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February 8, 2019

14

Executive Salaries at St. Jude’s (2017)

by Anne Paddock

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

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 (who received compensation 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, 215 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

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.

14 Comments Post a comment
  1. Veronica Preuss
    Feb 20 2019

    I am astounded to see the compensation paid to your listed employees. I have been a donor for a long time but with this information my donation is unnecessary and won’t be happening again. I just retired , worked as an ER nurse for 30 years and left recently at 80 years of age . My yearly salary, working 12 hour shifts did not approximate $ 70,000but I always donated to ST jUDE THINKING I WAS HELPING pediatriac cancer patients . Now I see I contributed to a very expensive life style for your upper management employees. Also , there is nepotism.

  2. Kara La'shway
    Apr 23 2019

    I have to ask, how much does Marlo Thomas make per yr for her part in St. Jude’s Hospital Charity?

  3. Apr 23 2019

    The 990 does not report this information.

  4. Ken Hart
    May 13 2019

    We have given faithfully to St Jude for many years now, and I have often shared with others that I feel St Jude is one of the best things we could support. After reviewing the executive and more significant salaries , I must let you know how very disappointed I am with this salary structure. It is very apparent to me that St Jude certainly does not need my support if they can in good conscious pay out these ridiculous salaries . I might also add that I was not able to find Marlo’s salary anywhere. With a posted net worth of 35 million , why would a salary even be considered? My heart goes out to each of the sick children that enter St Jude, but regretfully I cannot find it in my heart to support St Jude from this point on. What an eye opener .

  5. Bill
    Jun 28 2019

    Looks like a nonprofit organization to me……..right!!!

  6. JOHN D WRIGHT
    Jun 30 2019

    WHAT IS ALSAC-DOES ANY ONE ACTUAL KNOW ABOUT IT, THERE SHOULD BE A LAW THAT THE BOTTOM LINE SHOULD BE IN ALL AD’S– PEOPLE DONATE AND LESS THAN 50% GO TO ST. JUDE’S. THEY RAISED 1.5 BILLION AND ST JUDES ONLY RECEIVED 664 MILLION OUT OF IT. OVER THE LAST 40 PLUS YEARS I HAVE DONATED IN EXCESS OF$80,000(MAYBE NOT A LOT TO YOU BUT IT IS TO ME) TO ST. JUDES AND HAVE CONVINCED MANY OF MY FRIENDS AND EXPLOYEE TO DONATE. I BELIEVE THAT GOD HAS A SPECIAL PLACE FOR THESE PEOPLE. I SURE THAT DANNY HAS TURN OVER IN HIS GRAVE. NO MORE DONATES FROM ME

  7. Jun 30 2019

    Many people don’t know about ALSAC, the fundraising arm of St. Jude’s. Most non-profits have three functions: raise money, fund their mission, and manage the mission (which are often referred to as fundraising, program services, and management and general expenses) – all of which are typically done collectively in a non-profit. St. Jude’s separated out the fundraising portion (ALSAC), which is why it is so important to look at the 990’s of both ALSAC and St. Jude Children’s Research Hospital.

  8. JL
    Jul 7 2019

    I, like so many who have voiced disappointment, have always contributed to St. Jude’s. I thought of the children and thought I was helping them. I even sent donations when I was raising 7 children on my husband’s laborer salary. Now I am a recent widow and my income is even less. I cannot express the sadness I feel at learning of the extravagance of the salaries of the upper administrative personnel. I will no longer be donating.

  9. David rogers
    Jul 22 2019

    Guess I’ll stop donations . I need the money more than they do
    They are shameful

  10. Lafawn Lasiter
    Aug 6 2019

    Why is Marlo’s yearly salary not shown? I’m stunned and very angry that salaries, private jets, club membership and other extravagant “things” are paid for by our donations! I gave to this organization for years and it’s nothing more than a scam to get money for their extravagant lifestyle.

  11. Aug 6 2019

    Only the most highly compensated employees are listed.

  12. Andy
    Aug 19 2019

    It’s pretty sad that charities have to pay their execs so much. However, it’s only 0.6% of total contributions. I can live with that if it means kids’ lives are saved. The retained income can be considered an investment in St. Jude’s future; it paid out $157+ million in one year! As far as St. Jude’s salaries go – we can assume the best and brightest medical staff aren’t the cheapest employees.

  13. Aug 19 2019

    Andy:

    1. The % of total contributions is not a very telling tool to understand executive compensation.
    2. The retained income could be considered an investment in St. Jude’s future as a certain amount of the funds will be used for capital expansion. However, the retained income could also be considered a detriment to the many sick children who are not being helped. If an organization has $4 billion (which is more than it takes to run the hospital for years if contributions were zero), is it more important to help 250 sick children and their families or put another $250 million in savings?
    3. The best and the brightest are never the cheapest employees but we’re not just talking about doctors. We are addressing the executives and fundraisers in the organizations who are very well compensated. And, we are addressing contributions to retirement plans: hundreds of thousands of dollars paid annually to many highly compensated employees, along with paid companion travel and health and social club dues (as if these individuals cannot afford to pay their own health and social club dues which leads me to ask: is revenue better spent paying social or health club dues or helping a sick child?).
    4. And, finally it is always important to remember that for every $100 in revenue, ALSAC spends about $29 on fundraising, retains $21 for savings, and only gives the hospital $50 (although last year the number was $44). The hospital spent $43 and put $7 in savings.
    5. You state “they” (who is they?) $157 million was paid out from retained earnings? Where did you get that figure from?
    Instead of accepting the status quo, how about raising your standards and expectations? They do good things but could do so much better.

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