Will New CEO of Famed Children’s Cancer Nonprofit Get a $1 Million Salary, Too?
William Evans, CEO of St. Jude Children’s Research Hospital, the nation’s best-known pediatric cancer nonprofit has announced his retirement in 2014, after a decade at the helm of the Memphis, Tenn., facility that treats an average 7,800 young patients each year.
There’s no word yet on who will take over from Evans, a pharmacist who’s been with the hospital since 1972, but one thing seems to be clear: St. Jude must like him a lot.
That’s because the CEO salary, which was $477,920 in 2011, almost doubled to an astonishing $904,243 one year later, according to the charity’s most recently filed Form 990, which includes cash bonuses and expense accounts. This increase is a shocking contrast to that of the average nonprofit CEO, who last year received a raise of just 2.5 percent, said Charity Navigator, an organization that “guides intelligent giving” and ranks nonprofits’ financial health, accountability and transparency, and the social value of their outcomes.
Parents of children with cancer like St. Jude. I know I do and our family will be participating in one of their fundraisers next week. I lost my daughter to a childhood cancer and I’m grateful that one major nonprofit has dedicated its mission to developing better treatments for our children.
Among St. Jude’s more laudable coups, the organization has teamed with Washington University School of Medicine in St. Louis in an attempt to identify the genetic changes that trigger the most deadly childhood cancers. In decoding the cancer and normal genomes of 700 young patients, scientists will be able to translate the discoveries into new ways to treat the diseases. This will be a boon for those pediatric patients with cancer survival rates that have stagnated for decades, including some types of brain tumor, bone and soft tissue malignancies.
Charity Navigator lists St. Jude as the nation’s ninth largest charity with total expenses nudging $900 million. The bigger a nonprofit’s budget, the fatter the CEO’s wallet, is the general rule when determining remuneration. But if we compare St. Jude with larger nonprofits, Evans’ compensation looks disproportionately generous.
According to Charity Navigator’s inclusion criteria — an organization must be granted tax-exempt status under section 501(c)(3) — the country’s largest nonprofit is the American Red Cross with total expenses of $3.3 billion, but its CEO commands a relatively modest salary of $591,122. In fact of the 10 supersized nonprofits listed, St. Jude’s CEO has the second highest salary, closely trailing the $905,018 compensation for the CEO of the Dana-Farber Cancer Institute, which has total expenses of $965,097,718.
In fairness to St. Jude, salaries of hospital CEOs are routinely extravagant. Earlier this year, a report by Kaiser Health News and ABC News looked at 30 of the largest public and private nonprofit health systems in the country, and found that the bonuses alone of nine CEOs were in excess of $1 million. In this light, Evans might even look like a bargain.
Charity Navigator disagrees:
“We do not believe that salaries approaching a million dollars or more are needed to attract bright, able and committed candidates to nonprofit leadership. Donors should be skeptical of charities that pay salaries hovering near or above one million dollars.”
Any comment, St. Jude? I’m sure your supporters whose donation dollars fund that salary would welcome an explanation.
This post follows: Would You Support a Children’s Cancer Nonprofit that Pays its CEO Half a Million?
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I agree with Charity Navigator. As a potential donor I’d feel better about a CEO more dedicated to maximizing the success of the non profit than one who ties his/her worth in an exorbitant salary. For me it hinders my zeal to donate to St. Jude.
Amen, Jonnie! No need for my modest contributions when the first Million goes to exec. I applaud St. Jude’s for its work for kids and have made modest contributions for years. No more. Same with the Red Cross and other mega charities which seem to have just lost sight of their real mission. Salvation Army helps a great many genuinely in need, and applies contributions directly to its purposes. Aren’t there some big time retired CEOs out there who would be glad to serve for $200-$3000,000 a year?
I agree that the CEO ‘s salary is extravagant but I sincerely hope that this knowledge doesn’t deter people from donating to the hospital. My son was diagnosed with a brain stem tumor at age 16 and if it hadn’t been for St. Jude hospital I don’t believe that he would’ve survived. He is now 37 years old. They provided schooling after his surgeries (he needed three) and during his radiation treatments. Travel expenses, lodging and food are provided along with medical care and we never received a bill. And we didn’t have insurance for some of the time we were there.
Praise God. The life of your family /friend is far more important than someone salary. They are making a difference daily. No bills as a result.I wouldn’t complain. Thx God for them.
No way, this person is a blood suckers just like any Charity scammers. How can he face the sick kids and take away their supplies to cash in for his outrightly high salary? Only animal can do that. Shame on him! People like him belongs to the bank or government.
Oh my God. Truly a good read. I sometimes give to St. Jude because my brother passed awy from leukemia in the early 70s and a childhood friend was diagnosed with leukemia in the mid 80s and beat the disease and went on to have several beautiful children. So I decided to give to St. Jude although neither my brother nor friend were patients of the hospital. It’s my way of saying thank you to the hospital’s founder Danny Thomas, God, and the most holy Apostle, St. Jude Thaddeus, friend of Jesus for giving Danny Thomas the insight to build the hospital and fulfilling his vow to St. Jude. Now after reading my heart is torn as to whether or not continue giving to this Children’s Cancer Nonprofit with the knowledge that my donation dollars along with countless other donations fund its CEO’s Half of Million dollar salary AND BONUSES!!! What in the name of Christ Almighty; it brings me to tears. I also agree salaries approaching a million dollars or more are NOT needed to attract bright, able, and committed candidates to nonprofit leaderships and too would welcome an explanation. For without one, it too hinders my zeal to donate to St. Jude.
I was disappointed in St Judes after reading about the announcement doubling the CEO’s salary. After practicing for 39 years in a general family practice my gross receipts never approached $1,000,000. I am afraid I have lost my desire to begin supporting this wonderful charity
Yes with this mission. St. Jude’s has been and is the best HOPE children with cancer. Their research has saved thousands of adults as well. St. Jude’s treatments have cured at lot Hoskins disease patients as an example. Also, for the patient does not get a bill for treatment is fantastic not counting the McDonald House that gives the families a place to live. I know some hospital CEO’S that make over a million and they are non-profit. Danny Thomas would agree PERIOD. From Dr. John Gayden retired Ob-Gyn of 40 years in Memphis Tennesseeand
Continuation of Dr. Gayden’s comment which ended to soon. I practiced Ob-Gyn for forty years and I have always been so proud of St.Judes mission and what they have accomplished. Some of the babies I delivered and my group delivered are alive because of this hospital. They need to be competitive in order to recruit the best to run this wonderful gift that has done so much for MEDICINE. It has been very difficult to recruit researchers and physicians because of some problems with crime here. I have lived here since 1968 and really love Memphis but our news stations glorify crime to much. Memphis is a wonderful place to live and practice medicine. Again thank GOD for Danny Thomas.