June 11, 2009
LA Times Questions Executive Compensation at Nonprofit Drug Treatment Center
The Los Angeles Times reports that $45 million-a-year Tarzana Treatment Center is paying its senior executives hundreds of thousands of dollars each. The Center receives 85 percent of its revenues in the form of public funds. Specific 2007 salaries include $428,057 for the Chief Operating Officer, $330,732 for the 32-hour-per-week Chief Executive Officer and $280,422 for the Chief Financial Officer. Deferred compensation for these three executives in 2006 and 2007 totaled an additional $993,821. The CEO also provides legal services to the Center at a cost of $237,956 in 2007, and the CEO and COO along with two board members own properties that the Center leased for $2.27 million in 2007. The Center defends all of these payments, saying they complied with all applicable laws and following conflict of interest procedures. All three executives have been with the Center for decades, with the CEO serving in that role since the mid-1980s.
TrackBack URL for this entry:
Listed below are links to weblogs that reference LA Times Questions Executive Compensation at Nonprofit Drug Treatment Center: