Executive Compensation at the March of Dimes (2018)
The March of Dimes continues to endure. For people following the March of Dimes, the past few years have been tough on the organization.
Just 5 years ago the March of Dimes had $75 million in net fund assets and was raising close to $200 million annually, but they were spending more than they raised. Over the next few years, revenue started to decline and the organization went into a negative net fund position because they were spending anywhere from $8-$27 million more than they raised annually, had to fund a pension/post retirement liability, and had losses on investments.
A new president was brought in in 2017 following the retirement of the longtime president but revenue continued to decline in 2017 (to $164 million from $169 million the year before) and more staff cuts were made (total staff of 1,284 were reported in 2017 compared to 1,513 in 2016), first class travel finally appeared to be eliminated (the IRS Form 990 in 2017 shows staff did not fly first class, as in previous years), and the organization cut expenses and did not spend more than they raised. The 1,284 staff were compensated $70 million which equates to an average compensation of $54,300 (compared to an average compensation of $58,200 for the 1,513 employees in 2016). 112 employees received more than $100,000 in compensation.
In 2018, revenue was $141 million, $23 million or 14% lower than in 2017. More staff cuts were made (about 250) bringing total staff to 1,035 who were compensated $65 million, which equates to an average compensation of $62,800 (compared to an average compensation of $54,300 the prior year). So, the March of Dimes employed less people but compensated them more, on average, in 2018. 94 employees received more than $100,000 in compensation (compared to 112 employees the year before).
Expenses in 2018 were $133 million, $8 million less than they raised, which was still not enough to take the organization out of a negative net asset position. In fact, the net fund balance went from a -$11 million to a -$12 million because of $2 million in unrealized losses on investments, and $7 million in pension /post retirement costs.
The 14 most highly compensated employees were:
- $538,473: Stacey D Stewart, President
- $331,343: Paula R Ransom, SVP and Chief Volunteer Officer
- $298,308: Lisa F Waddell, MD, SVP MCH IMP & DEP MED Officer
- $282,501: Frederick A Brogdon, SVP, COO, and Board Officer
- $279,448: David J Hampton II, SVP and Chief Development Officer
- $277,317: Karen E Andrews, EVP and General Counsel (left 6/18)
- $239,238: Nicholas M DiFranza, SVP and Chief Tech Officer
- $238,304: Kelle H Moley, SVP Chief Scientific Officer 5/18
- $230,335: Deborah A Barge, SVP, Market Leadership and Development
- $229,111: Cynthia P Johnson, SVP, Public Policy and Gov’t Affairs
- $217,782: Christopher L Maddocks, SVP, Chief Marketing Officer – left 10/18
- $217,685: Deirdre Maloney, VP Human Resources
- $213,568: Jodi S Patkin, VP, Brand Strategy and Communication
- $174,850: David C Damond, SVP CFO/Asst Treasurer (began 5/18)
The 14 most highly compensated employees received $3.8 million, which equates to an average compensation of $272,000. 9 of the 14 (64%) most highly compensated employees are female while 5 (36%) are male.
The Form 990 (2018) reports that Karen Andrews, the former general counsel, left the organization in June, 2018 and was provided a severance agreement which was executed and returned as part of the agreement. Ms. Andres received 26 weeks of severance pay. These payments were processed on a semi monthly basis in accordance with the previously established payroll schedule and covered the period of June 5th – December 4, 2018 for a rounded total of $145,219.
Stacey D Steward, President received a discretionary, non-fixed bonus payment of $50,000.
73 independent contractors received more than $100,000 in compensation. The five most highly compensated independent contractors were:
- $8,180,369: PEP Direct of Wilton, New Hampshire for Mail House
- $3,057,415: Purpose of NY, NY for video and photo consulting
- $2,063,650: Blackbaud, Inc of Atlanta, Georgia for software hosting
- $1,330,635: Blue State Digital Inc of Chicago, Illinois for email service consultant
- $1,219,033: Direct Donor TV of Bowie, Maryland for development and air time
To read the IRS Form 990 (2018), click here.