Executive Compensation at St Jude (2023)

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 73-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 (2022 for the year ending June 30, 2023) submitted by ALSAC and St. Jude to the IRS.

ALSAC

ALSAC is managed by 37 voting members (directors) of the governing body (board of directors) of whom 35 are independent;  27 of the 37 (73%) are male while 10 of the 37 (27%) are female (note: gender identification is not reported on the Form 990 so the conclusions are based on names and a google search).

ALSAC reported total revenue of $2.7 billion (compared to $2.9 billion in 2022 and $2.4 million in 2021). They spent $836 million (31% of revenue) on fundraising expenses, gave St Jude’s $1.4 billion (51% of revenue) and put the remaining unspent revenue – $500 million (18% of revenue) – in the fund assets (think savings).

Of the $836 million in fundraising expenses, $232 million was spent on compensation for the 2,109 employees who received an average compensation of $110,000.  614 employees received more than $100,000 with the 13 most highly compensated employees reported to be:

• $1,851,107:  James R Downing, Ex-Officio Director (compensation from St Jude)
• $1,361,911:  Richard C Shadyac, CEO and Ex-Officio Director
• $  760,141:  Anurag Pandit, Chief Investment Officer
• $  737,739:  Emily Callahan, Chief Marketing and Experience Officer
• $  683,074:  Sara Hall, Chief Legal Officer
• $  646,692:  Ikshit Anand, COO
• $  644,221:  Melanee Hannock, Chief Digital and Innovation
• $  641,248:  Steve Froehlich, Chief Revenue Officer
• $  635,717:  George Shadroui, Chief Strategy Officer
• $  574,900:  Martin Hand, Chief Donor Officer
• $  532,724:  Kera Wright, CFO
• $  344,166:  Abed Abdo, CFO (thru 1/22)
• $  306,680:  Emily Greer, Former Officer

8 of the 13 most highly compensated employees are male while 5 of the 13 are female.

The most highly compensated employee was James Downing, who received $1,9 million in 2023.  The 13 most highly compensated employees received $46 million from 2017-2023 (note:  highly compensated employees in 2017-2022 but not in 2023 are not included below):

James Downing:  Total Compensation 2017-2023:  $11 million

• 2023:  $1,851,107
• 2022:  $1,546,372
• 2021:  $1,558,983
• 2020:  $2,324,885
• 2019:  $1,278,550
• 2018:  $1,202,948
• 2017:  $1,087,044

Richard Shadyac:  Total Compensation 2017-2023:  $8 million

• 2023:  $1,361,911
• 2022:  $1,091,665
• 2021:  $1,068,828
• 2020:  $1,020,461
• 2019:  $  958,886
• 2018:  $  893,589
• 2017:  $  868,643

Emily S Greer:  Total Compensation 2017-2023:  $4 million

• 2023:  $306,680
• 2022:  $670,666
• 2021:  $693,285
• 2020:  $667,563
• 2019:  $608,503
• 2018:  $575,408
• 2017:  $542,741

Anurag Pandit:  Total Compensation 2017-2023:  $4 million

• 2023:  $760,141
• 2022:  $710,135
• 2021:  $666,106
• 2020:  $610,766
• 2019:  $544,317
• 2018:  $510,440
• 2017:  $471,938

Emily Callahan:  Total Compensation 2017-2023:  $5 million

• 2023:  $737,739
• 2022:  $707,253
• 2021:  $657,794
• 2020:  $639,896
• 2019:  $580,858
• 2018:  $550,757
• 2017:  $514,395

Melanee Hannock:  Total Compensation 2022-2023:  $1 million

• 2023:  $644,221
• 2022:  $611,100

Steve Froelich:  Total Compensation 2023:  $0.6 million

• 2023:  $641,248

Sara Hall:  Total Compensation 2017-2023:  $4 million

• 2023:  $683,074
• 2022:  $645,902
• 2021:  $603,398
• 2020:  $587,925
• 2019:  $536,399
• 2018:  Not Listed
• 2017:  $454,251

George Shadroui:  Total Compensation 2017-2023:  $4 million

• 2023:  $635,717
• 2022:  $625,606
• 2021:  $597,641
• 2020:  $578,784
• 2019:  Not Listed
• 2018:  $499,403
• 2017:  $447,309

Martin Hand:  Total Compensation 2023:  $0.6 million

• 2023:  $574,900

Kera Wright:  Total Compensation 2022-2023:  $1 million

• 2023:  $532,724
• 2022:  $435,980

Abed Abdo:  Total Compensation 2021-2023:  $1 million

• 2023:  $344,166
• 2022:  $512,860
• 2021:  $492,867

Ikshit Anand, COO:  Total Compensation 2023:  $1 million

• 2023:  $646,692
• 2022:  $572,309

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:

• Emily S Greer:  $194,467
• Emily Callahan:  $23,282
• Abed Abdo:  $737

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

• $10 million:  Internal Data Resources, of Alpharetta, GA for IT contract labor
• $7 million:  Infocision Management Corp, of Akron, OH for call center
• $8 million:  Eaglecom, Inc. of Toronto, Ontario, Canada for media purchasing
• $8 million:  Vaco, of Brentwood, TN for IT contract labor
• $5 million:  Data Axle D(Infogroup), of Omaha, NE for marketing and data

ALSAC conducted 175 fundraising events that generated $33 million. After deducting contributions (an IRS requirement) of $16 million, gross income was $17 million.  ALSAC spent $10 million on food, beverages, prizes, rent facilities, and other costs, leaving $7 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 $5.6 million, but charged ALSAC $14.4 million for their services.

To read the ALSAC IRS Form 990 (2022 for the year ending June 30, 2023), click here.

ST JUDE

The governing body for St Jude is made up of 37 voting members (directors), 35 of whom are independent.  Of the 37 voting members listed on the Form 990, 27 (73%) are male while 10 (27%) 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 $1.7 billion, of which $1.4 billion came from ALSAC. Expenses totaled $1.5 billion (including $112 million in depreciation) leaving approximately $200 million put into fund assets (think savings).

Of the $1.5 billion in expenses, $769 million was used to compensate 6,741 employees who received an average compensation of $114,000.  1,810 employees received more than $100,000 in compensation.

The 13 most highly compensated employees were reported to be:

• $2,320,694:  Joseph Taylor, EVP, Scientific Director
• $1,851,107:  James R Downing, President, CEO*
• $1,293,394:  Charles M Roberts, EVP, Director, Cancer Center
• $1,361,911:  Richard C Shadyac, Ex-Officio Director (from ALSAC)
• $1,220,034:  Melissa Hudson, Member
• $1,102,738:  Thomas E Merchant, Chair
• $1,101,321:  Carlos Rodriguez-Galindo, EVP/Chair
• $1,010,702:  Patricia A Keel, SVP, CFO
• $1,082,484:  Ellis Neufeld, EVP, Clinical Director
• $1,043,665:  Andrew Davidoff, Chair
• $  956,627:  Mitchell Weiss, Chair
• $  935,676:  Mary McCarville, Member
• $  576,640:  James I Morgan, EVP, Scientific Director

10 of the 13 (77%) most highly compensated employees are male while 3 (23%) are female.

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

The most highly compensated employee was Joseph Taylor who received $2.3 million in 2023.

The 13 most highly compensated employees received nearly $69 million in compensation from 2017-2023 (note: highly compensated employees in 2017-2o22 but not in 2023 are not listed below):

Joseph Taylor:  Total Compensation 2022-2023:  $3 million

• 2023:  $2,320,694
• 2022:  $  150,612 (Began 4/22)

James Downing:  Total Compensation 2017-2023:  $11 million

• 2023:  $1,851,107
• 2022:  $1,851,807
• 2021:  $1,558,983
• 2020:  $2,324,885
• 2019:  $1,278,550
• 2018:  $1,202,948
• 2017:  $1,087,044

Charles M Roberts:  Total Compensation 2017-2023:  $8 million

• 2023:  $1,293,394
• 2022:  $1,067,173
• 2021:  $1,496,461
• 2020:  $  970,261
• 2019:  $  930,506
• 2018:  $  944,564
• 2017:  $  894,215

Richard Shadyac:  Total Compensation 2017-2023:  $8 million

• 2023:  $1,361,911
• 2022:  $1,091,665
• 2021:  $1,068,828
• 2020:  $1,020,461
• 2019:  $  958,886
• 2018:  $  893,589
• 2017:  $  868,643

Melissa Hudson:  Total Compensation 2023:  $1 million

• 2023:  $1,220,034

Thomas E Merchant:  Total Compensation 2017-2023:  $8 million

• 2023:  $1,102,738
• 2022:  $1,232,030
• 2021:  $1,013,178
• 2020:  $1,014,280
• 2019:  $  953,550
• 2018:  $  889,939
• 2017:  $1,249,628

Ellis Neufeld:  Total Compensation 2018-2023:  $6 milion

• 2023:  $1,082,484
• 2022:  $1,383,314
• 2021:  $1,006,524
• 2020:  $  938,048
• 2019:  $  905,643
• 2018:  $  929,491

Andrew Davidoff  Total Compensation 2018-2023:  $6 million

• 2023;  $1,043,665
• 2022:  $1,123,646
• 2021:  $  992,591
• 2020:  $  927,522
• 2019:  $  894,700
• 2018:  $1,365,679

Carlos Rodriquez-Galindo:  Total Compensation 2017-2023:  $6 million

• 2023;  $1,101,321
• 2022:  $  891,840
• 2021:  $  809,803:
• 2020: $  823,026
• 2019:  $  774,512
• 2018:  $  748,857
• 2017:  $  793,407

Mary McCarville:  Total Compensation 2023:  $1 million

• 2023:  $935,676

Mitchell Weiss:  Total Compensation 2023:  $1 million

• 2023:  $956,627

James I Morgan:  Total Compensation 2017-2023:  $5 million

• 2023:  $574,640
• 2022:  $711,427
• 2021:  $862,285
• 2020:  $653,845
• 2019:  $774,340
• 2018:  $597,847
• 2017:  $643,897

Patricia A Keel:  Total Compensation 2017-2023:  $5 million

• 2023:  $1,060,702
• 2022:  $  832,262
• 2021:  $  852,538
• 2020:  $  702,588
• 2019:  $  680,879
• 2018:  $  718,114
• 2017:  $  629,068

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

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

• $40 million:  Flintco, LLC, of Memphis, TN for construction contractor
• $25 million:  Impact Advisors, of Naperville, TN for consulting services
• $ 6 million:  Dell Marketing, of Atlanta, GA for software support
• $ 4 million:  UT Lebonhauer Pediatric Specialists
• $ 3 million:  Belz Construction Services, of Memphis, TN for construction contracting

To read the IRS Form 990 for St Jude (for the year ending June 30, 2023), click here

To read the IRS Form 990 for ALSAC (for the year ending June 30, 2023), click here.