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December 22, 2020

2

Executive Compensation at St. Jude (2019)

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 (2018 for the year ending June 30, 2019) submitted by ALSAC and St. Jude’s to the IRS.

ALSAC

ALSAC reported total revenue of $1.9 billion. They spent $515 million on fundraising expenses, gave St Jude’s $865 million and put the remaining unspent revenue – $520 revenue – in the fund assets (think savings).

Of the $515 million in fundraising expenses, $174 million was spent on compensation for the 2,105 employees who received an average compensation of $83,000.  372 employees received more than $100,000 with the 9 most highly compensated employees reported to be:

  • $1,228,750:  James R Downing, Ex-Officio Director (compensation from St Jude)
  • $  958,886:  Richard C Shadyac, CEO and Ex-Officio Director
  • $  608,503:  Emily S Greer, Chief Admin Officer
  • $  580,858:  Emily Callahan, Chief Marketing and Experience Officer
  • $  565,834:  Jeffrey T Pearson, CFO
  • $  559,965:  Robert Machen, COO
  • $  554,900:  Sue Harpole, Chief Development Officer
  • $  544,317:  Anurag Pandit, Chief Investment Officer
  • $  536,339:  Sara Hall, Chief Legal Officer

5 of the 9 most highly compensated employees are male while 4 are female. It is important to note ALSAC is managed by 44 directors with 41 being independent according to the Form 990. However, Part VII, Section A lists 42 voting directors, 29 (69%) of whom are male, while 13 (31%) are female.

ALSAC paid for travel for companions. For more information, see Schedule J, Part III, Supplemental Information on the Form 990.

ALSAC paid for health or social club dues or initiation fees. For more information see Schedule J, Part III, Supplemental Information on the Form 990.

Transactions with Interested Persons include the following:

  • Coury Shadyac, a family member related to Richard C Shadyac, the CEO and Ex-Officio Director, received $173,953 in compensation for employment.
  • Karon Nash, a family member related to Emily S Greer, the Chief Admin Officer, received $79,464 in compensation for employment.
  • Carter Hopkins, a family member related to Bruce B Hopkins, a voting director, received $58,127 in compensation for employment.

46 independent contractors received more than $100,000 in compensation. The five (5) most highly compensated independent contractors were reported to be:

  • $6,798,601:  Innerworkings, Inc, of Chicago, IL, for print materials production
  • $6,030,933:  Infocision Management Corp, of Akron, OH for call center
  • $5,141,901:  Vaco Memphis, LLC, of Brentwood, TN for IT contract labor
  • $3,715,603:  Eaglecom, Inc, of Toronto, Ontario, Canada, for media purchasing
  • $3,423,791:  Teksystems, of Atlanta, GA for IT contract labor

ALSAC conducted 157 fundraising events that generated $30 million. After deducting contributions (an IRS requirement) of $11 million, gross income was $19 million.  ALSAC spent $7 million on food, beverages, prizes, rent facilities, and other costs, leaving $12 million in net income to the organization.

To read the ALSAC IRS Form 990 (2018 for the year ending June 30, 2019), click here.

ST JUDE’S

The governing body for St Jude’s is made up of 44 voting members, 41 of whom are independent.  Of the 42 voting members listed on the Form 990, 29 (69%) are male while 13 (31%) are female.

St. Jude’s reported total revenue of $1.1 billion, of which $865 million came from ALSAC. Expenses totaled $1 billion (including $90 million in depreciation) leaving approximately $100 million put into the fund assets (think savings).

Of the $1 billion in expenses, $546 million was used to compensate 5,440 employees who received an average compensation of $100,000.  1,006 employees received more than $100,000 in compensation. The 14 most highly compensated employees were reported to be:

  • $1,278,550:  James R Downing, President, CEO
  • $  958,886:  Richard C Shadyac, Ex-Officio Director (compensation from ALSAC)
  • $  953,550:  Thomas E Merchant, Chair
  • $  930,506:  Charles M Roberts, EVP, Director, Cancer Center
  • $  905,643:  Ellis Neufeld, EVP, Clinical Director
  • $  894,700:  Andrew Davidoff, Chair
  • $  845,463:  David Ellison, Chair
  • $  777,662:  Ching-Hon Pui, Chair
  • $  774,512:  Carlos Rodriquez-Galindo, EVP, Chair
  • $  774,340:  James I Morgan, EVP, Scientific Director
  • $  755,848:  Amar J Gajjar, Chair
  • $  722,617:  William E Evans, Faculty/Former President/CEO
  • $  680,879:  Patricia A Keel, SVP, CFO
  • $  524,962:  Mary Anna Quinn, EVP, Chief Admin Officer

11 of the 14 (79%) most highly compensated employees are male while 3 (21%) are female.

St. Jude’s paid for first class travel. See Schedule J, Part III, Supplemental Information for more detail.

St. Jude’s paid for companion travel. See Schedule J, Part III, Supplemental Information for more detail.

St Jude’s made gross up payments and tax indemnifications. See Schedule J, Part III, Supplemental Information for more detail.

Mary Relling, a family member related to William E Evans (former President and CEO) received $529,674 as compensation for employment.  It is unclear why Mary Relling is not listed above as one of the most highly compensated employees.

Susanna Downing, a family member related to James R Downing (President and CEO) received $71,398 in compensation for employment.

Diane Roberts, a family member related to Charles M Roberts (EVP, Director of the Cancer Center) received $221,400 as compensation for employment.

Jeremy Quinn, a family member related to Mary Anna Quinn (EVP, Chief Admin Officer) received $87,543 as compensation for employment.

270 independent contractors received more than $100,000 in compensation. The five (5) most highly compensated employees were reported to be:

  • $93,282, 711:  Flintco, LLC, of Memphis, TN for construction contractor
  • $ 7,676,755:  CS3, Inc., of Bartlett, TN for general contractor
  • $ 7,621,080:  Belz Construction Services, of Memphis, TN for construction contractor
  • $ 6,601,217:  Methodist Healthcare Memphis, of Memphis, TN for medical services
  • $ 6,424,547:  Microsoft Corporation, of Redmond, WA for software support

To read the IRS Form 990 for ALSAC (2018 for the year ending June 30, 2019), click here.

To read the IRS Form 990 for St. Jude (2018 for the year ending June 30, 2019), click here.

2 Comments Post a comment
  1. Dec 27 2020

    As my heart was moved by the advertisements of disabled children on TV, I set down to start giving a $19.00 MONTHLY gift. I am on social security and this is a sacrifice for me. As I read the disgraceful list of top employees salaries, I’ve decided they don’t need my small sacrifice at all. This is disgraceful to say the least. Ron S

  2. Tom C
    Dec 22 2020

    This is an absolute disgrace. While they tear jerk you with their manipulative commercials here they are earning excessive salaries and spending cash on first class flights. Not to mention the nepotism!

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