In his book Derek writes: "No one asked if I was doing it for the money. They knew me too well to think that, and I was very clear about the salary structures. They would be in line with those of other foundations of the same size - that is a bit more than salaries at academic institutions."(page 204)
According to the 990 forms Derek's global compensation (including the contribution to the employee benefit plan) was:
$813.700 for 2018 and $974.481 for 2019.
One cannot but notice a raise of $160.781, that is a 20% increase in 2019.
Questions: when, how and why was this compensation increase decided? Was the previous one really insufficient? The minutes of the February12, 2019 Board meeting provide an explanation. The Board unanimously estimated such 'additional compensation, reasonable'.Indeed.
From the minutes of the February 19 Board meeting:
At 11 :45 PM EST, Dr. Yach and Mr. Harding disconnected from the meeting and did not participate in the remainder of the meeting.
Ms. Feldman then reviewed the extraordinary efforts and commitment of the Foundation staff and the leadership. She highlighted, in particular, the tireless efforts of Dr. Yach and Messrs. Harding and Lutzweiler during the sixteen-month start-up phase of the Foundation ending December 31, 2018 (the "Start-Up Phase"). The Start-Up Phase presented a wide range of structural and staffing challenges to assure an accelerated and impactful launch of the Foundation's mission and programs. The Foundation has accomplished a number of important milestones during the Start-Up Phase, including conducting a global poll on smoking habits and attitudes, hosting scoping panels with stakeholders, conducting conferences with small-holder tobacco farmers and Malawi government officials, attending and speaking at conferences around the world, and vetting significant medical and scientific research grants which have been approved at today's Board meeting. In the absence of a formal bonus plan, the Board Governance Committee recommended to the Board to provide Dr. Yach, and Messrs. Harding and Lutzweiler a one-time bonus amount in recognition of their steadfast dedication to the Foundation's mission during the Statt-Up Phase and to provide similar recognition to the remaining Foundation staff based on their tenure and level of responsibilities at the Foundation. In setting the amount of such additional compensation which is reasonable, the Board Governance Committee consulted with Quatt, an independent, recognized compensation consulting firm. The Chair also suggested that the Board Governance Committee confer with Mr. Jeffers, HR Talent Director, regarding staff compensation, performance reviews and staff retention.
[Board Action 2019:1:6) Approval of Bonus Compensation Upon motions duly made, seconded and unanimously carried, the Board adopted the following resolution: RESOLVED, that the Board directs that (i) a one-time bonus amount be awarded, subject to all appropriate and required withholdings, to Derek Yach, Tom Harding and Jim Lutzweiler, respectively, as recommended by the Board Governance Committee and (ii) a bonus pool be set aside, as recommended by the Board Governance Committee, and divided by the President and Chief Operating Officer of the Foundation among those staff members who were employed on December 31, 2018, subject to all appropriate and required withholdings, based upon each such staff member's tenure and level ofresponsibilities at the Foundation through such date. The Board meeting adjourned at 12:10 PM EST.
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