Executive Salaries at St. Jude’s (2017)
When some people think of St. Jude’s, they associate the organization with the children’s research hospital but St Jude’s is actually two organizations: the children’s hospital (St. Jude Children’s Research Hospital) which provides research and medical care, and the fundraising organization (ALSAC which stands for American Lebanese Syrian Associated Charities). Although most non-profits do not separate fundraising from services, St. Jude’s does so both organizations need to be analyzed when looking at “St. Jude’s.“
ALSAC raised $1.5 billion (for the year ending June 30, 2017), most of which came from contributions ($1.3 billion) and investment income/gain on the sale of assets, gaming activities and fundraising events ($200 million or $0.2 billion).
Total expenses for ALSAC were $1.076 billion, of which $664 million (44% or $44 out of every $100 in revenue) was given to the hospital (St. Jude Children’s Research Hospital) for operational and capital budget needs. ALSAC retained $428 million (29% or $29 out one every $100 in revenue) and spent $412 million (27% or $27 out of every $100) on functional expenses related to fundraising (the mission of ALSAC).
So, the bottom line is: If you donated $100, $44 was given to the hospital, $29 was spent on organizational expenses at ALSAC and $27 was put into savings (which had more than $4 billion at year-end).
Functional expenses include compensation for the 1,639 employees of ALSAC whose purpose is to raise funds for the hospital. The 1,639 employees were compensated $137 million which equates to an average compensation of $84,000 each. However, 255 employees of ALSAC received more than $100,000 in compensation. The nine (9) most highly compensated individuals were reported to be:
- $1,087,044: James Downing, Ex-Officio Director (comp from St. Jude Children’s Research Hospital)
- $ 868,643: Richard C Shadyac, Jr.: CEO and Ex-Officio Director
- $ 542,741: Emily S Greer, Chief Administrative Officer
- $ 517,293: Jeffrey T Pearson, Chief Financial Officer
- $ 514,395: Emily Callahan, Chief Marketing Officer
- $ 497,124: Robert Machen, Chief Information Officer
- $ 471,938: Anurag Pandit, Chief Investment Officer
- $ 454,251: Sara Hall, Chief Legal Officer
- $ 447,309: George Shadroui, Chief Strategy Officer
As illustrated above, 9 employees received total compensation of $5.5 million. Of the 9 most highly compensated employees, 6 (67%) are male, while 3 (33%) are female.
The 990 also reports ALSAC paid for companion travel and health or social club dues or initiation fees (See Schedule J, Part III for more information).
St. Jude Children’s Research Hospital
St Jude Children’s Research Hospital reported total revenue of $901 million (for the year ending June 30, 2017) which came from four (4) sources: ALSAC provided $664 million, patient care (primarily insurance companies) provided $124 million, $79 million came from government grants, and $34 million came from royalties, the cafeteria, a bond gain, and other sources.
Total expenses for St Jude Children’s Research Hospital were $857 million, of which includes $462 million paid in compensation to the 4,929 employees, which equates to an average compensation of $94,000. However, 766 employees received more than $100,000 in total compensation. The 15 most highly compensated employees were reported to be:
- $1,249,628: Thomas E Merchant, Chair
- $1,087,044: James Downing, President and CEO, Ex-Officio Director
- $1,002,230: Ching-Hon Pui, Chair
- $ 938,849: David Ellison, Chair
- $ 926,684: Leslie L Robison, Chair
- $ 894,215: Charles M Roberts, EVP/Director Cancer Center
- $ 868,643: Richard Shadyac, Ex-Officio Director (who received compensation from ALSAC)
- $ 794,456: Elaine I Tuomanen, Chair
- $ 793,407: Carlos Rodriguez-Galindo, EVP/Chair
- $ 736,869: Mary Anna Quinn, EVP/Chief Admin Officer
- $ 716,462: William E Evans, Faculty and Former Press and CEO
- $ 643,897: James I Morgan, EVP/Scientific Director
- $ 629,068: Pat Keel, SVP/CFO
- $ 563,371: Larry Kun, Former EVP, Clinical Director
- $ 483,563: Michael C Canarios, Former SVP/CFO
As illustrated above, the 15 most highly compensated employees received $12.3 million. Of the 15 most highly compensated employees, 12 (80%) are male while 3 (20%) are female.
The 990 also reports:
The organization paid for companion travel and tax indemnification and gross up payments (for more detail see Schedule J, Part III of the 990. In addition:
$344,860 was offered to the former CFO under a separation agreement whose terms are confidential.
Payments were made to five employees under the non-qualified deferred compensation plan during the year:
- Michael C Canarios: $23,877
- Ching-Hon Pui: $289,585
- Mary Anna Quinn: $275,360
- Leslie L Robison: $286,030
- Elaine I Tuomanen: $265,433
Business transactions with interested persons include:
- Mary Rellings (compensation of $508,689) is related by family to William E Evans (compensation of $716,462).
- Susanna Downing (compensation of $63,360) is related by family to James R Downing (compensation of $1,087,044).
- Diane Roberts (compensation of $200,935) is related by family to Charles M Roberts (compensation of $894,215).
To read the ALSAC IRS Form 990 (2016) for the year ending June 30, 2017, click here.
To read the St. Jude Children’s Research Hospital IRS Form 990 (2016) for the year ending June 30, 2017, click here.