Philadelphians Dare to Question WHYY Executive Salaries

Staff, a newspaper columnist, and a local magazine take on the CEO of the local public broadcasting outlet for excessive compensation and poor performance. 

Back in August, we talked about the quarter-million-dollar salary of Matt A. Peskin, head of the organization that sponsors National Night Out, and his defiant stance against people (including Sen. Arlen Specter) who questioned it.    Philadelphia Inquirer columnist Karen Heller used the story to launch an attack on another well compensated CEO, William Marrazzo of the public broadcasting outlet WHYY (EIN 23-1438083 Form 990). 

For several years, Mr. Marrazzo has topped the salary list of public broadcasting CEOs, with direct compensation of $420,786 and contributions to benefit plans of $211,117, which includes a nonrecurring payment of $154,867 for retroactive tax liability on pension benefits. 

The column by Mr. Heller was followed by a letter from anonymous staff members, published on the Philadephia Citipaper blog, with complaints about Mr. Marrazzo's pay and the lack of local programming at the station (among other things).  The Citipaper provides some helpful context by referring back to a labor dispute at the station last year that also put the CEO's pay in the spotlight. 

The Philadelphia Magazine (reporter Steve Volk) then covered the story, with more details on how Mr. Marrazzo reached the top position at the station without having prior experience in broadcasting.  This reported even was granted an interview with Mr. Marrazzo that was marred by some heavy handed attempts to intimidate the reporter:

My own experience with 'HYY was often troubling. Along the way, the company's publicity flacks called my editor to talk when they didn't like the questions I was asking; the director of marketing creepily recited for me a long list of all the people she knew I had called; and two 'HYY publicists took notes during the majority of my interviews with 'HYY staff, a policy even extended to [radio call-in host Marty] Moss-Coane, a woman who is otherwise trusted to sit in front of an open microphone for two hours a day. I was also informed in an e-mail that WHYY could potentially find, fire and even prosecute the person responsible for faxing me a not-so-sensitive financial document - a budget sheet, essentially - that didn't even warrant inclusion in this story.

The Form 990 for WHYY confirms that Mr. Marrazzo's pay package is more than double that of other staff, including COO Bruce Flamm ($187,306/$18,408) and on-air personality Terry Gross, listed in schedule A as an executive producer ($180,907/$16,942). 

But even more disturbing to me is the absence of any financial officer in the compensation rolls. It appears that WHYY paid a company called Your Part Time Controller $83,453 in 2006 to keep the books.  This might be an appropriate approach for a smaller scale operation, but not for a $30 million a year operation with 190 employees. 

Then on the board, we see that the board secretary is M. Walter D'Alessio, the real estate developer who was formerly the chair of the Independence Seaport Museum, another charity with an out-of-control executive director (who pleaded guilty of defrauding the museum of  $1.5 million).  We have already questioned the ability of Mr. D'Alessio to provide oversight for charity organizations.

Public broadcasting provides the perfect counter for the absurd claim that executive salaries at charities need to be based on the standards of the private sector, when nationally known on-air talent in public broadcasting (like Terry Gross) earn in the low six figures.  These high CEO pay packages are a measure of the inability of in-bred charity boards to implement reasonable and sane standards of compensation (the kind that human resources departments routinely establish) and to engage in competent salary negotiations. 

And it is good to see that some in the local press (at least) are now willing to take on the issue of CEO compensation in nonprofit organizations.

Comments

[Dale]

I wouldn't have a problem with his salary if there was a lot better programming from WHYY, but that just hasn't been the case. He's raising lots of funds, not sure where they're going. I'm thinking about giving to the smaller public tv stations, especially NJN and WYBE/Mind TV, who air more local content and clearly benefit from increased revenue.

[drklassen]

The ought to be a law that no executive can be given a total compensation greater than 100 times that of their lowest paid employee (including subcontractors---so you gotta count the cleaning staff).

WHYY's CEO takes the coward's way out when asked about his compensation by saying the board created and offered it to him. I'd really like to hear if he believes his work is truly worth 500 of his employees.

[underalms]

Why 100 times? I'm more inclined to say that no one should make more than 50% more than the people who report to them.

[New Balance Shoes]

As a global leader of the movement, brand new balance to high moral standard, the company 100% customer satisfaction, team cooperation spirit, the company in technology, product appearance and comfort material progress and innovation for each exercise can exert their maximum potential, enjoy comfortable life of balance and unremitting efforts.

[New Balance 574]

Nice Info . Do you mind if I talk about this post in my blog. You and your blog will surely get the credit

[Ethel Robin]

I got this shocking information quite by accident. Right now there is fund raising going on which is begging for donations to keep programs on the TV, days of constant nagging,which is really undignified and annoying, and what is it for? It seems it is done so the exhorbitant salaries of the executives can be continued. I contributed for many years but had no idea where the money went.

[ugg outlet]

A good name is easier lost than won.

[cheap jordan shoes]

Pass through here found that you are so rich and colorful. Thank you

[Air Jordans]

yes you are right!

[resume writing service]

Ethel, that's a very serious problem with many donations: you rarely get the info where exactly your contribution goes

[Seteadvenny]

Great blog, amazing tip. Certainly you check here again and tell about it to friends Thank you! “You can do anything, but not everything.” - David Allen

[Cheap oem software]

Great blog, interesting article. Sure you check here again and write about it to friends Thanks! “If you want to make peace, you don’t talk to your friends. You talk to your enemies.” - Moshe Dayan

[master cleanse]

Very Good! These are wonderful! Thank you for sharing!

[air jordans]

Tierney says that larger scale organizations would have access to other resources, which I suspect means that they pay for consulting services from Bain at the going rate. Bridgespan's Form 990 reports that the company operates with consultants borrowed from Bain & Company, which continues to pay their salaries while on loan.

[cheap jersey]

information in this sector to read the reports, not just the news.

[Sac Longchamp]

Hey, probably I am being a little bit off topic here, however I had been reading your website and it appears outstanding!. I’m creating a site and attempting to make it interesting, however every single time I touch it I wreck something up. Did you build and style the website by yourself? Can a person with very little experience do it, as well as add frequent updates without messing it up? well, great information on here, extremely helpful.

[cheap Monster Energy Hats]

Many thanks for the article. I will have a link back to this information from our fresh blog.
http://www.cheaphatcaps.com
http://www.cheaphatcaps.com
http://www.cheaphatcaps.com

[Cheap Nike Shox]

The paramount duty of Congress is to stop deficiencies by the restoration of that protective legislation which has always been the firmst prop of the Treasury. (William Mckinley, American president)

[Generic Cialis]

Szia, nagyon szép munkát végzett, sok embert keres a most fognak talál elegendő forrás az Ön tippeket, még várjuk a további tippeket, hogy

[Official Steelers Jersey]

The paramount duty of Congress is to stop deficiencies by the restoration of that protective legislation which has always been the firmst prop of the Treasury.

[air max shoes]

Szia, nagyon szép munkát végzett, sok embert keres a most fognak talál elegendő forrás az Ön tippeket, még várjuk a további tippeket, hogy

[ドボネックス]

Lavoro veramente bello, ci sono molte persone alla ricerca di che ora troveranno fonti abbastanza da vostre punte.

[バーバリーマフラー]

複数の政府関係者が明らかにした。外交安全保障政策で助言を得るためとしているが、政府の役職に野党関係者を起用するのは極めて異例だ。国会対策で焦点となる公明党との関係強化を模索する狙いもあるようだが、民主、公明両党間の正式ルートで協議した痕跡はあまり見えず、“民公”接近につながるかどうかは微妙だ。
関係者によると、高野氏の起用は、藤村官房長官が高野氏に「外交機能を強化したい」と打診した。政府高官は３日、「外交関係のアドバイザーだ。国連平和維持活動（ＰＫＯ）の問題も含め、広く意見をうかがう」と説明した。ただ、政府内にも「公明党とのパイプ強化を狙ったものだろう」との見方が強い。

[Calvin Johnson Jersey Authentic]

field position, red zone offense and defense, penalties, third-down offense and defense and turnover differential, and spits out those performances in an easy-to-understand number These two moribund clubs played through a fairly pedestrian first half and came out tied at three points each, courtesy of a couple of field goals Just kind ofmissed the ship

[Outlets Belstaff]

I follow you VIA GFC and I love your blog!