"The play's the thing," said Shakespeare's Hamlet.

The pay's the thing, say some critics of the Guthrie Theater. In other words, does it take a big salary on the prairie to stage "Little House on the Prairie"?

That's the question many Minnesotans may be asking after reports that Guthrie Theater Director Joe Dowling was paid $682,300 in salary and benefits in 2007, the most recent year for which figures were available. His compensation included a one-time bonus of $100,000 for his role in building the new theater.

To some, this may seem excessive, especially considering these tough economic times and the fact that the Guthrie is a nonprofit that has received state aid.

But Dowling's world-class compensation is also reflective of an arts organization that itself is world-class. With three theaters and a nearly $26 million annual budget, it's among the largest regional theater companies in the country. And its impressive new home on the Mississippi River in downtown Minneapolis is a state-of-the-art building designed by Jean Nouvel, the recent recipient of the Pritzker Prize, architecture's top worldwide honor. Dowling spearheaded the building effort, convincing constituencies both public and private that the Guthrie was a unique state asset that gave Minnesota not only an accessible arts space, but also a competitive advantage in positioning the Twin Cities as a vibrant, thriving community.

The new building spawned new building of its own, as condominiums and restaurants, as well as the even newer MacPhail Center for Music, sprang up along the long-neglected riverfront. The value that Minnesotans place in the arts was highlighted in the Nov. 4 election. Receiving more votes than President-elect Barack Obama, the Clean Water, Land and Legacy Amendment will dedicate funding for the next 25 years to not only the great outdoors, but the great indoors as well, with arts organizations receiving 19.75 percent of the funds.

Dowling's pay also reflects his dual role at the theater. Unlike most of his peers, who serve almost exclusively as artistic directors, Dowling is also responsible for what's in the till. Acting much like the Guthrie's CEO, he has four senior managers -- the directors of production, development, external relations and the chief administrative officer -- reporting to him.

And so far, it's an effective structure. The theater had 12 straight years in the black through 2007, and although 2008 financials are not yet available, the bright lights went up on 33 percent more performances last year and attendance increased 22 percent.

Some legislators have suggested state-mandated caps on nonprofit pay. But do we really want state government to decide how much nonprofit executives should be paid? Couldn't that put Minnesota's large nonprofit sector at a huge disadvantage in recruiting top talent to the state? Of course it would.

Along with three others at the Guthrie, Dowling took a voluntary 20 percent pay cut when the Guthrie hit a rough patch in 2003. It's not clear whether he will do the same given the belt-tightening going on today in organizations across the country. His contract expires in 2010, and at that point it will be up to the Guthrie's board to negotiate a new compensation package. That's as it should be. Indeed, the board should heed the title of the play previewing at the Guthrie on Saturday: "A Delicate Balance."