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January 29, 2017

3

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.

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

3 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.

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