This week, the Dallas Business Journal (September 16-22, 2011) posted a list of the top 25 executive salaries in non-profit businesses in North Texas. The numbers are shocking!
The figures on total compensation come from the most recent fiscal year reported, and they include salary, bonus, benefits, and the ambiguous “other.” Of the top 25, there are thirteen health care organizations, primarily the hospitals and facility networks that fall under the auspices of non-profit status.
The top compensation package belongs to the CEO of Texas Health Resources, a large and growing network of medical facilities, currently owning 24 hospitals in the area. The compensation for the CEO with Texas Health Resources is reported to be $5,716,724, which includes a salary alone of over $5 million, and over one-half million in the category of “other.”
The total revenue for THR in the same time period was $334,944,000. In other words the CEO’s compensation equals about 1.7% of the organization’s total revenue. If you went to a THR hospital last year, and you and your insurance company were billed $10,000 for a short stay, Mr. CEO himself was paid $170 of it. This is a new definition of “obscene.” It also represents one decent paying 8-hour day of wages ($21.25/hr). And, this is just one example of one short-stay billing for one patient.
Texas Health Resources can also tout, if they want to show off their numbers, having positions five and fourteen on the DBJ top 25 list. Together, just among the top 25 executive salaries, THR paid out in total compensation of almost $7.5 million. This is roughly equivalent to the salaries of 43 U.S. Senators or 300 regular jobs at $25,000 annual salary. Swallow hard, and look at this next example!
Baylor Health Care System is one of the area’s most highly regarded medical operations. It is heard often, “If you ever get really sick, go to Baylor.” The DBJ top 25 list includes six executives within the Baylor system. The total compensation of these six executives is reportedly $4.85 million, roughly equivalent to the salaries of 28 more U.S. Senators.
Article comments
1 - jamminsue
Well said
2 - Glenn Contrarian
The compensation they get is a lot higher now, but I first figured out what a scam that non-profit agencies were back in the early nineties, when Elizabeth Dole began drawing a 100K salary for heading up the Red Cross. That's not a hit on the GOP or the Doles (whom I still like).
In all honesty, I think that non-profits are a better business strategy anyway - fewer if any taxes, those working for it still draw a decent salary, and all profits beyond operating the charity itself are used to help the business grow.