What is the total compensation of president and CEO Brian A. Gallagher?
Brian Gallagher’s total compensation in 2015 was $1,236,611. This includes $532,028 in base compensation, $175,000 in bonus and incentive compensation (approved by the Executive Compensation Committee and Board of Trustees based on his successful performance of specific objectives), $142,553 in other reportable compensation, and $387,030 in health insurance and retirement benefits. For full details, please see Schedule J of IRS Form 990.
Mr. Gallagher has donated to United Way throughout his 35 year career at the charity and is a member of the Tocqueville Society, the honor society of the organization’s most dedicated donors.
Aren’t the salaries listed for Mr. Gallagher and others high for a charitable organization?
United Way Worldwide (UWW) salaries are comparable to other top charities and foundations in the United States, including members of the Leadership 18, a group of the country’s largest, most recognized public charities, as well as U.S. based charities with worldwide missions and scope of activities and certain private foundations with philanthropic missions similar to UWW. United Way is the world’s largest privately-funded charitable organization, with nearly 1,800 locally-based United Ways in more than 40 countries and territories. United Way raises in excess of $5 billion annually around the world.
How are salaries determined?
The Executive Compensation Committee of the Board of Trustees commissions an annual review by an independent consulting firm to evaluate UWW’s compensation against the competitive market. The evaluation is intended to ensure that the compensation program falls within a reasonable range of competitive practices for comparable positions among similarly situated organizations, specifically, the nation’s largest public charities (Leadership 18) and certain private foundations. Following the review, the Committee evaluates UWW’s overall competitiveness and the appropriateness of the overall program, and then makes recommendations to the full Board of Trustees on salary adjustments, annual incentive opportunities and performance goals and objectives for the upcoming year.
How do you choose which organizations are used to benchmark CEO compensation?
In 2015, UWW benchmarked itself against other large U.S. based charities that comprise the “Leadership 18,” a group of the largest and most recognized public charities in the United States, as well as other U.S. based charities with worldwide missions and scope of activities and certain private foundations with global philanthropic missions similar to UWW.
Why is Mr. Gallagher receiving $175,000 in incentive pay?
The organization strongly believes that pay should be tied to performance. A significant portion of Mr. Gallagher’s pay is tied to the achievement of organizational goals.
How is performance-based pay factored in, or is all of this pay guaranteed?
Performance-based pay is not guaranteed. UWW uses performance-based annual incentive compensation in order to place a significant portion of the senior executives’ pay at risk. The incentive plan measures such things as United Way network revenue, strategic growth, UWW outreach, and community impact. The Board of Trustees approves goals for the entire network on an annual basis and measures achievement against those goals at the end of each year. Incentive pay is based upon both individual and organizational performance.
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