And corporate tax has nothing whatsoever with what you are talking about now. If I had a corporate tax question, I would bring in a corporate tax attorney as it is out of my wheelhouse, just as this is out of yours. This is quite literally part of my job, so maybe listening instead of trying to bluster about knowing everything would do you well.
Can vs should are two separate things. One, you have no idea what this guy makes after 17 years at the university, so you are frankly at best making an assumption or at worst talking out of your ***. Two, yes there are layoffs but they also found the room during covid to hire the guy from FSU, so while there may be trimming the fat, others will be getting raises or brought on. Three, he has been there 17 years. Change assistant to senior in his job title. The NCAA is not going to tell you that you are not allowed to promote people. It is stupid and naive to think otherwise. Four, all companies do benchmarks when it is raise time, or to hire or promote someone - big four accounting firms, big law firms, etc. It is not just not-for-profits. They use ADP or similar companies that have this information available. However, Miami is a not for profit, so what you are saying about what for-profit companies do is 100% irrelevant, in addition to being flatly wrong. Five, it is not a whole study. You don't think peer athletic departments are paying similar roles? It is in the paper at big schools. You just need to make sure people are not being paid an exorbitant amount relative to their job title, experience, etc. and document it. 501c3s have compensation committees that have to approve things similar to this. Six, people get promoted all of the time. This is not like hiring a high school coach into an analyst role for $150k a year or creating a new position.
I am not saying they will do this or even that they should do this during Covid, and I feel for people like your friend. However, I am saying that it is not the huge deal that you have convinced yourself that it is. Schools have done a lot more egregious things with employees and creating of positions than potentially promoting a 17 year employee. Sorry, but you are just wrong in this case. I am not going to fill up this thread beyond this hypothetical that neither of us have any form of a say or interest in.