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October 2, 2019

27

Executive Compensation at St. Jude’s (2018)

by Anne Paddock

When people think of St. Jude’s, they often associate the organization with the children’s research hospital but St Jude’s is actually two organizations:

  • St. Jude Children’s Research Hospital (St Jude’s): the children’s hospital that provides research and medical care; and
  • American Lebanese Syrian Associated Charities (ALSAC): the fundraising arm; an organization that exists to raise funds for St. Jude’s

Although most non-profits do not separate fundraising from services, St. Jude’s does, so both organizations need to be analyzed because St. Jude’s relies on ALSAC for the majority of it’s revenue and has a beneficial interest in the organization.

The following information is based on the most recent Form 990’s (2017 for the year ending June 30, 2018) submitted by ALSAC and St. Jude’s to the IRS.

ALSAC

ALSAC raised $1.652 billion (about $150 million more than the previous year), most of which came from contributions ($1.5 billion) and investment income/gain on the sale of assets ($150 million).

Total expenses for ALSAC were $1.240 billion, of which $757 million (46% or $46 out of every $100 in revenue) was given to the hospital (St. Jude’s) for operational and capital budget needs. ALSAC spent $483 million (29% or $29 out of every $100) on functional expenses related to fundraising (the mission of ALSAC) and retained $412 million (25% or $25 out  of every $100 in revenue) for the general fund (which some people refer to as the endowment).

So, the bottom line is: If you donated $100, $46 was given to the hospital, $29 was spent on organizational expenses at ALSAC (with the purpose of fundraising) and $25 was put into savings (which grew from $4.1 billion at the beginning of the year to $4.7 billion at year-end because ALSAC didn’t spend as much as they received and because of net unrealized gains on the sale of assets).

Functional expenses include compensation for the 1,818 employees (179 more employees than the year before) of ALSAC whose purpose is to raise funds for the hospital. The 1,818 employees were compensated $153 million which equates to an average compensation of $84,400 each. However, 295 employees of ALSAC received more than $100,000 in compensation. The nine (9) most highly compensated individuals were reported to be:

  • $1,202,948:  James Downing, Ex-Officio Director (compensation from St. Jude’s)
  • $  893,589:  Richard C Shadyac, Jr.:  CEO and Ex-Officio Director
  • $  575,408:  Emily S Greer, Chief Administrative Officer
  • $  550,757:  Emily Callahan, Chief Marketing Officer
  • $  545,573:  Jeffrey T Pearson, Chief Financial Officer
  • $  506,710:  Sue Harpole, Chief Development Officer
  • $  532,140:  Robert Machen, Chief Information Officer
  • $  510,440:  Anurag Pandit, Chief Investment Officer
  • $  499,043:  George Shadroui, Chief Strategy Officer

As illustrated above, 9 employees received total compensation of $5.8 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’s 

St Jude’s reported total revenue of $981 million ($80 million more than the prior year) which came from four (4) sources:

  • ALSAC provided $757 million (or 77% of the revenue reported);
  • Patient Care (primarily insurance companies) provided $117 million (or 12% of revenue reported);
  • Government grants provided $83 million or 9% of revenue reported); and
  • Other sources (royalties, cafeteria, vending machines, etc) provided $24 million (or 2% of revenue reported).

Total expenses for St Jude’s were $951 million, which includes $506 million paid in compensation to the 5,185 employees (256 more than the previous year), which equates to an average compensation of $97,600. However, 887 employees received more than $100,000 in total compensation. The 14 most highly compensated employees were reported to be:

  • $1,365,679:  Andrew Davidoff, Chair
  • $1,202,948:  James Downing, President and CEO, Ex-Officio Director
  • $1,016,649:  Raul C Ribiero, Faculty
  • $  944,564:  Charles M Roberts, EVP/Director Cancer Center
  • $  929,491:  Ellis Neufeld, EVP, Clinical Director
  • $  912,661:  Stephen W White, Chair
  • $  893,589:  Richard Shadyac, Ex-Officio Director (compensation from ALSAC)
  • $  889,939:  Thomas E Merchant, Chair
  • $  884,005:  Charalampos Kalodimus, Chair
  • $  845,380:  Mary Anna Quinn, EVP/Chief Admin Officer
  • $  748,857:  Carlos Rodriguez-Galindo, EVP/Chair
  • $  722,490:  William E Evans, Faculty and Former President and CEO
  • $  718,114:  Pat Keel, SVP/CFO
  • $  597,847:  James I Morgan, EVP/Scientific Director

As illustrated above, the 14 most highly compensated employees received $12.7 million.  Of the 14 most highly compensated employees, 12 (86%) are male while 2 (14%) are female.

The 990 also reports:

The organization paid for first class or charter travel, companion travel and tax indemnification and gross up payments (for more detail see Schedule J, Part III of the 990).  In a non-profit where the decision is whether to pay for first class or charter travel, companion travel and tax indemnification/gross up payments OR help more sick children and their families, the answer should always be to help more sick children and their families.

In addition:

Payments were made to two employees under the non-qualified deferred compensation plan during the year:

  • $565,425 to Raul C Ribiero
  • $412,456 to Stephen W White

Business transactions involving interested persons include:

  • Mary Rellings (compensation of $521,401) is related by family to former officer, President, and CEO, William E Evans (compensation of $722,490)
  • Susanna Downing (compensation of $59,348) is related by family to James R Downing (compensation of $1,202,948)
  • Diane Roberts (compensation of $212,895) is related by family to Charles M Roberts (compensation of $944,564)
  • Jeremy Quinn (compensation of $73,845) is related by family to Mary Anna Quinn (compensation of $845,380)

Finally, it is important to point out St. Jude’s reported a large increase ($643 million) in net assets from $4.659 billion at the beginning of the year to $5.302 billion at year-end, that is not explained by the difference ($30 million) between total revenue and total expenses. In Schedule O of the Form 990, a $613 million increase in net assets is explained as a “change in interest in unrestricted net assets of ALSAC.” No other detail is provided.

The bottom line is that St. Jude’s endowment is at a record high of $5.3 billion (note:  In 2013, net assets were $2.4 billion: in 6 years, net assets or what some people refer to as the endowment have more than doubled).  Given that the hospital’s operating expenses are about a billion annually, there is more than enough funds to keep the hospital operating  for years if all donations ceased (which is highly, highly unlikely).  The question begs:  When are they going to stop allocating hundreds of millions of dollars annually to the endowment and expand their services to help more sick children and their families?

To read additional information (Top Ten Financial Tips to Know About St Jude’s), click here.

To read “Where Does $100 to St. Jude’s Go (2018), click here.

To read the IRS Form 990 (2017) for ALSAC for the year ending June 30, 2018, click here.

To read the IRS Form 990 (2017) for St Jude’s for the year ending June 30, 2018, click here.

27 Comments Post a comment
  1. Mark Keck
    Dec 19 2019

    With so many sick children and their struggling families today, I don’t understand why St. Jude and and ALSAC are paying their top ten to 15 employees in each organization from 500,000 to over 1,365,000 dollars. How can you ask anyone to donate to the St. Jude’s organization while you are paying hundreds of your employees over $100,000 a year. I can’t believe that your top leaders can accept a million dollar plus salary knowing that this is money that could be given back to help so many more children and families that are facing some of our worst fears. 18.5 million dollars paid to your top 23 employees during 2017 that’s sad because how many children died that could have used your help but didn’t?

  2. Ginger Granger
    Dec 22 2019

    I cannot comprehend what a person does that warrants such HUGE payrolls. MORE FOR THE CHILDREN IF YOU PLEASE. I will no longer be donating, another place off my list. How sad.

  3. Ethelda Sears
    Dec 30 2019

    I am totally disappointed with how donations are handled by St Jude, ALSAC, family members, etc. More children could be helped with the billions in “endowment”. So totally sorry to hear
    that an organization that I respected so much is just spreading the wealth to certain people
    and not using available funds to increase available care for the children. How can Marlo
    Thomas get on television and beg for funds for the children so desperately when only a small portion of each dollar actually goes to the original idea of St Jude. Sad, sad, sad…

  4. Bonnie Lozowick
    Jan 17 2020

    Did Donald Trump or his family have any financial interaction with St. Jude or charities associated with St. Jude?
    Thank you

  5. Donald E geib
    Jan 17 2020

    I am so mad about the level of payment that the top 9 people are given that I will not give my $250+ every year.

  6. Jan 18 2020

    I don’t know. That information is not revealed on the Form 990.

  7. John Veristo
    Feb 24 2020

    While it’s certainly true that these are very high salaries, it’s important to compare them to salaries for similar positions at other top level research institutes. Many places pay their top executives well in excess of $1-million. So these salaries really aren’t out of the ballpark for these types of positions. In order to recruit the best people St Jude probably needs to pay salaries that are competitive. Another thing to consider is that a lot of the most cutting edge biomedicine/science is done on the east and west coast. If someone has a job offer from MIT, Harvard or Stanford it’s probably not that easy to recruit them down to Memphis. I certainly agree that there should be some kind of cap so salaries don’t get ridiculous, but it’s also important to remember that these are jobs that often require people to work 100+ hours a week and be constantly reachable for administrative issues. Also I don’t think these salaries would affect patient care, St. Jude will still treat all children that are affected by the diseases that they study for their entire life free of any fees, and also pay for travel and accommodations related to their treatment. So while these salary numbers may offend many peoples sensibilities I think the more important thing is that St. Jude hires the very best people that they can.

  8. Feb 25 2020

    Yes, the salaries of the doctors are high and yes, St. Jude’s does need to recruit talent. However, the post isn’t just about doctor’s salaries; it’s also about the salaries at ALSAC (the fundraising arm) who employs more than 1,600 employees, and that ALSAC paid for companion travel and health and social club dues or initiation fees, and that St Jude also paid for companion travel and provided tax indemnification and gross up payments, and provided several employees with hundreds of thousands of dollars in a non-qualified deferred compensation plan. I can’t help but think that donations would be better spent on helping a sick child and his/her family than paying for companion travel, health club and social club dues or initiation fees, and other perks for employees who receive these generous compensation packages.

    What’s most important is that St. Jude and ALSAC maximize donor’s generous donations by using as much revenue as possible to help sick kids and their families.

  9. bruce simpkins
    Feb 26 2020

    This is a crying shame !!! Will never donate to you!!! Nobody should get paused the amounts here!! SHAME ON YOU ALL!!!!

  10. Ann Lessar
    Mar 1 2020

    I was already to write a check to St. Judes untill I decided to look at the top peoples compensation, tore up check. Please take me of your mailing list.

  11. Bill Bailey
    Mar 29 2020

    With people making well over $100,000 a year, why don’t they have to pay their own companion travel and health or social club dues or initiation fees?

  12. Joseph hill
    Apr 16 2020

    That’s why I quit sending fund’s because I feel that my money can do more than paying rediculus amount on payroll I do understand it’s cost to run a organization but no exzective should be paid at high rate for a non profit organization it’s a bunch of bull

  13. Joseph Wayne Hill
    Apr 16 2020

    I sent 200$ every month to St Jude for 20 yrs because of this bull I will no longer send a penny to them if I send anything to anyone I will find a family in need.

  14. Robert Mills
    Apr 25 2020

    Executive greed taking, not giving as I have for years from social security, my only income, is so absurd it appears unreal.How could anyone take so much from dying children? I refuse to continue helping executive millionaires build their bank accounts while children in need are sick and dying. SHAME, SHAME, SHAME. Remove my name from your records.
    Robert Mills

  15. Harry Mobley
    Apr 26 2020

    For years I have done some donations most years to St Judes . I opened this to set up a monthly $25 donation. However, after seeing the breakdown showing the extremely high compensations and even worse, the UNGODLY amount that ALSAC retains, I don’t see a way that I can donate. If you can show me a way to donate to St Judes without funding ALSAC I will be happy to make regular donations.

  16. Carol
    May 30 2020

    With sadness I will not be donating to Saint Jude. I am utterly sick and nauseated by the greed of your executives not only do they get the salary they get they get memberships to clubs travel expenses for their spouses this is a actually a greedy rape of donations no more no more you are the most disgusting I am sad I have tried to get everybody to give to Saint Jews tell him how wonderful it is and I’m sure it is but not with the agreed of your executives and why is Marlo Thomas not included does she get paid that’s all I want to know. NO NO MORE!!!!!! Please stop sending begging for gifts for these poor children when you were taking the money. I know this will not affect because when you were as greedy as self-serving as you are from somebody that has been sending you for your health clubs and your travel and your fun.

  17. May 31 2020

    Marlo Thomas is not included on the most highly compensated employees list because she is not a highly compensated employee.

  18. Rick
    Jun 11 2020

    I have been donating to St Jude for over 20 years,I will not give any longer after reading this . Paying dues for clubs for millionaires, unbelievable you cannot trust anybody, using Children’s Cancer to swim in gold.

  19. Bill Bewitz
    Jun 26 2020

    So how much $$$$ does Marlo Thomas receive. I can not see her compensation no matter how I ask.

  20. Jun 27 2020

    The Form 990 requires those making more than $150,000 to be listed. Marlo Thomas is not on the list.

  21. Jeff Faulkner
    Jul 1 2020

    Right on , AND PAYING for the commercials they exploit the little kids to suck in money for them Crooks . NON – PROFIT ? Its a disgrace , and THEY arent the only ones with same compensation structure ,salaries , expenses and how many employees?? Tunnel to Towers is the next one you should look at . You donate your buying the commercials and BIG WIGS steak dinners !!!

Trackbacks & Pingbacks

  1. Executive Salaries at St. Jude’s (2017) | Paddock Post
  2. Where does $100 to St. Jude’s Go? | Paddock Post
  3. Executive Salaries at St. Jude’s | Paddock Post
  4. Where does your $1 to St. Jude Children’s Research Hospital Go? | Paddock Post
  5. $19 a Month to St. Jude’s: How Much Goes to the Kids | Paddock Post
  6. Where Does $100 to St. Jude’s Go (2018)? | Paddock Post

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