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DSM officials said they base their executive compensation, with the help of a consultant, on surveys of the pay and benefits offered at similar companies. They said they compare their compensation levels to for-profit companies as well as nonprofits, because of the varied tax status of their subsidiaries — and because they dental SEO services compete against for-profits in recruiting executives. Former Delta Dental of Massachusetts president Fay Donohue received more than $7 million in total compensation in 2015, despite working just a few months before retiring that year. DSM competes locally and nationally with a range of companies, from Boston-based Blue Cross to publicly traded insurance giants such as Aetna, Cigna, and Metlife, where CEO compensation reached $16 million or $17 million in 2015. The company, which began as a nonprofit launched by a group of dentists more than 50 years ago, is a sprawling organization with 46 subsidiaries, including 38 for-profits. With 24 million members in 30 states, the company said it generated $1.8 billion in revenue through all its subsidiaries in 2015. The nonprofit side of DSM’s business files tax returns that are publicly available, but figures for the for-profit side of the business are private, making it difficult to fully evaluate the company’s finances. As with other nonprofits, DSM’s nonprofit business is exempt from paying taxes. Nonprofit and compensation experts said DSM’s complex corporate structure — including its many for-profit subsidiaries — is not surprising, given the size and scale of its business. And, experts said, it’s not unusual for such nonprofits to measure their compensation against big for-profit competitors. An analysis by Equilar, a firm that studies executive compensation, found that Delta’s compensation was in line with the pay and benefits at other like-sized for-profit health care and insurance companies.
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