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June 22, 2022

32

Executive Compensation at St Jude (2021)

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 77-bed 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 (2020 for the year ending June 30, 2021) submitted by ALSAC and St. Jude to the IRS.

ALSAC

ALSAC is managed by 41 voting members (directors) of the governing body (board of directors) of whom 38 are independent;  28 of the 41 (68%) are male while 13 of the 41 (32%) 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 $2.4 billion (compared to $1.9 million the prior year). They spent $625 million (26% of revenue) on fundraising expenses, gave St Jude’s $997 million (42% of revenue) and put the remaining unspent revenue – $781 revenue – in the fund assets (think savings).

Of the $625 million in fundraising expenses, $182 million was spent on compensation for the 1,939 employees who received an average compensation of $94,000.  469 employees received more than $100,000 with the 10 most highly compensated employees reported to be:

  • $1,558,983:  James R Downing, Ex-Officio Director (compensation from St Jude)
  • $1,068,828:  Richard C Shadyac, CEO and Ex-Officio Director
  • $  693,285:  Emily S Greer, Chief Admin Officer
  • $  666,106:  Anurag Pandit, Chief Investment Officer
  • $  657,794:  Emily Callahan, Chief Marketing and Experience Officer
  • $  645,450:  Robert Machen, COO
  • $  603,398: Sara Hall, Chief Legal Officer
  • $  597,641:  George Shadroui, Chief Strategy Officer
  • $  492,867:  Abed Abdo, CFO
  • $  451,521:  Jeffrey Pearson, Former CFO

7 of the 10 most highly compensated employees are male while 3 of the 10 are female.

The most highly compensated employee was James Downing, who received more than $7 million in compensation over the past 5 years:

  • 2021:  $1,558,983
  • 2020:  $2,324,885
  • 2019:  $1,278,550
  • 2018:  $1,202,948
  • 2017:  $1,087,044

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: $64,529
  • Jeffrey T Pearson:  $8,028
  • Emily S Greer:  $56,229
  • George Shadroui:  $38,017
  • Emily Callahan:  $30,466
  • Sara Hall:  $31,808
  • Anurag Pandit:  $21,732
  • Robert Machen:  $11,523

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

  • $6.8 million:  Infocision Management Corp, of Akron, OH for call center
  • $6.0 million:  Innerworkings, Inc, of Chicago, IL, for print materials production
  • $5.6 million:  Eaglecom, Inc. of Toronto, Ontario, Canada for media purchasing
  • $3.6 million:  Infogroup, of Omaha, NE for marketing and data
  • $3.5 million:  Vaco Memphis, LLC of Brentwood, TN for IT contract labor

ALSAC conducted 153 fundraising events that generated $17 million. After deducting contributions (an IRS requirement) of $8 million, gross income was $9 million.  ALSAC spent $1.4 million on food, beverages, prizes, rent facilities, and other costs, leaving $7.6 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 $4.8 million, but charged ALSAC $4.7 million for their services.

To read the ALSAC IRS Form 990 (2020 for the year ending June 30, 2021), click here.

ST JUDE

The governing body for St Jude is the same as ALSAC:  made up of 41 voting members (directors), 38 of whom are independent.  Of the 41 voting members listed on the Form 990, 28 (68%) are male while 13 (32%) 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, $628 million was used to compensate 5,693 employees who received an average compensation of $110,000.  1,509 employees received more than $100,000 in compensation. The 12 most highly compensated employees were reported to be:

  • $1,558,983:  James R Downing, President, CEO
  • $1,496,461:  Charles M Roberts, EVP, Director, Cancer Center
  • $1,273,466:  Matthew J Krasin
  • $1,068,828:  Richard C Shadyac, Ex-Officio Director (from ALSAC)
  • $1,013,178:  Thomas E Merchant, Chair
  • $1,006,524:  Ellis Neufeld, EVP, Clinical Director
  • $  992,591:  Andrew Davidoff, Chair
  • $  926,569:  Douglas R Green, Chair
  • $  869,393: Ching-Hon Pui, Chair
  • $  862,285:  James I Morgan, EVP, Scientific Director
  • $  852,538:  Patricia A Keel, SVP, CFO
  • $  809,803:  Carlos Rodriquez-Galindo, EVP, Chair

10 of the 12 (83%) most highly compensated employees are male while 2 (17%) are female.

Employee listed above who are also listed as highly compensated employees on the ALSAC list did not receive compensation from both affiliate organizations; they are simply listed on both lists because the organizations are related.

St. Jude’s paid for first class or charter 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, the former EVP and Chief Admin Officer received severance payments and compensation totaling $222,662 (and $277,400 the prior year).

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

  • $139 million:  Flintco, LLC, of Memphis, TN for construction contractor
  • $    6 million. G4S Secure Solutions, of Jupiter, FL for security services
  • $    6 million:  Cerner Corp, of Kansas City, MO for software support
  • $    6 million. Methodist Healthcare Memphis, of Memphis, TN for medical services
  • $    5 million:  Dynamix Group, of Atlanta, GA for software support

To read the IRS Form 990 for St Jude (for the year ending June 30, 2021), click here

To read the IRS Form 990 for ALSAC (for the year ending June 30, 2021), click here.

32 Comments
  1. Jmb
    Jun 11 2023

    I don’t donate where executives earn over 12 million dollars. Put it into the children!

  2. Beall Alina C.
    Mar 25 2023

    IF I UNDERSTAND MOST OF THIS INFORMATION, IT IS HEART BREAKING. MY MOTHER GAVE TO ST JUDES. OUR CHURCH IN MONTGOMERY COUNTY MARYLAND WAS AND STILL IS NAMED AFTER ST JUDES. I WILL LOOK INTO IT MORE THOROUGHLY BECAUSE I DONT WANT TO STOP GIVING TO ST JUDES. I ALSO DONT WANT TO BE PART OF ANYONE RECEIVING AN ALMOST 2 MILLION SALARY. THAT MONEY IS FOR THE CHILDREN, NOT GROWN MEN AND WOMEN.

  3. Jack
    Feb 27 2023

    To put it in perspective, multi billions of dollars are given (by foolish or self-benefitting people) each year, a small portion of which are used to (to some degree) “run” a tiny, 77 bed facility for dying children (who are exploited in commercials) that is not even an exceptional hospital, or leading edge cancer research center? The rest of the money (tax free) is hoarded to make more (tax free) money? Well done, America.

  4. Feb 19 2023

    72% of your donation does not go to program services and it is not a telling statistic because “program services” is not defined. What actually was reported to the IRS is telling: ALSAC raised $2.4 billion in 2021 of which 26% was spent on fundraising, 42% went to the hospital, and 32% was allocated to the general fund.

  5. Scott Inglebritson
    Feb 18 2023

    Only 72% of your donation goes to program services. That is the more telling statistic. Actually, these salaries are fairly low when compared to other corporations, but where does the majority of the other 28% go?

  6. Valentina
    Feb 10 2023

    Deedee; that was my case too.

  7. Valentina
    Feb 10 2023

    As a Struggling Single Mother with a Disabled Child and NO Job, I used to Send Money to St Jude, but when I realized what they DO with that Money; I realized that I just made a fool of myself.

  8. Valentina
    Feb 10 2023

    Why this is Not Headline News in the USA is beyond me!!! In the USA, as a Single Mother and full-time Care taker of a Disabled Person, am denied Welfare Check of Only $369 a month and Food Stamps to Buy Groceries Simply because I cannot Leave my Child ALONE ALL DAY to Go to Work outside of the home, and Most Americans hate people like me for considering Me a Parasite. But Americans Gladly FUND the LUXURY LIFESTYLES of these GREEDY CEOS and PASTORS across America, the biggest Welfare takers in the WORLD.

  9. Feb 9 2023

    You were in the ballpark.

    Still too high for an organization that is supposed to be reducing America’s number 1 cause of death.

  10. Charles W Ables
    Feb 9 2023

    I stand corrected, for the years 20 and 21. However, it did exceed three million in 2019. At least it is headed in the right direction.

  11. Feb 9 2023

    Nancy Brown, the CEO of the American Heart Association received $2.3 million in compensation in 2021 and about $8 million in compensation over the past 3 years:

    2021:  $2,289,308
    2020:  $2,517,493
    2019:  $3,474,435

    However, it’s not a matter of comparison. High executive compensation is high compensation and one can’t justify the other.

  12. Charles W Ables
    Feb 9 2023

    If people think the salaries of the executives at St Jude are ridiculous…take a look at what the CEO of the American Heart Association is raking in each year. Would you believe over three million per year.

  13. Feb 4 2023

    Always best to read the IRS Form 990’s and/or audited financial statements before donating so you know how funds have been spent.

  14. Kay Kuhns
    Feb 4 2023

    I read a negative revue of St Jude’s by former employees. Their advice was to donate to your local children’s hospital instead. This year St Jude’s raised several billion dollars; more than the top ten childrens’ hospitals combined! Our local childrens’ hospital has 289 beds.

  15. Joyce Morrow
    Jan 29 2023

    I realize CEO’s need to be paid for their responsibility – but $1,500.000 a year is ridiculous!!! Plus what all the rest are making!! We thought this was about very sick children? There isn’t a job in the world where anyone needs to make this much money. We’re very disappointed in learning this. We should have looked into this before we agreed to give a certain amount of money every month to St Jude. We trusted St Jude – big mistake. WOW – SHAME ON ALL INVOLVED!!! and don’t come back with – yes but we’re helping children. Just think on how many more children could have been helped with more money not given to greedy CEO’s. They will answer to the Lord for this. The Bible is real clear on what God expects from all of us when it comes to children. We wouldn’t want to be in their SHOES!!

  16. michael russell
    Jan 19 2023

    Pretty hard to get behind St Judes when so many people involved at the highest levels get such e extravagant compensation because deeds speak louder than words and this just proves the greed and avarice of greedy corporate executives. Personally I feel they should be ashamed but I’m sure with their inflated egos they are not

  17. Jan 14 2023

    Before giving to any organization, I highly recommend you review the Form 990 (if the organization is a non-profit) and the audited financial statements (both for profit and not for profit).

  18. Clark Pfluger
    Jan 13 2023

    I shall stop monthly payments. Will look perhaps to MD Anderson.

  19. Kirk
    Jan 12 2023

    I currently just started contributing to Saint Jude but will no longer give because of the many over paid employees at Alsace and Saint Jude. In my opinion an excessive salary is just plan simple robber and greed.

  20. Sara
    Jan 2 2023

    Shame on St. Jude for giving their executives such OUTRAGEOUS and DISGRACEFUL salaries!!! If they would put most of that money toward the children and finding a cure for cancer! I have been donating to St. Jude for 4 years, but no more!!!

  21. Deedee
    Dec 29 2022

    What a shame!! I’d like for these highly paid executives to live off of a monthly salary of less than $800.00!! That’s what my mom receives and she would donate to St. Jude!! Not any more!!!!!! We love and appreciate the work that is done at the hospital, but your salaries need to be adjusted. Put the excessive funds where it belongs, the hospital. The care for the children, the families and research is far more important than your luxurious living. I know I’ve wasted my time by typing this comment, but at least, I feel a little better by saying it. From reading other comments, I’m not alone!!

  22. David
    Dec 24 2022

    I have been contributing to St. Judes for many years and until today and
    I mean …just now I never did any salary research and I have to say you people that make or are even willing to take a salary exceeding $250,000.00 and that is a lot as far as I’m concerned because my wife and I have a household income of $42,000.00 a year !!!!!! and we’ve been sending you $$$$ sorry to say this but unless we receive a news letter informing us of MAJOR salary reductions our $$$ will stay in our pockets .
    I am ashamed of St. Jude’s executives VERY ASHAMED !!

  23. Daniel Tiemeyer
    Dec 24 2022

    We keep what is right, and give what is left. The American Way 2022.

  24. Daniel
    Dec 24 2022

    How can someone convince others to give as if they need it, only to be on a list of incredibly high paid people. They take what is right, and give what is left. I guess they will always want more. Makes me want
    never give another cent.

  25. Dec 22 2022

    Shocking salary statistics for a 77 bed hospital. Paricularly the amount charged for phone solicitation vrs ear ed income.

  26. David
    Dec 22 2022

    That’s why I don’t donate to St Jude.there is no reason to pay outrageous salaries to executives at a charity organization.

  27. Lm whisler
    Dec 12 2022

    Danny Thomas is probably rolling over in his grave at the audacity of the corporate greed in the hospital he founded. Shame on you for this.

  28. Kevin
    Dec 5 2022

    Amazing that a charity has executive salaries that are excessive.

  29. Jim Coury
    Nov 26 2022

    A real turn off.

  30. William F. Russo
    Nov 14 2022

    I have donated to St. Jude Children’s Hospital since 1987, which I have always had a place in my heart for these children and their families. Recently I have been aware of how much these corporate greed executives are making in salaries. Richard C. Shadyac Jr. who is the CEO of FUNDRAISING is making a salary of $1,068,826.00 per year, that is a disgrace! People who may have a problem donating every month with their hard earned money and these greedy executive’s are making millions that should be going to the children and their families.

  31. Nov 12 2022

    Far too much corporate greed !

  32. Dr. Edward Yan
    Jun 24 2022

    Infocision Management Corp, a phone solicitor who operates the call center, was responsible for raising $4.8 million, but charged ALSAC $4.7 million for their services. Corruption or mismanagement? I can’t make donation to St. Jude.

Comments are closed.