From: MPetrelis@aol.com
Date: Thu, 19 Feb 1998 14:27:25 EST
Subject: NAPWA bd. member Pat Christen gets salary increase?

[dear friends,
the following story is about a possible salary increase for the head of the
s.f.a.f.  it must be pointed out that this person also sits on the board of
directors of n.a.p.w.a., the national association of pwa's.  will n.a.p.w.a.
ever insist that its board members, who also run aids agencies, keep their
greediness in check?--mp]

Internal documents leaked
SFAF board passes notes on executive salaries

by Cynthia Laird, 
Bay Area Reporter, February 19, 1998

	A corporate headhunter's confidential memo for at least three San Francisco
AIDS Foundation (SFAF) board members, presumably those on the executive
committee that evaluates SFAF Executive Director Pat Christen's performance
each year, shows compensation for top administrators at nonprofits is on the
rise; the document also points to a new trend where executive directors
receive a one-time bonus, much like their counterparts in the for-profit
sector.
	The controversial AIDS activist group ACT UP/San Francisco has come into
possession of the document, and fears it will be used - or may have already
been used - to sanction a raise for the SFAF executive director. According to
federal tax returns, Christen's salary was $148,794 for the fiscal year that
ended June 30, 1996, making her among the highest paid of any Bay Area AIDS
service organization (ASO) executive, if not the highest.

Current salary 'not available'
	The January 9 memo, written by Korn/Ferry International employment counselor
Eunice J. Azzani, called attention to many organizations "opting to give
bonuses rather than significant pay increases." Agencies with budgets greater
than $15 million typically saw executive director compensation ranging from
$150,000 to $250,000 annually; organizations whose budgets were under $15
million generally paid their directors anywhere from $75,000 to $150,000.
According to SFAF Communications Director Derek Gordon, the agency's annual
budget is now approximately $18 million, up from $16.2 million in 1995-96.
	The memo placed the median salary of nonprofit executives nationwide at
$193,206, and stated the median rise in compensation was 5 percent. "Bonus pay
is increasing for top executives," it said.
	Azzani sent the information to SFAF board member Kathleen J. Burke, vice
chairman of corporate human resources for Bank of America. Burke forwarded the
materials to SFAF board member Lonnie Payne and Board President Paul Wisotzky
on January 14, with a cover letter stating "I haven't yet analyzed the
information myself, but I'd like to discuss it with you before the committee
gets together on January 22."
	The SFAF board held its annual retreat the weekend of January 23-25. Although
it is not known if directors evaluated Christen at that time, they are
believed to have discussed the issue. Wisotzky said in a 1997 interview that
in prior years Christen's salary was reviewed in January.
	Gordon refused to reveal how much the executive director currently earns.
"Her current salary is not available," he told the B.A.R. "As you know, the
SFAF reports information through [annual federal Internal Revenue Service
Form] 990s. We've been consistent in that."
	The next 990 will probably be released this May and will already be out of
date, covering only the fiscal year from July 1, 1996 to June 30, 1997. 

'Zero tolerance for bullshit'
	Azzani has connections to the SFAF; from 1990 to 1995 she served on its board
of directors and is credited with bringing Christen on board as SFAF's
executive director in 1989. Last April, when Continuum HIV Day Services
Executive Director William Glenn presented Azzani with the James R. Harrison
Award at the foundation's 10th annual Leadership Dinner, he praised her "zero
tolerance for bullshit."
	In an interview last Friday, February 13 with the Bay Area Reporter, Azzani
was candid - often blunt - as she answered questions about the memo and talked
about some of the issues around the SFAF. She was critical of the B.A.R. and
staunchly defended Christen's salary and job performance. At one point Azzani
lashed out, accusing the paper of contributing to divisiveness in the
community at a time when "we should all be" focused on fighting the epidemic.
	Azzani defended her use of data from the corporate world, and said she firmly
believes nonprofits are businesses. "When you look at the talent, you need to
understand that nonprofits have a significant role and just because it's a
nonprofit doesn't mean it shouldn't have [excellent leadership].
	"My premise is I look at companies, nonprofits, the number of employees, and
sizes of budgets," continued Azzani. "It's not just the AIDS service world,
the market [used] is from for-profits, nonprofits, and healthcare."
Determining compensation for executive directors also involves placing a value
on a person's contribution. Given the salary, it's clear the SFAF board has
determined a high value for Christen, despite the recent criticism. "Why
shouldn't people in nonprofits make more money? Take education for example. If
we'd invested in teachers, maybe [education] would be better," said Azzani.
	She said many boards offer both a salary increase and a bonus as incentives,
but did not say if that is the route SFAF's directors have gone regarding
Christen's compensation. The main reason for giving a bonus is that it serves
as an incentive. "I personally think incentives are good, and it depends on
what they [executive directors] are asked to do. It [the bonus] is becoming
more and more common," Azzani said. A September 1997 Chronicle of Philanthropy
article that Burke sent to Payne and Wisotzky stated bonuses are a one-time
expense, so they don't permanently affect an agency's budget, which is one
reason they are attractive to organizations.
	Azzani defended her memo's claim that "some organizations are working to
achieve pay equity for women as they still earn significantly less than male
counterparts," in light of Christen's salary, which is higher than that earned
by male directors of Bay Area ASOs and other larger ASOs in New York and
Washington DC. 
	"Do I want to make less than my male counterparts? No," Azzani said. "It's
becoming more and more what's happening with nonprofits and for-profits.
There's nothing wrong with calling it [nonprofit] a business. They need to be
well run."

Litter bugged
	Azzani and Wisotzky were both surprised that the memo, along with
accompanying data and the Chronicle of Philanthropy article, had been leaked
to ACT UP/SF; the activist group is not affiliated with ACT UP/Golden Gate and
has less than a dozen active members. A press release from ACT UP/SF stated
they want a "full explanation of the memo from the SFAF's board of directors."
	It's doubtful the group will get what it wants. The foundation recently
changed its procedures regarding public attendance and speaking at board
meetings but it still has one of the most restrictive attendance policies of
any local ASO [see sidebar, this page], requiring that people submit
notification before the meeting. The board chair ultimately decides whether to
invite the person to attend. Additionally, Christen and the foundation have
restraining orders against members Michael Bellefountaine and Ronnie Burk.
That court action was taken as the result of several outbursts that occurred
in 1996, including the infamous cat litter incident where Burk showered
Christen with used litter and kitty feces in a room full of PWAs who were
attending a candidates forum the foundation sponsored.
	Last month Burk was sentenced to perform 25 hours of community service - one
hour for every pound of litter he hurled on Christen. Charges against
Bellefountaine and others were dismissed.

Smoke screen?
	Bellefountaine told the B.A.R. that he is concerned about the amount of money
paid to many ASO directors, not just Christen. 
	"It's a problem in the industry and people are not getting served. It
wouldn't matter if all the clients were being served."
	Bellefountaine said one problem was that professional fundraisers (such as
Miller-Zeichek, producers of the AIDS Walk, and Dan Pallotta, producer of the
AIDS Ride) often make double-digit percentages of the money they raise, "and
the executive director has to make more than the fundraiser."
	He said he was annoyed by the secret memo, and that SFAF should just admit it
pays its executive director a six-figure salary that has historically
increased - sometimes by as much as 10.9 percent - and move on. 
	"If they want to pay her $500,000, great," he said. "Just be up front and say
that."
	He said SFAF's often-repeated claim that Christen is only criticized by a few
misogynist gay men is "a friggin' smoke screen," and added that advocating for
leaner salaries is not based on a hatred of women. "There are women living
with AIDS" who are desperate for more services, he pointed out, "and they [at
SFAF] serve a lot of women," as "the top people make $1 million" in combined
annual salaries.
	"What are they [SFAF] hiding? People who are asking 'why' are framed as nuts
by them. We shouldn't have to ask special permission to go to board meetings.
We shouldn't be debating if board meetings should be open or not,"
Bellefountaine said.

B.A.R. vendetta?
	"Why should they [open up meetings] and have cat shit thrown on them?" Azzani
asked. "People are killed at abortion clinics, and this reminds me of
Operation Rescue."
	Azzani said she doesn't understand why the SFAF - particularly Christen - is
attacked with such regularity in the gay press, notably the Bay Area Reporter.
"This is about a vendetta," she said. "Let's go after the virus. It just
breaks my heart and I think the B.A.R. has contributed to this. I feel
extremely saddened; it's a sad, sad day for all of us."