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December 28, 2018

Executive Compensation at United Way (2016)

by Anne Paddock

United Way Worldwide (United Way) is the leadership and support organization for the whole United Way network which includes approximately 1,800 local offices in 45 countries. A non-profit 501 (c) (3), United Way Worldwide is based in Alexandria, Virginia and has 247 employees who received total compensation of $28.6 million in 2016, which equates to an average compensation of $116,000. However, only 83 of the 247 employees received more han $100,000 in compensation with the 15 most highly compensated individuals listed below:

  • $1,223,823:  Brian Gallagher, President and CEO
  • $  522,162:  Joseph Haggerty, Former EVP and COO (terminated 1/8/16)
  • $  408,672:  Stacey Stewart, Former President United Way US Network (terminated 11/7/16)
  • $  404,503:  Robert Berdelle, EVP and CFO
  • $  360,245:  Evan Hochberg, EVP Impact Strategy Innovation
  • $  343,520:  Brian LaChance, SVP Chief of Staff
  • $  324,360:  Jose Ferrao, EVP International Network
  • $  314,843:  Paul DeBassio, EVP Investor Relations
  • $  293,242:  Lisa Bowman, EVP Chief Marketing Officer
  • $  291,911:  Dana Brown, SVP and Chief Digital Officer
  • $  278,969:  Patricia Turner, SVP and General Counsel
  • $  265,469:  Steve Taylor, SVP and Counsel, Public Policy
  • $ 260,890:  John Taylor, SVP Chief Technology Officer
  • $  219,076:  Maureen Grant-Hayes, VP Major Donor Relations
  • $  186,708:  Lori Malcolm, EVP Chief Culture Officer

Collectively, the 15 individuals above received total compensation of $5.7 million. Of the 15 most highly compensated individuals, 9 were male (60%) and 6 were female (40%). Of the 10 most highly compensated individuals, 7 were male and 3 were female.

The IRS Form 990 (2016) also reports the organization paid for first class or charter travel. The notes state the President and CEO may be reimbursed for business class air travel (first class if there are only two classes) when traveling for business purposes on flights longer than 4 hours.

Brian Gallagher, the President and CEO received $71,931 in a non-qualified supplemental retirement plan.

Joseph Haggerty, the former EVP and COO received $115,966 in a non-qualified supplemental retirement plan.

There are those who will wonder why United Way Worldwide needs to spend $28.6 million on 247 employees and specifically why the organization pays more than $1 million to its President and CEO (and $186,708 – $522,162 to 14 other individuals)  when the primary mission of United Way is to distribute funds to local organizations (in 2016, the organization collected $109 million, of which $29 million came from the local chapters, and gave $62 million (57% or 57 cents out of every $1) in grants.  Donors essentially covered $47 million in compensation and support related expenses of the United Way Worldwide office in 2016. Given that a significant portion of the grants awarded by United Way Worldwide are to local United Way offices, a donor may wonder how these high salaries are justified.

To review the IRS Form990 (2016) click here.

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