Ethics Scenario #66: Brochton Medical Center

66. Victor is the Vice President of Development for the nonprofit Brochton Medical Center, a 501(c)(3) nonprofit tax-exempt organization. He has a team of assistant vice presidents who help him raise nearly $40 million annually for the Center, and an additional $30 million for its capital campaign. Victor drives his staff hard, but pays them well and entices them to work even harder by sponsoring competitions in which high performers are rewarded, and prizes are offered for extraordinary closes on major gifts. This year, he offers two tickets to the Superbowl and two airfares and a hotel suite for four days in New Orleans to the Vice President who closes the most total gifts in the calendar year.

a. Is Victor’s compensation program ethical?