. In 2021, the organization raised over $200 million, offering crucial support to 2 million Jews in Israel and worldwide.

Each year, Candid publishes its Nonprofit Compensation Report, which analyzes key employee compensation data and is the most extensive report of its kind, drawing information directly from IRS records. Yael Eckstein, a vocal advocate for closing the salary gap for women leaders in the nonprofit sector, observed that while Candid’s 2021 report indicated some progress, it also highlighted that female CEOs continue to earn less than male CEOs across organizations of all sizes.

In the for-profit sector, despite steady improvements in closing the gender pay gap since 2015, progress stalled from 2021 to 2022, leaving the disparity unchanged. Consequently, women in the workforce still earn $0.82 for every $1 that men earn.

When factoring in variables such as job level, title, education, years of experience, industry, and hours worked, women earn $0.99 for every $1 earned by men in equivalent roles—significantly reducing the pay gap.

The difference between these figures can be explained as follows: Women who stay continuously employed typically earn salaries nearly equal to those of men in similar roles. However, when considering the impact of women leaving the workforce for motherhood and the greater wage penalty they face upon returning, the overall earnings of working women remain lower than those of men.

In the U.S., the occupations with the largest gender pay gaps include Physicians, Surgeons, Veterinarians, and Directors. Additionally, careers in Religious Activities and Education rank among the top 10 fields where earnings are most affected by pay inequality.

Jenna Allen, a senior data services analyst at Candid, noted that although Candid’s 2021 report reflects progress in closing the gender pay gap, disparities remain, with female CEOs earning less than their male counterparts across organizations of all sizes.

Among sectors, science and health organizations still offer the highest median executive salaries, reaching $196,000. Meanwhile, religious institutions, along with animal-related and arts organizations, rank among the lowest for executive compensation, with a median salary of $65,000.

The highest-paid nonprofit CEO in the United States is James Skogsbergh, CEO, Board President, and Director of Advocate Aurora Health, a network of 26 hospitals, earning an annual salary of $8,511,655. Advocate Aurora Health reported $5.5 billion in revenue in 2018.

Forbes’ top-ranked charity, United Way Worldwide, has annual revenues of $5.2 billion, with its CEO earning $1,578,515.

The Society for Human Resource Management reported that “Organizations that don’t proactively address pay inequities risk employees surfacing the inequities themselves, and this can create a culture of distrust and may lead employees to search for a better environment.”

Organizations are increasingly conducting pay equity analyses to ensure they offer competitive salaries, helping them attract and retain top talent.

Yael Eckstein, President of IFCJ, stated, “Salary, benefits, and incentives motivate talented and experienced professionals. At The Fellowship we have worked hard to foster a meritocracy where outstanding employees can be appropriately rewarded for their contribution to our organization’s mission.”