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
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.
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.