10 Raises Across 11 Years Earns SFAFs Executive Director $1.72 Million, At Minimum

TheLastWatch Analysis Pat Christen's Salary Top-Five Highest Paid Employees Media Coverage Another Year, More Raises at SFAF Another Year, Another Raise SFAF's Christen Breaks Through $200K Mark Pat Christen Asked to Resign

The salary SFAF pays its Executive Director, Pat Christen, has been a bone of contention in San Francisco for well over a decade. The illustration to the right printed in the Bay Area Reporter, is subtitled “Drowning in a Sean of Green.” Her salary is a well-kept secret until long after it is considered “old news.” Indeed, it’s such a tightly kept secret that accountability activists have to wait fully two years to learn what her salary had been, and by then she’s already been awarded one raise and is about to get another.

For instance, when she received a raise in July 2001 for the period 7/1/01–6/30/02, the community did not learn what her salary was until the tax return for that period was released to the public in May 2003, because it takes SFAF nearly a full year after a given fiscal year has ended before it prepares and submits its tax return to the IRS and then releases it to the public as a public record under IRS rules.

Reportedly, Pat Christen took a 12% pay cut in July 2002, but that cannot be verified until May 2004 when SFAF will release its tax return for the fiscal year that ended in June 2003.  It will be instructive to learn five months from now whether her pay cut did equal the reported 12%.

Readers should bear in mind three points:

1. Pat undoubtedly was rewarded with a raise in July 2003, but we will not learn of it until May 2005 when SFAF releases its tax return for the period ending in June 2004.
2. SFAF refuses to tell the public how much of Christen’s compensation is in the form of a bonus.
3. Christen is also the President of SFAF’s global affiliate non-profit, the Pangaea Global AIDS Foundation, and we are expected to believe she receives no salary for being Pangaea’s president and we are expected to believe that she does this presidential work pro bono.  Pangaea’s tax returns show no salary is paid to her.  But again, Pangaea also will not comment on whether Christen receives a bonus of some sort.

Exhorbitant salaries paid by SFAF are among the most egregious of its pandemic of wasteful spending.  For the period ending in June 2002, Lance Henderson, then deputy director for administration and finance was paid $174,054; the other four employees were each paid in excess of $124,000.  In addition to the top five-highest paid, and Christen, there were eight additional employees earning in excess of $50,000 annually in the tax period ending June 1995; for the period ending in June 2002, that number has shot up to 39 (plus the other six).   In part in order to have funds to launch Pangaea, SFAF fired nearly half of its staff between July 2002 and June 2003; the community will learn in May 2004 how many of the 39 employees earning more than $50K were retained or let go.

TheLastWatch is preparing an update to this page to show the salaries of the top-five highest-paid employees (in addition to Christen), and will post the update soon.  In the meantime, we wanted to get this page posted for your review.

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Pat Christen's Salary
Here’s a picture well worth a thousand words.  Her exorbitant salary, given the cuts in services she has forced onto SFAF’s Bay Area clients in order to launch Pangaea in Africa, is obscene.

Readers should note that the chart above shows only Christen’s base salary; it does not show the fringe benefits and retirement contributions that are also paid by SFAF, nor does it show any potential bonuses paid to Christen by Pangaea.

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Media Coverage

Another year, more raises at SFAF  Cover Story, Bay Area Reporter, 5/20/99 by Cynthia Laird     Reprint permission courtesy of the B.A.R.
	San Francisco AIDS Foundation (SFAF) Executive Director Pat Christen has continued her unbroken streak of salary raises, with her salary and bonus for the 1997–98 fiscal year reported at $183,892, according to federal Internal Revenue Service forms released Monday, May 17.  It is an 11.8 percent increase over the previous year, when Christen’s annual salary was reported at $164,494, and is approximately three times the salary she was offered when she landed the job nine years ago. Gustavo Suãrez, SFAF communications director, told the Bay Area Reporter Christen’s annual salary was $64,000 in 1990-91.  SFAF’s annual budget has also tripled since then, from $5.6 million to a reported $17.5 million for 1997–98.  Although the foundation will not release Christen’s 1998–99 pay figures until the year 2000, Christen has said her current salary — not including bonuses — is $175,000; she released that figure last month in response to a fake letter sent to media outlets by an unknown prankster, claiming she took a pay cut.  Suãrez told the B.A.R. that the $183,892 figure in the 1997–98 IRS form reflects a bonus that the board of directors authorized for Christen.  The board also determines Christen’s base salary. Suãrez declined to elaborate on Christen’s salary, and would not disclose how much of the $183,892 was a bonus.  “I know it's the focus of tremendous attention,” he told the B.A.R.  “I'm not going to break that down.”  He referred questions about Christen’s salary to the SFAF board. Paul Wisotzky, chair of the board, told the B.A.R. that the 990s “are accurate” for compensation paid to Christen during the 1997–98 year.  Further, he said that Christen’s salary is determined for a calendar year, unlike the 990s that are compiled for a fiscal year, and that her annual performance review is done in the fall.  Her most recent review last fall was chaired by board member Russ Testa, vice president for human resources at Mervyn’s.  As in previous years, Wisotzky said the board completed a comprehensive review of salaries for executive directors at similar size health-related nonprofits, and AIDS service organizations of similar size. “We feel her salary is within the market range,” Wisotzky told the B.A.R.  “Pat took over an organization that was sinking and in the red,” Suãrez said, adding that SFAF’s services have grown along with its budget and Christen’s salary over the years. SFAF’s top five employees also received raises, according to the latest IRS forms, which cover the period from July 1, 1997 to June 30 1998.  Each of the five employees and Christen had $13,122 contributed from the foundation to employee benefit plans and deferred compensation. Lance Henderson, director of finance and administration, saw his annual salary increase 7.6 percent in 1997–98, from $116,493 to $125,439; the salary for Rene Durazzo, director of programs, jumped a whopping 17.7 percent from $100,577 to $118,392; David Taylor, director of human resources, saw his annual salary increase 10.4 percent from $110,839 to $122,458. Women executives at the foundation, with the exception of Christen, fared less well: Jane Breyer, director of development, got a 4 percent raise, from $118,048 to $122,879; and Susan Haikalis, client services director, saw her salary increase from $82,733 to $84,807 — less than 3 percent.  This is the second year in a row when compensation for men and women were strikingly disproportionate. The 990 form indicates that 18 other employees are also earning more than $50,000 per year, an increase of two such workers from last year’s report.  According to the forms, SFAF’s total revenue in 1997–98 was $17,589,710, with $17,183,564 in expenses.  In contrast, the 1996–97 990 reported $16.7 million in revenue and $15.8 million in expenses.  Of the expenses reported for 1997–98, SFAF spent a total of $5.2 million on employee salaries and wages, not including Christen’s $183,892 salary and bonus. Nearly three-quarters of SFAF’s revenue — $12,793,885 — came from direct public support; government grants accounted for $3,929,580.  SFAF’s annual dinner last year brought in $419,516. Top
Another year, another raise  Editorial, Bay Area Reporter, 5/25/00 Reprint permission courtesy of the B.A.R.
	So the spineless San Francisco AIDS Foundation Board of Directors has awarded yet another raise to longtime Executive Director Pat Christen, whose annual salary and benefits now top $200,000.  We weren’t surprised when we reviewed the latest federal 990 tax returns, which cover the period from July 1, 1998 to June 30, 1999. That the returns are nearly a year old and the fact that the SFAF board remains one of the most silent around town when it comes to discussing important matters like, say, the executive director’s salary, once again demonstrates how out of touch the board is with regard to people living with HIV/AIDS. People living with HIV/AIDS who make more than $200,000 a year likely aren’t the clients being served by SFAF; their clients make considerably less than that and need all the programs and services the city’s largest AIDS service organization can provide. Unfortunately, that isn't happening.  The foundation has neither replaced its Latino program that was unceremoniously scrapped a couple of years ago, nor has it effectively lobbied for more affordable housing for PWAs.  In fact, we could argue that the money going to Christen’s bloated salary would be better spent paying high-priced lobbyists who could actually get something done when it comes to affordable housing development in San Francisco, and housing for PWAs in particular. But we won’t belabor that thought; who knows, SFAF might actually listen to us and start spending money on local lobbyists, thus siphoning even more money away from programs and services than the $5 million it already spends on employee salaries, not to mention another $800,000 or so in employee benefits. And we wouldn’t want to see that happen.   All the while, SFAF’s board has done nothing to curb the salary increases.  If Christen hadn’t been on maternity leave for part of the time covered by the 990s, her raise probably would have been more than the unusually small 2.3 percent increase that she received.  Her actual current salary remains a mystery, but it’s safe to say that it has increased. Lonnie Payne, who took over as board chair in January, has followed the same tired path as his predecessor, Paul Wisotzky, when it comes to Christen’s salary hikes and attempts to explain them to us.  “Pat's great, she deserves it” is basically what the board chair’s response has been all these years; or, “It’s in line with the latest study.” How many more years does the community have to hear these worn out excuses? And when will the community start demanding accountability?   Last July we editorialized about changes we’d like to see over at SFAF — mostly involving programs and housing, and to date, not surprisingly, none of them have occurred. Meanwhile, many PWAs must continue to live in roach-infested residential hotels, or literally wait for years on the SFAF-managed AIDS housing list, only to find there are no landlords that will take the subsidy once they finally get one. SFAF’s reserve fund is an obscene $7 million, according to the 990s.  While we certainly understand the need to keep a healthy amount of funds in savings for a “rainy day,” we can’t help but wonder why the foundation hasn't seen fit to spend a modest $200,000 to bring back the Latino program that would help hundreds of clients.  Reports of the increasing incidence of HIV/AIDS among communities of color have been in the news over the past year, yet SFAF does not find it necessary to restore these services.  That’s a shame. We would like to write about the good that SFAF’s board has done over the years, but since they’re so tight-lipped, getting even positive information out of them is impossible.  The board’s answer to serving the community is to hold two pathetic “open” meetings this year — the second meeting is next month and is only open to the public for a portion of the session — where cameras and recording devices are prohibited, and you have to call to get your name on a damn list to even attend.  To address the board, SFAF has to know in advance what you're speaking about. That’s serving the community?  What a joke. [TheLastWatch notes that when San Francsico’s voters passed an upgrade to its open meetings/open government “Sunshine” law in November 1999, SFAF immediately cut the number of board meetings open to the public from four per year that had been held in previous years to the two required meetings set by the Sunshine Ordinance change approved by voters.  Despicably, Supervisor Tom Ammiano had a hand in crafting the Sunshine Ordinance change that ultimately benefited his friends over at the San Francisco AIDS Foundation.  That’s not greater accountability, Mr. Ammiano, it’s less … and Pat Christen knew exactly what she wasa doing when she cut back on open-to-the-public board meetings.] Enjoy your raise Pat.  Don’t spend it all in one place. Top
SFAF's Christen breaks through $200K mark  Bay Area Reporter, page 3, 5/25/00 by Terry Beswick     Reprint permission courtesy of the B.A.R.
	After years of steady increases well above Bay Area’s rising cost of living, San Francisco AIDS Foundation Executive Director Patricia L. Christen’s annual salary as leader of the city’s largest AIDS service organization rose by only about 2.3 percent in fiscal year 1998–99, according to the ASO’s federal Internal Revenue Service reports released last week. Christen’s raise, set by SFAF’s board of directors, was a relatively modest $4,227, from $183,892 to $188,119.  Adding in an annual $13,201 benefit package given to all of SFAF’s top earners last year, her total compensation package broke the $200,000 mark for the first time, for a grand total of $201,320. Now in her 10th year as executive director at SFAF — one of the nation’s leading ASOs with prevention, housing, counseling, treatment education, and advocacy programs — Christen got an 11.8 percent raise in 1997–98, keeping pace with a series of similar increases dating back to fiscal year 1990–91, when she took the top management position for $64,000.   “Pat’s salary represents the board’s support for her leadership,” board chair Lonnie Payne told the Bay Area Reporter.   In recent years, Christen, 40, has garnered escalating controversy over the increases among some local critics.  Responding to this criticism, Payne noted that the director’s compensation “is well within the market range for large nonprofits.” SFAF’s total income in 1998–99 was $18,099,652, an increase of about half a million dollars from fiscal year 1997–98. “We definitely met our fundraising goals,” said Payne.  The organization’s budget has more than tripled in the last decade.   Assets on hand at the end of the year show that the nonprofit has maintained a healthy reserve, having grown to over $7 million. Total expenditures on client services and other programs during the last fiscal year were reported to the IRS at $12,843,199, an increase of less than $400,000 from the previous year. Before taking over as board president in January, Payne participated in the board committee that conducted Christen’s annual performance review.  He said that while the executive director saw a smaller percentage increase compared to previous years, this does not suggest that the board was unhappy with Christen’s performance. “I really feel that she's one of the best executive directors out there,” Payne said, adding that the rest of the board was “unanimous” in sharing this opinion. Citing SFAF board policy, Payne would not disclose Christen's current annual salary for the year 2000.  Nor would Payne discuss whether the executive director’s reported salary included bonuses. He also refused to explain the board’s relative drop in increased remuneration for Christen last year. However, in addition to the executive director, the IRS requires that nonprofit organizations report the five next highest paid employees on their annual 990 forms. Of the top five, Lance Henderson, SFAF’s deputy director for finance and administration, took home the largest salary, as he did in fiscal year 1997–98. And in fiscal 1998–99, Henderson saw the biggest increase of the other top earners, winning a $15,869 hike in compensation over the previous year, from $125,439 to $141,308 — a jump of 12.65 percent.  Henderson’s increase, notably, occurred during the same period as Christen got an increase of 2.3 percent.  Other reported top earners, who received compensation ranging from about $108,000 to $140,000, got raises of around 4 or 5 percent. Explaining that the executive director, rather than the board, sets compensation for staff members under her supervision, Payne referred questions concerning the financial manager’s raise to Christen.   But at press time, Christen had not returned a call seeking comment on the information reported to the IRS. Payne did, however, volunteer a possible explanation for Christen’s decision to disproportionately boost Henderson’s income. “Some of that was because [Henderson] got a special bonus because of Pat’s maternity leave last year,” Payne said. Christen took a four-month maternity leave in fiscal 1998–99, Henderson later confirmed, adding that in addition to a “small bonus,” his compensation included a “temporary raise.” [TheLastWatch notes Henderson was speaking “misstatements,” known in the vernacular as a lie:  In every one of the three tax returns that have been released since this B.A.R. article was printed in May 2000, Henderson received three more raises; the "temporary raise” was not in fact, temporary, it was permanent.] Client services director Susan Haikalis, meanwhile, was bumped off the top five earners list by Ralph Jennings, SFAF’s budget and fiscal contracts manager, who took in $108,793 last year, including benefits. Overall, the ASO’s approximately 100 employees’ total salaries actually decreased to $5,068,011 last year, a cut of $184,742 from a total of $5,252,753 in 1997–98. SFAF’s five highest paid independent contractors also are reported on the 990.   Among them, Pallotta and Associates got the same amount for producing the 1999 California AIDS Ride as in 1998: $180,000.  Miller, Zeichik and Associates, which produces the annual AIDS Walk, also got flat funded, receiving $95,000 for producing last year’s event – also the same amount as the previous year. Top
Pat Christen Asked to Resign  Guest Opinion, Bay Area Reporter, page 3, 4/22/99     Reprint permission courtesy of the B.A.R.
	Criss Romero, the then President of San Francisco’s Harvey Milk LGBT Democratic Club and a former manager at SFAF wrote a guest opinion piece — It’s time to clean up the San Francisco AIDS Foundation” — published on the editorial page of the Bay Area Reporter, reporting that as far back as July 1998 the club had passed a resolution asking for Pat Christen’s resignation. Five years later, Christen is still SFAF’s executive director, and many of the issues Romero wrote about in 1999 are still true in 2004. Read his guest essay on the MediaWatch page. Top

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Copyright (c) 2004 by Patrick Monette-Shaw.  All rights reserved.  This work may not be reposted anywhere on the Web, or reprinted in any print media, without express written permission of the author.  E-mail him at pmonette-shaw@earthlink.net.