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August 1, 2021

25

Executive Compensation at St Jude (2020)

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): 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 (2019 for the year ending June 30, 2020) submitted by ALSAC and St. Jude to the IRS.

ALSAC

ALSAC is managed by 43 voting members (directors) of the governing body (board of directors) of whom 40 are independent;  30 of the 43 (70%) are male while 13 of the 43 (30%) are female (note: gender identification is not reported on the Form 990 so the numbers are based on names and a google search).

ALSAC reported total revenue of $1.9 billion. They spent $589 million (31% of revenue) on fundraising expenses, gave St Jude’s $975 million (51% of revenue) and put the remaining unspent revenue – $334 revenue – in the fund assets (think savings).

Of the $589 million in fundraising expenses, $190 million was spent on compensation for the 2,188 employees who received an average compensation of $87,000.  426 employees received more than $100,000 with the 9 most highly compensated employees reported to be:

  • $2,324,885:  James R Downing, Ex-Officio Director (compensation from St Jude)
  • $1,020,461:  Richard C Shadyac, CEO and Ex-Officio Director
  • $  667,563:  Emily S Greer, Chief Admin Officer
  • $  641,357:  Robert Machen, COO
  • $  639,896:  Emily Callahan, Chief Marketing and Experience Officer
  • $  610,766:  Anurag Pandit, Chief Investment Officer
  • $  604,578:  Jeffrey T Pearson, CFO
  • $  587,925: Sara Hall, Chief Legal Officer
  • $  578, 784:  George Shadroui, Chief Strategy Officer

6 of the 9 (67%) most highly compensated employees are male while 3 of the 9 (33%)  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.

ALSAC established a non-qualified deferred compensation plan. Payments made during the year were made to:

  • Richard C Shadyac:  $53,589
  • Jeffrey T Pearson:  $46,813
  • Emily S Greer:  $45,373
  • George Shadroui, $39,867
  • Robert Machen:  $38,971
  • Emily Callahan:  $31,526
  • Sara Hall:  $27,950
  • Anurag Pandit:  $18,650

Transactions with Interested Persons include the following:

  • Coury Shadyac, a family member related to Richard C Shadyac, the CEO and Ex-Officio Director, received $192,720 in compensation for employment.
  • Karon Nash, a family member related to Emily S Greer, the Chief Admin Officer, received $80,497 in compensation for employment.
  • Carter Hopkins, a family member related to Bruce B Hopkins, a voting director, received $66,779 in compensation for employment.

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

  • $8.0 million:  Infocision Management Corp, of Akron, OH for call center
  • $6.7 million:  Innerworkings, Inc, of Chicago, IL, for print materials production
  • $5.2 million:  Teksystems, of Atlanta, GA for IT contract labor
  • $5.1 million:  Eaglecom, Inc. of Toronto, Ontario, Canada for media purchasing
  • $3.9 million:  Vaco Memphis, LLC of Brentwood, TN for IT contract labor

ALSAC conducted 144 fundraising events that generated $19 million. After deducting contributions (an IRS requirement) of $10 million, gross income was $9 million.  ALSAC spent $5 million on food, beverages, prizes, rent facilities, and other costs, leaving $5 million in net income to the organization.

It is important to note that Infocision Management Corp, a phone solicitor who operates the call center, was responsible for raising $4.5 million, but charged ALSAC $4.5 million for their services.

To read the ALSAC IRS Form 990 (2018 for the year ending June 30, 2020), click here.

ST JUDE

The governing body for St Jude is the same as ALSAC:  made up of 43 voting members (directors), 40 of whom are independent.  Of the 42 voting members listed on the Form 990, 30 (70%) are male while 13 (30%) are female (note: the Form 990 does not report gender identification so the numbers are based on names and google searches).

St. Jude reported total revenue of $1.2 billion, of which $975 million came from ALSAC. Expenses totaled $1.1 billion (including $93 million in depreciation) leaving approximately $100 million put into fund assets (think savings).

Of the $1.2 billion in expenses, $598 million was used to compensate 5,693 employees who received an average compensation of $105,000.  1,159 employees received more than $100,000 in compensation. The 14 most highly compensated employees were reported to be:

  • $2,324,885:  James R Downing, President, CEO
  • $1,152,340:  Doralina Anghelescu, Faculty
  • $1,020,461:  Richard C Shadyac, Ex-Officio Director (from ALSAC)
  • $1,116,349:  Terrence L Geiger, SVP, Deputy Director
  • $1,115,925:  Mary Elizabeth McCarville, Faculty
  • $1,114,280:  Thomas E Merchant, Chair
  • $  970,261:  Charles M Roberts, EVP, Director, Cancer Center
  • $  967,057:  Mary Anna Quinn, EVP, Chief Admin Officer
  • $  938,048:  Ellis Neufeld, EVP, Clinical Director
  • $  927,522:  Andrew Davidoff, Chair
  • $  823,026:  Carlos Rodriquez-Galindo, EVP, Chair
  • $  705,828:  William E Evans, Faculty/Former President/CEO 
  • $  702,588:  Patricia A Keel, SVP, CFO
  • $  653,845:  James I Morgan, EVP, Scientific Director

10 of the 14 (71%) most highly compensated employees are male while 4 (29%) 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 Anna Quinn received severance payments totaling $277,400.

Transactions between interested person include.

  • Mary Relling, a family member related to William E Evans (former President and CEO) received $553,600 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 $72,240 in compensation for employment.
  • Diane Roberts, a family member related to Charles M Roberts (EVP, Director of the Cancer Center) received $235,900 as compensation for employment.
  • Jeremy Quinn, a family member related to Mary Anna Quinn (EVP, Chief Admin Officer) received $893,781 as compensation for employment.
  • Lynn Rodriguez, a family member related to Carlos Rodriguez-Galindo received $171,007 as compensation for employment.
  • Christopher Robers, a family member related to Charles M Roberts, received $15,903 as compensation for employment.

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

  • $130 million:  Flintco, LLC, of Memphis, TN for construction contractor
  • $  5.8 million:  CS3, Inc., of Bartlett, TN for general contractor
  • $  6.8 million:  Belz Construction Services, of Memphis, TN for construction contractor
  • $  8.2 million:  Methodist Healthcare Memphis, of Memphis, TN for medical services
  • $  6.3 million:  Cerner Corp, of Kansas City, MO for software support

To read the IRS Form 990 for St Jude (for the year ending June 30, 2020), click here.

25 Comments
  1. Dr. Thomas Bell
    May 15 2022

    Salaries are too high for executives. Physicians and caregivers should make more than the CEO and other suites and pencil pushers. I am disappointed and think that Danny would be as well.

  2. Dennis Moe
    Apr 26 2022

    Marlo, your dad, Danny would be ashamed of you and all the vipers @ St. Jude.
    This “charity” is now truly the “Patron Saint of Lost Causes”. God will judge!

  3. Gayle Fishkin
    Apr 19 2022

    I really wondered why the person calling me to donate to St. Jude’s was so angry because I complained I was getting requests for more donations almost every other week, and would not give more money. If I had been smart enough to find this site, I really would have given her an earful. Thank you for the information. Such salaries are disgraceful and should be made more widely public. Now I have to look up every charity who is constantly asking for money.

  4. David Laker
    Mar 25 2022

    So long Marlo! You had me for years but never again. Shame!

  5. Mar 22 2022

    Whats more shocking is how much is spent on fundraising (about $30 out of every $100), that less than half of your donation goes to the hospital and that they have accumulated more than $7 billion in savings, much of which could be for research and to help more sick children and their families…

  6. Carolyn Lehman
    Mar 22 2022

    I was planning on donating; however, after reading these comments, I’ve decided for more research on St. Jude. I, too, was shocked at their high salaries and compensations. I can see both sides of these comments. Money has been the ‘root of all evil’ since Jesus walked the face of the earth! Thank you, God, for healing these precious little ones and the continued good work St. Jude’s researchers are doing.

  7. Jim Coury
    Feb 25 2022

    Public should be aware.

  8. ron
    Feb 20 2022

    $2,324,885.00 = $ 6,369.55 every day of the year or $ $ 265.40 for every hour of the year That is a little above the $ 7.25 per hour minimum wage the government has set for the 40 hour job. ONLY IN AMERICA .

  9. Tom Minimiuchi
    Feb 7 2022

    I donated $50,000 to St. Jude’s. If I could I would sue to get it back.

  10. Marilyn marshall
    Feb 3 2022

    I can no longer donate to st judes seeing how much these greedy people receive
    I don’t care how talented they are the money given is for children to get well and have the opportunity to live not line their shameful pockets
    How do you people sleep at night

  11. Pejinks
    Feb 3 2022

    I was thinking of helping the children but looking at these salaries is absolutely reddish. If is truly unreal that someone gets rich of kids!!!! Shame on you. God takes notice!

  12. Helen Monroe
    Feb 2 2022

    I have donated to St. Jude for years. Did not know how much money goes to executives. Shame on them. I will no longer donate.

  13. Jan 22 2022

    I would highly recommend you read the Form 990 for any non-profit before you donate.

  14. AG
    Jan 21 2022

    Really?? Where are the real charities, without greed? I think I’ll give to….

  15. Mary
    Jan 21 2022

    YES, this is extremely disturbing to see this detail of expenses and how such a small percentage only goes to the organization, it should be helping. ASPCA is another one of the most egregious in this aspect also, and why I will NEVER donate a dime to them.
    QUESTION TO ALL: Does anyone know of any initiative that is trying to change this? To try to improve the donation ratio, outrageous salaries in NP world or anything along these lines?

    It really is a shame to see this type of greed in the NP world. I personally find it hard to donate anywhere these days due to these issues.

    AND to all: beware of TV DTC (direct to consumer) advertising! It is quite expensive……best to look at local NP that you can find out more about to donate.

  16. ROXANNE TAYLOR
    Jan 19 2022

    I agree I was considering a monthly donation to St Jude’s but I saw the salary and nepotism of the Execs I can find someone else who can use the money

  17. Karen
    Jan 11 2022

    If I donated I want to cancel payment. I read comments & I believe the people are right.when the $$$$$ goes to the children then I will donate.that is crazy with the high pay & like what is said ( that’s how the real world is) not in my world.it’s Sapport to be for the kid’s not for them living high on the hug while we try to come up with the $$$$ to donate.we want it to kid’s that’s what it’s ment for not the big wig’s pockets.

  18. Paul Low
    Jan 9 2022

    I call BS! Not no 2.3 million dollars that is absolute BS when our president only makes $400K! I’m no idiot abs I wasn’t born yesterday!

  19. Jan 9 2022

    Although there is some truth to your point – talented people need to be well compensated – you cannot dismiss criticism, accountability, and the call for change just because “this is how the real world operates.”

    Look at the big picture: St Jude (and ALSAC, the fundraising arm) have consistently put hundreds of millions of dollar in the general fund instead of helping more sick children and their families – to the point where the organization has about $8 billion in net assets. In addition, you lack an understanding of how important it is to stand up and demand change. If everyone took your stance, the non-profit world in this country would be worse than what it is.

    It’s never ok to say that something is ok because this is how the real world operates. High salaries, first class travel, business class travel, travel for companions, discretionary spending accounts, residences for personal use, social club dues and initiation fees have no place in the non-profit word and should not be tolerated.

  20. Mike
    Jan 9 2022

    To the negative comments: you lack an understanding of how the real world operates. This is a market-driven society and these salaries are needed to attract the best talent to fulfill the mission of St Jude. These salaries (mostly) are what is appropriate for the talent in place at St Jude to ensure this organization is world-class and a world-leader in research and treatment.

  21. Jan 7 2022

    No, Beverly…93 cents of every dollar donated to the Salvation Army is not used for charitable work. Please read the following posts:

    Where does $1 to the Salvation Army go?

    Why the Salvation Army Should File an IRS Form 990

    The Salvation Army claims the organization is a religious organization and therefore is exempt from filing Form 990’s. I’ve had people tell me they are Catholic, Presbyterian, Mormon, Jewish, Methodist, etc but I have never had someone say to me they are “Salvation Armian.” The Salvation Army wants public dollars but they don’t want to be transparent and disclose how those dollars are spent.

  22. Beverly J Belsha
    Jan 7 2022

    93cents of every dollar donating to the Salvation Army is used for charitable work. I was considering donation to St Judes but after reading the ridiculous salaries paid to the execs, I have reconsidered. I do not believe more than 2 million dollars a year in salary is ever warranted to an exec of a charity organization. I believe St Judes does good work but, I think of how much more could be done if such ridiculous salaries were not paid.

  23. Paul Low
    Jan 6 2022

    I wouldn’t donate one red cent to organization that “rip” the everyday donater off by paying these high priced executives a rediculas amount of money! Marlo, you can take your commercials and go somewhere else, where there are true morons donating! I will not give to the Red Cross, Salvation Army, goodwill or ASACP for the exact same reasons. Instead of actually helping the children, your stealing from the public at a 60 percent rate of what your actually helping the children with and your executives are squandering the donations and living the lap of luxuary! They should be arrested! It’s pathetic, and you better pray you make amends with God before the end comes.

  24. Tiger Express Llc/ Abel Hernandez
    Dec 18 2021

    That’s some high class of panhandling. They should be ashamed of themselves, how can they sleep at night stealing from the children and from the public. They should donate 85% of their salaries to help with medical cost and not be asking for donations anymore. They’re just a bunch of thieves all of them.

  25. RON
    Oct 12 2021

    You have got to be “frigging” KIDDING me by asking me for donations.
    Get those HIGHLY paid execs to cut their compensation by 50%, then I might consider donating.
    This is absolutely asinine (EXTREMELY STUPID AND FOOLISH)

Comments are closed.