Nonprofit Health Related CEO Compensation
Health Insurance Company CEOs in the U.S. earned tens of millions in 2008, but what about nonprofits? If you guessed that nonprofit CEOs are paid less than their private sector counterparts, you are right. But the numbers are no less shocking to the average American. Below are the highest paid nonprofit workers at the largest nonprofit healthcare organizations, hospitals and medical centers in the U.S, courtesy of the Chronicle of Philanthropy.
Last year, some of the top paid nonprofit workers took pay cuts while others saw increases in compensation. Despite a global recession, many health-related nonprofits reported higher income in 2008, according to the report by The Chronicle of Philanthropy, which surveyed compensation information from the top 400 charities and foundations in the U.S.
According to the Chronicle, it asked each organization to answer a questionnaire and provide its most recent 990 tax form. This year, not every organization provided the information. In fact, most of the top paid executives from 2007 did not provide the information in 2008.
Based on 2007 data, the highest paid nonprofit worker was Herbert Padres, chief office of New York-Presbyterian Hospital. Padres earned $6,170,885 in 2007. That’s $118,671 per week. In some parts of the country, that is enough to purchase a home. Every week. It is certainly enough to purchase one of the finest cars on the market.
As we’ve noted before on this blog:
Under the strictures of 501(c)(3) nonprofits are confined to paying executives “reasonable compensation” and supplying “community benefit.” Unfortunately, neither of these terms are particularly well defined. In [this] study’s executive summary, the IRS puts it so:
“The community benefit standard is the legal standard for determining whether a nonprofit hospital is exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code.”
“Observations. Both the community benefit and reasonable compensation standards have proved difficult for the IRS to administer. Both involve application of imprecise legal standards to complex, varied and evolving fact patterns.”
The varied and evolving fact pattern of nonprofit executive compensation looks something like this:
The nonprofit healthcare CEO with the highest salary in 2008 (given the incomplete response) was James J. Mongan, CEO of Partners HealthCare Systems. Mongan earned $3,376,554 in 2008.
Nonprofit executive compensation, health-related nonprofit:
New York-Presbyterian Hospital Herbert Pardes (CEO): $6,170,885
Memorial Sloan-Kettering Cancer Center Harold Varmus (CEO): $3,677,402
Partners HealthCare System James J. Mongan (CEO): $3,376,554
New York Presbyterian Hospital Steven J. Corwin (COO): $3,127,051
Mount Sinai School of Medicine Samin Sharma (Professor of Medicine and Cardiology): $2,894,580
Note: Aside from James J. Mongan, all numbers are for the 2007. Compensation amounts include deferred compensation and fringe benefits.
See Health Insurance CEO Compensation Here.
Lets see now, this is a Non-Profit insurance? I don’t think we should just take away their pay, we should take away their ability to steal this much money from the unprotected public.
These people are in a class all their own. They are Nobles in a Kingdom created by the pure capitalistic environment they live in. Profits, profits, profits, are the reason we must have a Medicare type health care system. Tommy Douglas used to say, “It’s simple Math”. He started the health care system in Canada. He died in 1986 but he was elected the Greatest Canadian in 2004. Why was he elected the Greatest Canadian? Because he gave Canada their greatest gift. And even though there are some problems lately, because he isn’t here to fix them, they still like it better than profits for insurance CEO s.
Why are these individuals not in the media, CNN, NBC, ABC, etc…? Why are they not brought to the government for interview by our Congress, like professional baseball players, CEOs from the automobile industry, etc…? I have not seen where they have have been doing anything during this reform. Do they have any in-put or do they have special priveledges.
I am not blaming them, but our media and government for not bringing these CEOs to the questioning table. Are they paying for not being questioned and brought to the media?
Shame on whoever is behind this!