Увольнение executive
Добавлено: 01 окт 2009, 05:34
Sick Kids charity boss gets $2.7M send-off
Golden parachute eased departure of foundation president this year; charity commits `to transparency'
Oct 01, 2009 04:30 AM
Kevin Donovan
Staff Reporter
The SickKids Foundation gave former president Michael O'Mahoney a $2.7 million golden parachute when they showed him the door early this year, documents reveal.
The charismatic O'Mahoney, an American headhunted six years ago to lead the charity, received a payout that included his final salary of $600,000 plus a whopping $2.1 million the charity calls "incentive payments" and money to compensate him for leaving before the end of his contract.
Realizing that this payment – which is unlike any in Canadian charity history – may enrage donors, the charity has set up a special phone line for calls from the public.
"This was one of the most difficult years in the history of SickKids Foundation," board chair Patsy Anderson said Wednesday.
O'Mahoney did not return a call to his new office, a charity fundraising consultancy company on Queen St. E. When O'Mahoney left SickKids, he said he was going to attend divinity school and become a deacon in the Roman Catholic Church.
Late Wednesday, he sent a written statement saying his deal with SickKids Foundation stated "the terms of my severance package be kept confidential." He added, though, that the $2.7 million cited by the charity in its financial statements to regulators "represents a sum far greater than the one I was offered."
SickKids is the fundraising arm of the Hospital for Sick Children. Two years ago the Star reported that SickKids was using aggressive, commission-based fundraisers. The practice is frowned on in the charity world. The Star also reported on high salaries such as O'Mahoney's. At the time, Anderson stood by the president, saying he was a skilled leader who was needed for the job. His salary was $612,000 in 2007. By comparison, the president of World Vision, a charity that not only raises funds but undertakes projects worldwide, was $175,000.
When interviewed, O'Mahoney defended his salary, and when asked if he received any additional incentives based on fundraising or other targets, he said he did not.
According to Anderson Wednesday, O'Mahoney was getting these incentive payments – she wouldn't say how much – and they were building up. She said that's part of the reason for the $2.7 million payout. A big chunk of it is also related to a clause in his contract – approved by the board when it hired him – providing for severance pay. Anderson refused to release this contract.
The hospital, she said, "seeks the best researchers. We seek the best foundation executives." In a statement Wednesday, the board said recent measures it has taken "reflect the Foundation's core values of honesty and integrity."
Hired this summer to replace O'Mahoney is Ted Garrard, formerly vice-president (external) of the University of Western Ontario. Garrard told the Star Wednesday he will be paid $400,000, plus another 25 per cent of his base salary if he meets fundraising and management targets. Garrard is paid a bit less than the president of Sick Kids Hospital; O'Mahoney was paid more.
This new wave of disclosure may be a sign philanthropic groups want to boost donor confidence. SickKids called the Star before it published its financial documents.
"We are very committed to transparency," board chair Anderson said in an interview at the foundation's University Ave. offices.
The SickKids Foundation grew under O'Mahoney, but so did its cost of fundraising. Administration and fundraising now costs 40 cents on the donor dollar, the charity said in the statement. Anderson said they are restructuring to bring those costs down.
She pointed out that fundraising revenue grew significantly under O'Mahoney, more than doubling from the $45 million when he took over in 2003. But in the past year, a challenging economy has seen revenues drop to $88 million.
Proof that the charity can be run more cheaply was evident over the past six months. A board member and Toronto business executive, John Francis, who ran the foundation until a full-time president could be found, did the job for free.
The $2.7 million payout to O'Mahoney was a "negotiated resignation," Anderson said.
As part of what she calls "restructuring costs" they also paid $800,000 to some other senior executives the charity let go.
In his statement, O'Mahoney said he is proud of his achievements, which he said included raising fundraising revenues from $43 million in 2003 to $98 million in 2008.
http://www.thestar.com/news/gta/article/703659
Golden parachute eased departure of foundation president this year; charity commits `to transparency'
Oct 01, 2009 04:30 AM
Kevin Donovan
Staff Reporter
The SickKids Foundation gave former president Michael O'Mahoney a $2.7 million golden parachute when they showed him the door early this year, documents reveal.
The charismatic O'Mahoney, an American headhunted six years ago to lead the charity, received a payout that included his final salary of $600,000 plus a whopping $2.1 million the charity calls "incentive payments" and money to compensate him for leaving before the end of his contract.
Realizing that this payment – which is unlike any in Canadian charity history – may enrage donors, the charity has set up a special phone line for calls from the public.
"This was one of the most difficult years in the history of SickKids Foundation," board chair Patsy Anderson said Wednesday.
O'Mahoney did not return a call to his new office, a charity fundraising consultancy company on Queen St. E. When O'Mahoney left SickKids, he said he was going to attend divinity school and become a deacon in the Roman Catholic Church.
Late Wednesday, he sent a written statement saying his deal with SickKids Foundation stated "the terms of my severance package be kept confidential." He added, though, that the $2.7 million cited by the charity in its financial statements to regulators "represents a sum far greater than the one I was offered."
SickKids is the fundraising arm of the Hospital for Sick Children. Two years ago the Star reported that SickKids was using aggressive, commission-based fundraisers. The practice is frowned on in the charity world. The Star also reported on high salaries such as O'Mahoney's. At the time, Anderson stood by the president, saying he was a skilled leader who was needed for the job. His salary was $612,000 in 2007. By comparison, the president of World Vision, a charity that not only raises funds but undertakes projects worldwide, was $175,000.
When interviewed, O'Mahoney defended his salary, and when asked if he received any additional incentives based on fundraising or other targets, he said he did not.
According to Anderson Wednesday, O'Mahoney was getting these incentive payments – she wouldn't say how much – and they were building up. She said that's part of the reason for the $2.7 million payout. A big chunk of it is also related to a clause in his contract – approved by the board when it hired him – providing for severance pay. Anderson refused to release this contract.
The hospital, she said, "seeks the best researchers. We seek the best foundation executives." In a statement Wednesday, the board said recent measures it has taken "reflect the Foundation's core values of honesty and integrity."
Hired this summer to replace O'Mahoney is Ted Garrard, formerly vice-president (external) of the University of Western Ontario. Garrard told the Star Wednesday he will be paid $400,000, plus another 25 per cent of his base salary if he meets fundraising and management targets. Garrard is paid a bit less than the president of Sick Kids Hospital; O'Mahoney was paid more.
This new wave of disclosure may be a sign philanthropic groups want to boost donor confidence. SickKids called the Star before it published its financial documents.
"We are very committed to transparency," board chair Anderson said in an interview at the foundation's University Ave. offices.
The SickKids Foundation grew under O'Mahoney, but so did its cost of fundraising. Administration and fundraising now costs 40 cents on the donor dollar, the charity said in the statement. Anderson said they are restructuring to bring those costs down.
She pointed out that fundraising revenue grew significantly under O'Mahoney, more than doubling from the $45 million when he took over in 2003. But in the past year, a challenging economy has seen revenues drop to $88 million.
Proof that the charity can be run more cheaply was evident over the past six months. A board member and Toronto business executive, John Francis, who ran the foundation until a full-time president could be found, did the job for free.
The $2.7 million payout to O'Mahoney was a "negotiated resignation," Anderson said.
As part of what she calls "restructuring costs" they also paid $800,000 to some other senior executives the charity let go.
In his statement, O'Mahoney said he is proud of his achievements, which he said included raising fundraising revenues from $43 million in 2003 to $98 million in 2008.
http://www.thestar.com/news/gta/article/703659
