Georgia college president paid $9.6 million and gets a free house

Among all the nonprofit colleges in the U.S. – think Emory, Duke, Harvard and many more, including leading research universities – which would you think has paid its president the most?

It’s one in Georgia. But not who you might think.

According to the Wall Street Journal, the latest available data shows that it’s Savannah College of Art and Design, where compensation for President Paula Wallace was $9.6 million in 2014. Much of that money was deferred compensation from a retirement agreement.

Wallace, a former Atlanta teacher, is co-founder of the college, which opened in 1979 and had about 12,000 students in 2014.

In comparison, that same year the president of Emory University, which has some 15,000 students, was paid about $1.2 million, IRS records show. So was the president of Duke, which also has around 15,000 students. Harvard, with around 22,000 students, lagged, paying its president about $900,000.

SCAD’s tax form also shows that it provided Wallace and trustees travel on the corporate aircraft, as well as travel at times for their companions and family members.  Wallace is also provided with a residence and with a housing allowance “in connection with her personal residence in the Atlanta area.”

Executive pay at nonprofits of all types has drawn scrutiny in Congress in the past. IRS enforces a law that strictly forbids a tax-exemption organization from receiving unreasonable benefits from the nonprofit, such as excessive compensation. Organizations are to pay executives “fair and reasonable” compensation, though there is not a universal standard defining that.

SCAD’s tax filing said that Wallace’s base pay and bonuses are determined by the board in conjunction with an independent compensation consulting firm. “The institution complies with the procedures and standards set forth in the IRS regulations to receive the ‘rebuttable presumption of reasonableness’ with respect to the total compensation paid to the president,” the tax form states. It goes on to explain that part of Wallace’s pay that year was boosted by a lump sum of deferred compensation.

The tax form also shows that three of Wallace’s family members received wages and benefits from the college, as did family members of a former officer and some key employees. The highest amount was $557,533, paid to Wallace’s husband.

 

 

 

 

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4 comments
Queen of Ctown
Queen of Ctown

I've been calling it S.C.A.M. for years and a lot of people who have worked and attended there do too.   Not really any different than the for profit "colleges": take that student loan and grant money and to heck with the students. 

FreePolazzo
FreePolazzo

It is unfair to compare an annual salary to another’s total from “deferred compensation”.It would help to know what Emory pays their president in “total retirement” benefits.

Also, one of “presidents”  started  the college as a business that is very successful and the other is an employee of a well-established institution.

Our culture reward entrepreneurs  much more that those who take the proven path.  That’s because the risk of failure is so high for startups.

I appreciate that it looks like a lot of money, but that is a different issue.   Perhaps the high wages paid to college presidents is another issue, but that would mean comparing similar types of colleges (Private with Private; State with State, Religious with Religious) and take a bit of research.  I know from those who have worked or even been offered to work at Harvard, that they pay much less than other “prestigious” schools as they offer status of being a “Harvard Professor” and the supply of people who want to work there is very high as opposed to the Emory University, which is a very good school, but not in the “class” of a Harvard (in the minds of those looking for work in the college teaching field,)

Look forward to that article.  

-- Free


SSINative
SSINative

@FreePolazzo "Entrepreneurs" - you got that right!  Only thing is, the IRS status does not jive with the reality, and the City of Savannah has been denied millions in property tax revenue over the past three decades for the vast real estate holdings this entrepreneurial family has amassed under the guise of non-profit university.


TD Man
TD Man

Somewhat  agree.....but....but you conveniently overlooked the non profit part. That was the gist of the article