Tuesday, July 31, 2007

Spaulding Update

The CitiCenter has posted a letter in response to Geoff Edgers article in the Boston Globe about Josiah Spaulding's salary and bonus.

An anon commenter on my last post put it best: "It seems they're all prepared to go down with ship!"

Let's just take this paragraph from the letter:

What the Globe article doesn’t convey is that Mr. Spaulding’s compensation has already been reported by several Globe columnists in previous years, dating back to 2003. In fact, internal decisions to offer Spaulding the compensation reported in the Globe dates back to 2001.

Just like Mr. Spaulding's assertion that he was taking a paycut was really a shell game, this statement by the CitiCenter Board makes it appear as if the compensation was discussed in the paper and that it was found to be no big deal.

In fact, the article on Spaulding's salary that appeared in 2003 was definitely raising questions about the perceived excess. And it wasn't just the "Globe columnists" raising the question:

Spaulding's compensation package for the fiscal year ending in May 2002, the most recent available, was $536,159 a year. This figure was the first thing a group of nonprofit experts noticed when they were asked to review the Wang Center's Internal Revenue Service filings. They noted that he is paid far more than is expected by any established guidelines.

"Clearly, there's an issue here of executive compensation," said James Phills, director of the Executive Program for Nonprofit Leaders at Stanford University's School of Business.


William Crittenden, a professor in Northeastern University's College of Business Administration, said that Spaulding's salary still appears to be "out of whack." "If I were a board member, I would question whether we need to compensate our director at this level considering our recent shortfall," said Crittenden.

In that article, (just as now,) the only people who seem to be defending the salary are the Board Members of the CitiCenter and Mr. Spaulding himself.

The other aspect of the shell game is that the letter from the Death Star wants to make it appear that this bonus was common knowledge. I don't believe the bonus has ever been reported, but I can't really confirm that.

1 comment:

Anonymous said...

Check out what he says!
Stop payment on those checks!!!