Skip to content

January 29, 2017

18

Executive Salaries at St. Jude’s

by Anne Paddock

When people think of St. Jude’s, they often think of a children’s hospital but St. Jude’s is actually two organizations:

  • ALSAC – St. Jude Children’s Research Hospital, Inc. (ALSAC)
  • St. Jude Children’s Research Hospital, Inc. (Hospital)

ALSAC stands for the American Lebanese Syrian Associated Charities and “exists for the sole purpose of raising funds and building awareness to support the current and future needs of St. Jude Children’s Research Hospital, Inc.” However, ALSAC only gives 50 cents of every dollar raised to the Hospital (based on the IRS Form 990’s). The other 50 cents is spent on supporting the fundraising organization – (about 29 cents of every dollar) while the remainder (21 cents of every dollar) is placed in the ALSAC fund balance which totaled more than $3.4 billion (net), concentrated in cash and securities as of June 30, 2015.

Although the Hospital has a beneficial interest in the assets of ALSAC, the organizations are separate non-profit 501 (c)(3) entities. Consequently, there are two sets of executive compensation.
ALSAC
ALSAC has 1,417 employees of which 198 received more than $100,000 in compensation. According to the IRS Form 990 (2014) for the year ending June 30, 2015, ALSAC paid for travel of companions and health or social club dues or initiation fees for unspecified staff.  The highest paid executives of ALSAC were:
  • $762,202:  Richard C Shadyac, Jr., CEO and Ex-Officio Director
  • $448,450:  Jeffrey T Pearson, CFO
  • $460,454:  Emily S Greer, Chief Admin Officer
  • $434,640:  Emily Callahan, Chief Marketing Officer
  • $415,820:  Robert Machin, Chief Information Officer
  • $407,327:  Patricia Wyatt, Chief Development Officer
  • $391,400:  Sara Hall, Chief Legal Officer
  • $378,448:  William Reeser, Chief Investment Officer

As illustrated above, $3.7 million in compensation was provided to 8 executives.

The IRS Form 990 (2014) also reports the following:

  • Infocision Management Corp of Akron, Ohio, a fundraiser solicitor, raised $4,163,170 and was compensated $4,043,469 providing ALSAC with $119,701;
  • MDS Communications Corp of Mesa, AZ, a fundraising solicitor, raised $2,659,576 and was compensated $2,610,979 providing ALSAC with $48,997;
  • Paradysz Inc. of NY, NY was compensated $1,143,676 for fundraising counsel;
  • Mindset Direct of Arlington, VA was compensated $369,132 for fundraising counsel; and
  • Russ Reid Company Inc. was compensated $155,201 for fundraising counsel.

Also noteworthy is that Infocision Management Corp of Akron, Ohio received $5,047,544 as the second highest paid contractor while MDS Communications Corp received $2,331,542 as the fifth highest paid contractor. It is unclear if this compensation is in addition to the fundraising fees or not (although the contractor fees for MDS are less than the fundraising fees which could mean these are two separate fee payments). So, the question becomes:  Why are two organizations – Infocision Management Corp and MDS Communications Corp – being retained to solicit funds and then compensated by keeping most of what they raised? And, why did ALSAC pay nearly $2 million in fundraising counsel fees when the organization has a chief marketing officer who is paid nearly a half million dollars?

HOSPITAL

The Hospital has 4,411 employees, of which 601 were given more than $100,000 in compensation. The highest compensated executives at the Hospital were:

  • $1,042,217:  James R Downing, President and CEO (7/15/14-6/30/15)
  • $1,011,640:  William E Evans, President and CEO (7/1/14-7/14/14)
  • $  886,267:  Larry Kun, EVP, Clinical Director
  • $  841,635:  Richard Gilbertson, EVP, Director Cancer Center
  • $  358,963:  Mary Anne Quinn, EVP, Chief Admin Officer
  • $  496,713:  Michael C Canarios, SVP, Chief Financial Officer
  • $  724,084:  Doralina Anghelescu, Faculty
  • $  771,244:  Andrew Davidoff, Chair, Faculty
  • $  678,029:  Wing-Hang Leung, Faculty
  • $  681,897:  Ching-Hon Pui, Chair, Faculty
  • $  707,282:  Joseph P Taylor, Chair, Faculty

As illustrated above, $8.2 million was provided to 11 executives.

The Hospital reports on the IRS Form 990 that they paid for first class or charter travel and travel for companions along with tax indemnification and gross up payments for officers and highly compensated employees..

Click here to read the ALSAC IRS Form 990 (2014) for the year ending June 30, 2015

Click here to read the Hospital’s IRS Form 990 (2014) for the year ending June 30, 2015

18 Comments Post a comment
  1. Stewart Tolley
    Jun 30 2017

    A charity for children. Charity employees ought to be ashamed — outlandish wages. Disgusting.

  2. Richard Letts Jr.
    Jul 25 2017

    one million dollar salary! Please take me off your mailing list NOW.

  3. Jul 26 2017

    Richard: Please contact St. Jude’s to have your name removed. This site simply reports the information provided by St. Jude’s and ALSAC to the IRS via the IRS Form 990’s.

  4. Stephen Priebe
    Oct 19 2017

    Fine Richard, have your name removed from the mailing list. Also tell me that you will never use St Jude Childrens Hospital if your child or grandchild ever needs their help, and I hope and pray they never will. Also promise me you will never allow your loved one to be treated using research developed by this hospital which they share for free around the world. Same for anyone else who shares the same opinion of St Judes.

  5. Oct 20 2017

    Wow, Stephen Priebe…it’s that black and white for you. How sad. Richard doesn’t have to tell you anything. I will: Just because a hospital does good things DOES NOT MEAN THEY CAN’T DO BETTER. THEY DON”T GET A PASS and neither does any organization that solicits the public for donations.

  6. Stephen Priebe
    Oct 20 2017

    Anne, you are correct. I guess I do see it black and white. All I know is St Judes saved my life from leukemia and the life of my 1 year old nephew.
    I feel forever indebted to this place and I will always support them. I do get defensive when anyone speaks poorly of them. Maybe too defensive, but that’s my feelings about St Judes.

  7. Oct 20 2017

    You of all people should know that any organization that depends on public support does not get a pass with accountability if they are to retain the confidence of the public. The numbers reported in this post and any post made on this site come directly from ALSAC and St. Jude’s – and specifically the tax returns that ALSAC and St.Jude’s submitted to the IRS. People like you who refuse to hold St. Jude’s and ALSAC accountable are the reason that only 50 cents of every $1 raised by ALSAC goes to the hospital (the other 50 cents is allocated: 29 cents to fundraising and 21 cents to the fund balance which by the way has $4 billion. How can you not be outraged that more money is not allocated to research or to help save more children? They do not need $4 billion in cash and investments in a fund balance. You of all people should not perpetuate this type of behavior by turning a blind eye to what ALSAC and St. Jude’s are doing with public funds.They do great things but could do so, so, so much better. Read the tax returns. Read the tax returns. And, again, read the tax returns.

  8. Stephen Priebe
    Oct 22 2017

    Also, just to let you know I did read the tax returns and can’t dispute what you are saying from a black and white point of view of numbers. I did a little research and read the tax reports/company profile of Enron. Wow, they looked great on paper. Numbers were superb. Invest in this company and it is a sure winner. Didn’t turn out that way though. I’m just saying I’ve learned to look at a company, person, organization from all aspects. Not just numbers, you need to look at their business, personnel, long term goals, challenges facing their potential growth.

  9. Oct 22 2017

    If you did a little research, you would realize:

    1. When asking people if they want to make a donation to St. Jude’s, solicitors should NOT be telling potential donors that “100% goes to the kids” like I was at Brooks Brothers, which led me to read the 990 (as you point out above, some things are too good to be true). People should be told the TRUTH which is that of every $1 that ALSAC collects, 29 cents is spent on fundraising, 21 cents goes to the fund balance, and 50 cents goes to St. Jude’s (and of that 50 cents, 7 cents goes to the fund balance). In real numbers, ALSAC raised $1.18 billion in 2015, spent $340 million on fundraising, gave $589 million to the hospital, and retained $251 million for their fund balance which already had $3.5 billion (billion, not million). That is what the tax returns report. But, my guess is that if the public were told this information, donations would decline. The other option is for St. Jude’s to spend more money on helping sick children and their families. Ask yourself: Did ALSAC really have to put $251 million in their fund balance in 2015? How many kids could have been helped? How much more research could have been done?

    2. Enron has absolutely nothing to do with ALSAC/St. Jude’s and comparing the two has no meaning. However, if you’re claiming that Enron looked good and they weren’t good and that ALSAC and St. Jude’s don’t look good, but are…..I would say that’s simply not true. Between the two points of good and bad, there is a lot of so-so, needs improvement, etc.

    3. The point of my posts are to address what I was told: where my donation would go versus what ALSAC and St. Jude’s tell the IRS. At no point, did the posts advocate to simply look at the numbers submitted to the IRS. Read the links below:

    https://paddockpost.com/2014/11/17/where-does-your-1-to-st-judes-childrens-research-hospital-go/

    https://paddockpost.com/2017/02/12/where-does-100-to-st-judes-go/

    https://paddockpost.com/2017/04/10/19-a-month-to-st-judes-how-much-goes-to-the-kids/

    As I have always advocated: St Jude’s does good things but they could do so much better. This for some reason is very difficult for some people to understand…it’s not an all or nothing especially when talking about organizations that rely on public dollars and subject to transparency.

    Your defensiveness, which you clearly admit, is that you have no toleration for any criticism of St. Jude’s and your firm belief that because they do good things, they get a pass in the accountability department. They don’t get a pass – no organization does. It simply doesn’t work that way when public dollars are concerned. If ALSAC and St. Jude’s ask the public to make donations, the public has a right to be told the truth and to hold both organizations accountable for how money is spent (and in this case saved).

    Instead of defending ALSAC and St. Jude’s, why don’t you put your efforts into making it better?

  10. Austin
    Nov 18 2017

    1) ALSAC/St. Jude wants the best of the best running their organizations, and best of the best must be compensated accordingly.
    2) The money from donations that is reallocated back into fundraising IS money that goes back to the hospital by proxy. If they stopped investing this money in finding ways to grow donor dolllars the donor dollars would stop growing.
    3) The do have money set aside in other funds because the hospital is expensive and funded 100% by the donations of others so they have to have a contingency plan to keep the hospital going and growing even if the donations can’t keep up for whatever reason.

    The work and research this charity and hospital is doing is undeniably saving countless lives around the world. As far as charities go you would be hard pressed to find a better one.

  11. Nov 18 2017

    Re: Austin:

    1. Most organizations want the best of the best running their organizations and as noted in posts about St. Jude’s and ALSAC, talented people must be well compensated but how well compensated is not universally agreed upon ($3.7 million to 8 marketing executives is excessive to many donors and marketing firms that keep 90% of a donation is also excessive by almost anyone’s standards of decency).

    2. The money raised from donations is not reallocated back into fundraising (see the Income Statement – the fundraising expenses are expensed annually). For every $1 ALSAC collects, 29 cents is spent on fundraising and 21 cents (which amounted to $250 million) was put into the fund balance which boosted the net fund balance to over $3 BILLION that year. That $250 million could have helped more sick children and their families (the point being St. Jude’s does good things but they could do so much better). Only 50 cents of every $1 went to the hospital and the hospital used 43 cents, putting 7 cents in the fund balance. Surely, St. Jude’s should spend more than 43 cents of every $1 helping sick children and their families. It is important to remember these numbers come from the 990’s submitted to the IRS by ALSAC and St. Jude’s.

    3 St. Jude’s reported on their site that they need to retain a year and a half of operating costs which amounts to about $1 billion (in case donations dry up which appears to be highly unlikely judging by the IRS Form 990’s). There are certainly other reasons they may save funds (i.e. future capital improvements) but they don’t need to keep $4 billion (the most recent net fund balance) when there are so many sick children they could help.

    Yes, St. Jude’s is saving lives but they could do so much better. It’s not a matter of finding a better charity…it’s a matter of doing better with public donations and saving more sick children and helping their families. What you and so many other commenters seem to think is that ALSAC and St. Jude’s deserve a pass because they do good things. They don’t get a pass. They can and should do so much more. What perplexes me is why you and other supporters are not demanding improvement.

  12. Angelo
    Dec 14 2017

    I couldn’t agree with you more Anne Paddock. They have enough money stashed away that if someone else had it they could build another “St Jude’s”. And be so much more efficient. To think that those money hungry Executives could be so un conscientable, when people making a sacrifice donating their money thinking it was going for a worthy cause, only to find out it was going to line the HUGE pockets of the executives!! I only wish the truth would make it to the headlines of newspapers…Then you might see some re alignment at St. Jude’s..But don’t hold your breath…I have a question..Does Marlo Thomas sign the literature used by those fund raising organizations that end up keeping 98% of the amount they raise ?? I bet her father is turning over in his grave. ALSAC is a real dis-grace, and even St. Jude’s Hospital can do a more efficient job with the funds they do end up with… 83% efficient is nothing to be proud of.
    Thank you Anne for the facts, even though they made me so sick to my stomach thinking how many more children could be helped !!

  13. Dec 15 2017

    Thank you for your comments. I don’t know if Marlo Thomas signs the literature used by the outside fundraising organizations. Based on the tax returns submitted by ALSAC and St. Jude, ALSAC and St. Jude’s do not have an 83% efficiency ratio (ALSAC spent 29% of what they collect on fundraising, placed 21% in their fund balance, and gave 50% to the hospital.

  14. Tim McCaff
    Jan 4 2018

    Anne,
    It appears that William Evans is employed by both St. Judes and ALSAC. I’m not sure if he jumped from one to the other or serves both at the same time. He is one of the highest compensated executives. Could you shine some light on Mr. Evans activities and any conflict of interest issues?
    Also, couldn’t St. Judes get a better % of total donations by initiating a competitive bidding process for it’s fundraising? It does appear that ALSAC and St. Judes are more integrated than they should be.

    Thanks, Tim

  15. Jan 5 2018

    Very often, employees of one organization are also compensated by another “related” organization. If you look at the IRS Form 990 in the compensation section you can see a column that lists compensation by a related organization. As you probably already know, most non-profits don’t have separate fundraising organizations. ALSAC exists to support St Jude’s – they simply decided to separate the organizations. There are those who say the organizations should be totally integrated so that potential donors looking at the 990’s can clearly see all the costs (fundraising, project, and management costs) associated with what is really “one” organization.

    With regards to getting a better percentage of total donations and having a competitive bidding process, I don’t know the answer (although I often see outside fundraising organizations take up to 90% of funds collected through phone, internet, and mail solicitations). I do know that ALSAC ‘s purpose is to raise funds for the hospital and that ALSAC reported 1,417 employees on the IRS Form 990 for the year ending June 30,2015 so the fundraising “machine” is in place…and, it clearly works.

    My point is that ALSAC spent 29 cents of every dollar on fundraising costs, put 21 cents of every dollar in the fund balance (which has about $4 billion) which amounted to hundreds of millions and then gave the hospital 50 cents. The questions seem to be (but are not limited to):

    Can the fundraising arm be more efficient by spending less on fundraising?
    Can the organization put more towards helping kids and families instead of putting more and more in their net fund assets?
    Why won’t businesses collecting funds for these organizations tell the truth to consumers who ask (I was not told the truth at Brooks Brothers)?
    Are the compensation packages excessive and should ALSAC be paying for companion travel and for health and social club dues?

  16. James Ferguson
    Apr 10 2018

    How could you the executives of St. Jude accept the pay you recieve? I understand you have to live, you should be paid. However the time and effort as well as the cost to the volunteers the sacrafice of these people should make you feel ashamed. You’re doing a wonderful job. But the pay fare out weighs the need of you. Thank you for your abilities your life’s work but give a little bask. Do you realize the sacrifice the average person gives at the monthly $19.00 rate. How many of the executives give $19.00 a month. Reading of all your greed breaks my heart. I’m sorry I feel this way, have to feel this way. If something isn’t broken don’t fix it. I should look at it that way. Looking at these children and knowing your pay breaks my heart. No fix needed just compassion I suppose.

  17. James Ferguson
    Apr 10 2018

    Me again. The more I read of the executives pay the more alarmed …heart broken I am. I have always looked at St. Jude in a light that shined so bright. I pray every night, have for years for God to heal the children and bless the ones that give of their,time and money to help these children. I honestly wish I had not come to this sight. I feel numb, hurt, little anger. I do not like this. It is crushing. I was not on a witch hunt, just surfing. I will never look at the administrative actions the same more will I give anymore. I will drive down and hand my money to a suffering child or parent. I will not let the administration touch a dime ever again. You have lost one of your great caring supporters.

  18. James Ferguson
    Apr 10 2018

    Go to the executive tolit and flush please.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

Note: HTML is allowed. Your email address will never be published.

Subscribe to comments

%d bloggers like this: