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August 1, 2021

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.

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