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December 22, 2020

27

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.

Click on “Executive Compensation at St Jude (2020)” for an update.

27 Comments Post a comment
  1. Eva quackenbush
    Nov 24 2021

    …a hospital with 73 beds ? That’s a lotta money !
    ( I doubt this was,the intent of Danny Thomas when he founded St Judes .

  2. Nov 11 2021

    A post addressing executive compensation at Kaiser Health was previously posted:

    https://paddockpost.com/2019/09/20/executive-compensation-at-kaiser-health/

  3. DWAYNE CLINTON MARTIN
    Nov 10 2021

    Let me invite you to visit the list of Kaiser Health executive pay, if you consider this disgraceful. The highest paid executive at Kaiser Health gets $10M+ and the second highest gets $5M+. Just think, the more they make the more they have to donate to charities! 10% of $250,000 is $25,000, but 10% of $2,500,000 is $250,000!

  4. Tom Wall
    Oct 22 2021

    Sounds like a few too many pigs at the trough. First class travel with companion does not help sick kids.

  5. Bruce Dehanke
    Oct 13 2021

    I donate on a regular basis. I was upset to read how much was spent on printed materials, almost 7 million annually. Also, many head staff employees with HUGE compensatory packages. Just seems like this should be reviewed and more concentration and funds dedicated to the children whom are in dire need for cure. This is why we contribute.

  6. Peter Murray
    Oct 9 2021

    You shower of robbers and exploiters.

  7. Oct 8 2021

    No, 82% does NOT go to the children and this is not in line with other charities. Did you read the post? The Form 990? Nearly 30% goes towards fundraising and although you can argue fundraising “goes to the children,” it does not; it goes towards raising money. About 20% goes into savings and although you can argue savings “goes to the children,” (and some of it does through capital projects), you have to consider how much is put into savings annually (hundreds of millions of dollars which could go towards helping more sick children and their families). Look at how much has been put into savings over the past 10 years compared to how much has been spent on capital projects. How about they consider expanding their treatment to help more sick kids rather than growing their savings by billions (which is what they have done). And, finally look at how much goes to the hospital (about 50% annually) and the hospital has historically spent about 43% of that 50%, putting the rest into savings…yet, more put into savings instead of helping more children.

  8. mary mcintyre
    Oct 7 2021

    82 % goes to children This is line with other charities. Yes, there is always pork, sadly.

  9. Lynn Davis
    Oct 3 2021

    You should all be ashamed of yourself how despicable. I’m not sure most of things you do or even legal. Corporate greed makes me sick. I know there’s not one of you that actually believes they earn the salaries. Salaries isn’t half the problem it’s the extravagant parties Private flights and all the rest of the perks that you think you’re entitled to. You’re a disgusting bunch.

  10. Tam Vo
    Sep 19 2021

    This is scam, take advantage of the big hearted people, use sick kids to make money.

  11. Sep 18 2021

    It’s not just the CEO (he had more than 2,000 employees working on fundraising in 2019) and the executive staff compensation packages from BOTH organizations (ALSAC and St. Jude).

    ALSAC’s sole purpose is to raise funds for St. Jude. In 2019, ALSAC spent more than $500 million on fundraising expenses so saying you would gladly pay a CEO $1 million does not accurately describe the fundraising machine at ALSAC. Historically, ALSAC has spent nearly 30% of every dollar raised annually on fundraising – look back at the Form 990’s over the past 10 years. But, it’s also how much money is put in the general fund instead of helping more sick children……….

  12. bob
    Sep 16 2021

    For a CEO to make a million $$ that raises $1.9 billion; does not seem out of line at all.
    I would gladly pay $1,000,000 in salary to a CEO who will bring in $2,000,000,000.

  13. David Wood
    Sep 15 2021

    Thought I was helping sick children and their families. Disgusted by the info on salaries, fund raising expenses, contractor payments, etc. Very disappointed. No more contributions from me.

  14. Jon
    Aug 30 2021

    No more contributions from me, shame on you.

  15. george e grabenstetter
    Aug 14 2021

    This is out of control the salary of CEO and etc whatever their titles are. It seems there is layering of their duties and some need to be eliminated. I agree with the above comment that $250,000.00 is the top a chief officer should receive. Sorry the children will not be taken care of.

  16. Tom & Pat Goodwin
    Aug 3 2021

    We were going to start sending $20 per month until we read ridiculous compensation the management and their family are receiving from contribution meant to help aid research and care of sick children.
    The management feel it a fare compensation , should be in agreement to have compensation posted in lobbies of all clinics and the hospital .

    Needless to say as Pensioner we will not be contributing to management ridiculous compensation .

  17. J C Law
    Jul 18 2021

    why not let public see on your comericals what the top 15 people make at that hospitl half million or more I dont mind giving but im not payiny someone 200 times what your donors are making

  18. Rob
    Jun 30 2021

    Same happens in all charity institutions as good will or United way e.g

  19. Jani
    Jun 25 2021

    I gave as a partner in hope for many years. I stopped my monthly payment about 2 years ago and was about to restart it today until i saw these obscene salaries. I will NOT be restarting my contributions. People sacrificing the life of children to get rich make me ill. Only in America

  20. Anne Regner
    Jun 16 2021

    I had planned to leave my assets to charity but reading about the outrages compensations of VP’s, executives etc is sickening and I am changing my mind. The ‘non profits’ own enrichment seems to be foremost in their motivation. Instead of showing pictures of sick children, they should show the executive mansions and mention the huge endowment paid for by poor people’s contributions. Count me out.

  21. Anne Regner
    Jun 16 2021

    I had planned to leave my assets to charity but reading about the outrages compensations of VP’s, executives etc is sickening and I am changing my mind. They are in business for their own enrichment, the aid to the needy is a mere afterthought. Instead of showing pictures of sick children, they should show the executive mansions paid for by poor people’s contributions.

  22. Gary Frers
    May 21 2021

    First let me commend the idea of St Jude helping children, but when you say non-profit, there’s apparently a lot of profit going to all these overpaid executives and their family members, that could and should be going to help more children. Shame on yourselves for taking all these sacrifices made by everyday people and turning them into a outrageous payday for yourselves. And you wonder why people are reluctant to donate to charities, even when they claim to be non-profit. I hope people will keep exposing you for the liars you are I hope the fact checkers keep on exposing you and you have to be held accountable for stealing this money from the kids it was meant for.

  23. James Day, M.D.
    Apr 24 2021

    I am a retired physician for 8 years and highest income in last year of $160,000 These CEO’s, COO’s and others with these ridiculous salaries don’t work any harder than me and didn’t have my 14 years of higher education, is a veteran during Viet Nam, and today I call and stop my many years of monthly $19 contributions. You don’t need more money but more morals that aren’t able to be purchased

  24. Nurse Brown
    Apr 17 2021

    Salaries at all charities should be capped. $250,000 will give you a great lifestyle in any city. Doing work you love and a comfortable salary is a GREAT compensation package. I wish we had video of the board meeting where they discuss the justification for these obese numbers. Has greed reared its ugly face at this accomplished and storied organization? What would Danny Thomas say?

  25. Larry Haney
    Mar 19 2021

    After reading the ridiculous salaries being taken by the CEO and everyone below, I have changed my mind on donating $19.00 a month. Perhaps the CEO and the rest of the staff should read the comments made and make a change. It is so sad that these people would take money from these extremely sick children, who so desperately need more research to save their lives. I intend to let everyone that I know how donations are used and not to donate to St. Jude’s. Put in the pockets of the CEO and all of the other people taking these absorbent salaries.
    Danny Thomas is rolling over in his grave!

  26. 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

  27. 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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