Update: BSA Listed in Top Five Highest CEO Salaries Study

Posted on 05 August 2009 by Dan


The Charity Navigator 2009 CEO Compensation Study (pdf) was just released and rates the Chief Scout Executive in the top five highest CEO salaries.

From the Study introduction:

Charity Navigator has completed its fifth annual CEO Compensation Study. This year’s study examined the compensation practices at 5,4481 mid to large sized U.S. based charities that depend on support from the public. Our analysis revealed that the top leaders of these charities earn an average salary
of $158,0752 representing a pay raise of 6.1% over the previous year studied.

According to the report:
The Chief Scout Executive, the CEO of the Boy Scouts of America National Council, receives a salary of $1,577,600. This places the Boy Scouts of America National Council CEO as the highest paid CEO in the Human Services Category. (Charity Navigator lists the BSA in the Human Services Category.)

Five highest CEO Salaries:
University of Delaware – $2,377,100
Salk Institute for Biological Studies – $2,027,891
Rochester Institute of Technology – $1,656,261
Citi Performing Arts Center – $1,644,331
Boy Scouts of America National Council – $1,577,600

Hat Tip: @CrazyinSuburbia

Update:
The BSA has clarified the information contained in the Charity Navigator 2009 CEO Compensation Study. In fact, the salary amount cited included Mr. Williams’ salary, deferred compensation, and retirement benefits. Mr. Williams’ annual salary effective April 1, 2007, would have been $598,300, but he retired on September 1, 2007, therefore he was paid a salary of $404,078.

Complete response:

The Charity Navigator 2009 CEO Compensation Study lists the BSA’s Chief Scout Executive as earning a salary of $1,577,600. This report was based on the BSA’s 2007 Form 990 and discusses the compensation from the retirement year of the BSA’s past Chief Scout Executive, Roy Williams, who had 35 years of service with the organization. While the report labels his earnings as “salary,” in actuality, the number cited represents Mr. Williams’ salary, deferred compensation, and retirement benefits. Mr. Williams’ annual salary effective April 1, 2007, would have been $598,300, but he retired on September 1, 2007, therefore he was paid a salary of $404,078. His annual salary would have been in line with other organizations of similar size and scope as the BSA.

Further, this report can be misleading because deferred compensation is not paid every year, but is accumulated over a number of years. In this case, deferred compensation was paid out the year of Mr. Williams’ retirement. Components of his compensation included in this report include:

· Salary of $404,078 (Mr. Williams’ annual salary effective April 1, 2007, would have been $598,300, but he retired on September 1, 2007, therefore he was paid a salary of $404,078.)

· Accumulated (over three years’) value of deferred compensation – 457 (f) of $912,479

· Retirement payments of $131,493 received after retirement (Sept 1, 2007)

· Various retirement gifts and recognitions which total $71,452

· Unused vacation valued at $11,746

· Expenses of $46,352 paid by Mr. Williams are listed on the form which includes: compensation value of personal automobile, cell phone, additional life insurance premiums, and tax preparation services on which taxes were paid by the employee.

In the introduction, the Charity Navigator study appropriately states: “These are running multi-million dollar operations that endeavor to change the world. Leading one of these charities requires an individual that possesses an understanding of the issues that are unique to the charity’s mission as well as business and management expertise similar to that required of for-profit CEOs. Attaching and retaining that type of talent requires a certain level of compensation.” The BSA is one of the largest youth-serving organizations in America. The position of Chief Scout Executive for the BSA includes providing leadership for more than 300 local Boy Scout councils who serve more than 4 million youth members and participants, and 1.2 million adult volunteers. In addition, the Chief Scout Executive manages approximately $183 million in totalrevenue and provides leadership to nearly 7,000 employees in all 50 states and in three international BSA offices.

Further, the study recommends that interested parties should find out if their favorite charity has a compensation committee. The BSA’s management compensation is authorized by the Executive Board, an all-volunteer group. Detailed study and analysis is assigned by the Executive Board to its Management Compensation Review Committee, comprising the volunteer president, executive vice president, and treasurer. The Management Compensation Review Committee engages third-party executive compensation specialists to make recommendations regarding competitive compensation arrangements for like services in other organizations.

The mission of the BSA is to prepare young people to make ethical and moral choices over their lifetimes by instilling in them the values of the Scout Oath and Law. In order to achieve this mission, the BSA and its volunteer leadership believes it must provide competitive compensation in order to continue recruiting and retaining the high-caliber individuals needed to support BSA programs. In all it does, the BSA works to accomplish its mission while practicing good stewardship of benefactors’ and volunteers’ gifts of time and money.

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29 Comments For This Post

  1. Joe Says:

    That is a lot of popcorn…

  2. karen Says:

    Add my son made $100 a week at Denver’s scou camp

  3. John KKD9563 Says:

    When I joined the Scouting Profession in 1971, I made $8,000,00. Guess I should have stuck around.

  4. Tom Says:

    Ya…do you think there is room for butter with that popcorn…?

  5. Doc Marshall Says:

    No wonder the poor DE’s are always being pressed to bring in more funds. Sorry, folks, there’s no way that I can see him being worth anywhere near that much. It’s about time to bring BSA back down to earth!

  6. David Copeland Says:

    It seems like there have been a lot of positive changes for Scouting in the last couple of years at the national level but I don’t think we are type of organization that can justify that kind of pay.

  7. Mitchel G Says:

    I think that is absolutely insane. I have Scouts who can’t afford $40 Scout pants and yet we can afford to pay our CEO that much? Where does Thrift come into this equation?

  8. Dan Says:

    In all fairness to the National folks, I checked the data Charity Navigator had on file. Their salary information is from 2007 when Roy Williams was Chief Scout Executive.

    GuideStar has the 2007 990 on file. Looking at the 990, Mr. Robert Mazzuca made the following in 2007:

    Compensation – 377,617
    Deferred Compensation – 322,237
    Expense Account – 22,810

    Remember Mr. Mazzuca took over as Chief Scout Executive September 2007, but was an Assistant prior. For comparison, Mr. Wayne Brock one of the listed Assistants made 323,010 in 2007.

    Looking at this, it is possible Mr. Mazzuca’s compensation is in fact lower than Mr. Williams’ 2007 compensation. We really won’t know until we see the 2008 990.

  9. David H Says:

    As much as I love the scouting program, I cannot support this kind of salary for the CEO. Most of us volunteers make between 30,000 and 50,000 annually and have to ‘volunteer’ one hour a week :) to help with our scouts. We have to fork over money for clothing and supplies that if purchased from the scout store are at inflated prices. We have to sell popcorn to help support the program. We have DE’s that are underpaid and over worked. We have summer camps that need to have work done to them in a desperate way, yet we are going to pay our CEO 1.5 Million. We could cut his pay by 1 million and use those funds for other things and he would still be getting paid good money. I just don’t agree with this at all.

  10. Joe T Says:

    Fairness, is an interesting thing. It is seen through the eyes of the viewer. Mr. Mazzuca I beleieve has worked for this National Corporation for 35-40 years. Moving up the ranks from DE to Scout exec., to whatever at Region to National. When he started he probably only made $8,00-10,000. Scouts is an old school business. I mean it’s a job that if you can survive and go up is the only job you’ll need. Imagine your parents or grandparents working and retiring from companies like the railroads, construction, car manufacturers, etc… they lived and died for the one company.

    So, is it right that Mr. Mazzuca is paid 1.5 million…. Who can be the judge. I make 30-50K a year, my father was like Mr. Mazzuca. worked through the ranks of a internation construction company, he made money that I could not phatom. His daily take home would eclipsed my current monthly income. I believe I can see both sides of the fence better than most. What do you think?

  11. CivilityRules Says:

    A further look into the compensation noted on the Charity Navigator actual site includes the retirement plan…hardly just salary. I would hope an employee after 39+ years of service has accumulated some retirement. In summary, Scouting News reporting is misleading and unScoutlike. We deserve better.

  12. Dan Says:

    @CivilityRules – I am not sure where you saw that the amount cited included retirement. While the study does mention compensation throughout the document, it clearly states the salary was $1,577,600.

    Looking at the information included in the 2007 Form 990, which is the form used by Charity Navigator, Mr. Williams had $1,531,248 in compensation, $2,396,513 in contributions to employee benefit plans and deferred compensation plans, and $46,352 in expense account and other allowances.

    The figure cited in the report and mentioned in the Scouting News Post is $1,577,600 which is the compensation plus expense account and other allowances, it does not included the $2.3 million in deferred compensation plans.

    The Charity Navigator site even includes their definition of “Compensation” – Using information reported on an organization’s most recent Form 990, we include as compensation an individual’s salary, cash bonuses, and expense accounts and other allowances. We do not include contributions to benefit plans or compensation deferred to a future date.

    My intent is not to be “misleading” or “unScoutlike”. While I do feel there is some confusion about the study being released in 2009 based off of 2007 data, this appears to be normal protocol for Charity Navigator as the 2008 & 2009 IRS data is not yet available.

  13. Dan Says:

    @JoeT – You are correct fairness is subjective. It is my personal opinion that the CSE salary is too high. I tried to keep this removed from the original post, however let it slip into my clarification comments.

    If Mr. Mazzuca has a salary inline with the 1.5 million that Mr. Williams made in 2007 I would have difficulty in justifying the high amount even understanding he has been with the program since 1971. Personally I could see a mid six figure salary but anything higher seems excessive, to me.

    More power to him for commanding a high salary, however when the organization demands donations and support from others it is, in my mind, questionable.

  14. Dan Says:

    I stand to be corrected. Despite what Charity Navigator said, and what the Form 990 suggested, Mr. Williams’s cited salary actually included: salary, deferred compensation, and retirement benefits.

    Please see the update to the post for the response from National.

  15. Bob M. Says:

    If you stick around long enough to make CSE, more power to you. I worked 3 years as a DE, before I answered my church’s call to the ministry. A ‘light’ week for me, was a 75 hour work week. During fall recruitment and spring FOS, 90+ hour weeks were typical (for 3-4 month stretches).

    It is NOT a profession to get “rich” in, and for YEARS, you will toil at the 75-90 hour week positions of DE, SDE, DiD, & FD, overseeing not only your District(s), but also have OA Lodge, Cub & Boy Scout Camp duties, District & Council fundraising activities (dinners, charity shoots, golf tournaments, popcorn sales, etc.), and OTHER council responsibilities to attend to as well. No MATTER your job at a local council, you will ALWAYS have Council responsibilities to attend to – even in districts OTHER than the one you’re serving!

    Yeah, there are crummy ‘perfeshunal’ Scouters out there – same as there are crummy doctors, lawyers, plumbers, cops, politicians, and carpenters. Most of them though, are dedicated to the Scouting program, and are still underappreciated, as they work in relative obscurity (yes – for a paycheck. Anyone else willing to “volunteer” 75-90+ hours a week for Scouting? EVERY week?), so that our sons can ENJOY Cub Day Camp, and not HAVE to wonder about things like, where do the beads come from? Where did my tee shirt come from? How did the patch get here? Who paid for the BB’s and archery targets, and so MUCH more. Yes, volunteers STAFF events, but if you realized just HOW MUCH Scouting EVEN at your District level “happens” due to the efforts of your Professional Scouter(s), you’d be HARD-PRESSED to provide the SAME, with ALL volunteers, and COMPLETELY out-of-pocket…

  16. Dan R. Says:

    I like how everyone here presumes that the CSE is the highest paid employee in the BSA. Well you’re wrong! There are some councils that pay their scout executives more than the CSE. These individuals would be taking a real pay cut if they accepted the CSE position.

  17. ceo pay scale Says:

    According to me CEO pays are not determined by performance alone, unless the performance is absolutely worthless. It seems a CEO is paid just for staying around with the company. The CEO pay should be based more on EPS, market-share and ROIC which these chiefs have considerable influence on. For more details on CEo pay scale refer http://www.prime-targeting.com/know-more-about-ceo-pay-scale/

  18. Michael Says:

    Sorry guys. Most of you are way off base here. I too am an unpaid volunteer Scouter but the fact is that running an organization the size and complexity of the BSA, with all that is involved, involves a level of expertise that most of you could even begin to grasp or truly understand. If you could, you’d be making mid to upper six figure incomes yourself. The truth is that in order to attract and retain the caliber of individual required to effectively run such a huge organization, you have to pay that kind of salary. It is a fact of business that you simply cannot escape. Pay less and you’ll get a poorly run organization. I wish it were not so but it is the way things are when you get to that level of operational skill.

  19. Michael Says:

    SEE WHAT I MEAN!!! I CAN’T EVEN GET THE LETTER RIGHT!!!! NOW YOU KNOW WHY I WORK FOR FREE!!!! Sorry guys. Most of you are way off base here. I too am an unpaid volunteer Scouter but the fact is that running an organization the size and complexity of the BSA, with all that is involved, involves a level of expertise that most of you COULDN’T even begin to grasp or truly understand. If you could, you’d be making mid to upper six figure incomes yourself. The truth is that in order to attract and retain the caliber of individual required to effectively run such a huge organization, you have to pay that kind of salary. It is a fact of business that you simply cannot escape. Pay less and you’ll get a poorly run organization. I wish it were not so but it is the way things are when you get to that level of operational skill.

  20. Eric Says:

    It is a shame you did not compare national non-profit salaries. You will find the salaries comparable to other national non-profits of simular size.

    You pay for what you get! Do you want quality people for a great organzation?

  21. Dan Says:

    @Eric – Remember this was a study released by Charity Navigator. They compared “5,4481 mid to large sized U.S. based charities that depend on support from the public.”

  22. Leader1 Says:

    come on though..a MILLION dollar salary for a scout Executive? He has a full staff of very competent people to help. Remember, the President of the US only makes 400K and he runs a whole country.
    National Executive pay should be reasonable.

  23. Ol' Scout Says:

    Our camp is scrimping money for a water system and our cabins are 50 yr old plywood shacks that are moldewy and moldy, all of our canoes leak like a seive, and we rebuild the same old structures every winter because the snow and wind collapsed them but they can’t be replaced because there is no money. Now we know why! What ever happened to scouting being about the boys?

  24. Ralph De Falco Says:

    Come on, let’s be realistic! Where I come from pay is based on results. The buck stops at the top. About 1970 Scouting membership peaked and since then it has gone downhill to the point of having about 50% less members, while the boy population has gone up. Since 1970 National and Local Councils have lost the art of recruiting new Scouts. They have a great product but the professional scouters don’t know how to sell it. For this they should be fired, not paid a high salary.
    From a Very Old Volunteer

  25. Scoutmaster Says:

    There is something wrong when a non-profit organization pays their executive that much and refuse to send the needy scouts to camp. I’ve had to pay out of my own pocket and ask our sponsor for financial help because the local council is asking the parents pay half the fee for camperships, which $105 for a family on food stamps is like asking $1000 for the middle-class family. Geez, how can the BSA say they are non-profit when they pay the CEO that much? Baden-Powell had it correct to say “Don’t let it become a salaried organization: keep it a voluntary movement of patriotic service.”

  26. Di Says:

    I make just above the amount to get any government aide by $1.50. I work in Scouts, giving my time because I don’t have the money. I spend about 20+ hrs a week working with a Cub and a Troop unit. Then I am told a sob story that I need to dig into my empty pocket and fork over money for FOS. My boys wear uniforms from the thrift store. I know it takes a lot of smarts to run a big organization like BSA but please, give back to the boys and hire the staff that is needed to run districts. I have seen DEs come and go. They leave because the hrs are long and the pay is short. The National Council needs to get in touch with the real world. So question is, who reads these replies? Does any one on the National level? Are we just typing here to vent for others to read?

  27. Dan Says:

    @Di – Scouting News is an independent publication and is not affilated with the Boy Scouts of America, Girl Scouts of the USA, or World Organization of the Scout Movement. It should not be used to communicate with any national level BSA employees. Comments areenabled to allow readers to comment on the stories posted.

  28. wes Says:

    Many have said that they want the best to run the program. Well who really runs it? I say it is the Scout Masters. They are the ones in the ditches and teaching these young men the skills, not the ceo. I am an Eagle Scout and am ashamed at the direction scouting has gone. I always thought that the scouting program was all volanteer. Boy was I ever wrong. I too have been a Scout Master and I did not see or experience any of this great wisdom from the ceo or any of the paid professional scouters. I took my boys out camping, I taught them skills I helped them through different struggles without pay. Where was the professional Scouters? I didn’t see them except when it came time to get money FOS. Once again, I had to collect the money. I did this because I cared about the boys. I don’t mind professional Scouters making a fair living, but shouldn’t they be doing this because they care about the boys?

  29. DE Says:

    Hey folks, I am a DE and let me tell you something. Do you really think we enjoy asking you for money during FOS?! It is a pride swallowing daily event for 6 months or until we make our goal. But we love scouting and the program that it provides to the boys so much that we do it. Yes we would rather be at home with our families on the weekends that we are camping or at Scout meetings 4 nights a week. We have kids too! And before you go bashing how much the chief Scout Executive gets paid…look and see how much your council pays into the National Office. You will find that the National office gets 1% of your council’s operating budget (-the camp operating budget) plus all registration fees. So if you are upset that all your DE’s do is ask for money then maybe one year try and help them and see how much better your DE can serve you if you the parent/volunteer get out there and help him raise money! Imagine what he could do for you if he only had to raise money for 1 or 2 months out of the year. But remember this is our job and like all of us out there that have jobs we sometimes have to do things that we are required to do whether we like it or not.

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ScoutingNews is an independent publication and is not affilated with the Boy Scouts of America, Girl Scouts of the USA, or World Organization of the Scout Movement.