While many associate non-profits with altruism and sacrifice, the recent disclosure of executive compensation at some leading charities has stirred up a hornet’s nest of debate.
A review of IRS Form 990 filings has revealed staggering salaries for some top executives, prompting questions about fairness, efficiency, and the true priorities of non-profit organizations.
At the top of the heap stands Craig B. Thompson, M.D., CEO of Memorial Sloan Kettering Cancer Center who took home a cool $8.1 million in 2022.
This translates to roughly a figure more than 108 times the median American household income.
Other high earners include Memorial Sloan Kettering Cancer Center Senior VP/Chief Investment Officer Jason Klein, $6,868,047; National Rifle Association (NRA) Executive Director Chris Cox, $6,183,381; and City of Hope & Affiliates CEO Robert W. Stone, $3,684,871.
Ellen Raney, M.D., an orthopedic surgeon and professor at Shriners Hospitals for Children, earned $3,366,552 in 2022, with $2.6 million of that coming from a retirement plan payment.
Nancy Brown, CEO of the American Heart Association, brought home $3,172,723 in 2022, including over $2 million in bonuses and incentives.
Laurie H. Glimcher, M.D., President and CEO of Dana-Farber Cancer Institute, received $2,802,980 in compensation in 2022.
Jack Mahler, M.D., Chief Investment Officer of the Cystic Fibrosis Foundation, earned $2,248,532 in 2022, with nearly $1.8 million in bonuses and incentives.
Harlan Levine, M.D., President of Health Innovation and Policy at City of Hope & Affiliates, received $2,232,377 in compensation in 2022.
Michael S. Salem, M.D., President and CEO of National Jewish Health, netted $2,020,146 in 2022.
Steven T. Rosen, M.D., Chief Scientific Officer at City of Hope & Affiliates, received $1,955,873 in compensation in 2022.
Myra Biblowit, President and CEO of the Breast Cancer Research Foundation, earned $1,837,111 in 2022.
David Ellison, Chair of Pathology and Director of Neuropathology at St. Jude Children’s Research Hospital, brought home $1,829,593 in 2022, including over $1 million from a deferred compensation plan.
Emily Naus, M.D., a former anesthesiologist at Shriners Hospitals for Children, received $1,547,530 in 2022, with $1 million coming from a retirement plan payment.
These colossal salaries have ignited a fiery discussion. Supporters of high compensation argue that it attracts top talent with proven track records in fundraising, management, and driving impact.
They maintain that a well-compensated leader can leverage their expertise to secure more donations and maximize the positive outcomes of an organization’s work.
However, critics counter that such exorbitant salaries contradict the very ethos of non-profits.
They argue that resources devoted to executive pay could be more effectively channeled towards fulfilling a charity’s mission, directly aiding beneficiaries.
The vast disparity between CEO salaries and the average donor’s contribution also raises concerns about optics and public trust.
The debate extends beyond individual cases, highlighting broader questions about the role of non-profits in society. Should they operate more like businesses, prioritizing efficiency and measurable outcomes? Or should they hold onto their traditional focus on mission-driven action, even if it means operating with leaner budgets and lower executive salaries?
This complex issue is unlikely to be settled anytime soon. However, the rising tide of awareness surrounding non-profit executive compensation is sure to keep the conversation going. As donors, volunteers, and beneficiaries, we all have a stake in ensuring that charities remain true to their core values while striving for maximum impact.
Ultimately, the question remains: are these “charity stars” truly earning their hefty paychecks, or are they simply part of a salary snafu that needs correcting?