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  • May 9, 2025

Rick Ernst: Eye-popping pay for charity execs casts doubt on disease-curing mission

May 1, 2013 by Editor 8 Comments

AS MANY BENICIA RESIDENTS PLAN for the upcoming annual Relay for Life event, a fundraiser for the American Cancer Society, I’d like to pose a question: “Do the participants know where the money goes?”

In an article in last year’s Benicia Herald titled “First Street ribbons mean Relay approaches,” we learn that the money goes for “research and other services.” But the evidence suggests otherwise.

In an article in the December 2011 issue of CharityWatch’s Charity Rating Guide & Watchdog Report, we see that the head of the American Cancer Society since 1992, John Seffrin, made $1.3 million in total compensation and benefits in fiscal 2009. His payout in fiscal 2010 increased to $2.2 million. This puts him at No. 2 on CharityWatch’s list of Top 25 Compensation Packages.

According to ACS’s 2010 tax filing, Seffrin was paid $1.5 million for a supplemental SERP, which usually stands for “supplemental executive retirement plan.” This begs the question: Why is Seffrin receiving a retirement payout before he’s retired? Greg Donaldson, ACS’s VP of corporate communications, told CharityWatch that the $1.5 million was a retention benefit rather than a retirement benefit, approved by ACS’s Compensation Committee in 2001 to “preserve management stability” and for “succession planning.”

John Seffrin has dedicated much of his life to the cancer cause. He has been impacted by the disease personally — his grandmother and mother both died of cancer, and his wife of 43 years experienced breast cancer. It is not clear why he would require a $1.5 million payout, in addition to his generous $700,000 in other compensation and benefits, as motivation to continue leading the top cancer charity in the U.S.

There’s more. CharityWatch was also surprised to learn from ACS’s fiscal 2009 tax filing that upon retirement, three of Seffrin’s subordinates received pay and benefits packages of $1.9 million, $1.5 million and $1.2 million, respectively. A major chunk of these payouts was for accumulated pension and retirement benefits that were not disclosed by the Society until the fiscal year in which the executives retired.

If Seffrin’s underlings received such large, previously undisclosed payouts upon retirement, it is reasonable to assume that he will eventually get an even bigger payout. But when CharityWatch recently asked about Seffrin’s likely retirement benefits, Donaldson dissembled, saying, “We believe that any attempt to communicate any future payments to or the future value of any potential retirement benefits would be totally speculative and would therefore be of little benefit and indeed, potentially misleading.”

While the Society won’t reveal Seffrin’s anticipated retirement payout, it has planned to set aside $16.8 million in SERPs for him and its other most highly paid executives — in addition to the $589.2 million planned for future pensions and $57.7 million for post-retirement medical, dental and life insurance coverage for all ACS employees who qualify, according to the charity’s 2010 audit.

ACS should not keep donors in the dark about what portion of these millions of dollars set aside for future retirement benefits will directly benefit its already highly paid CEO.

But the more pertinent question for Benicians, particularly those residents who participate in the Relay for Life, is: Do you know where the money you raise is going? Is it to ensure that John Seffrin won’t be out on the street when he retires? Given the evidence, I’d say one thing we know for certain is that the money isn’t going to “cure cancer.”

I’m sure relay participants “feel good” about their participation. But frankly, I don’t “feel good” about giving hard-earned money to people who don’t need it — not in this economy, not ever. I prefer to give money to worthy recipients like the Burzynski Institute, where doctors are actually curing people who have cancer, especially children with brain tumors, and doing it without the medically expensive and physically damaging chemo and radiation therapy that the American Medical Association protects so ardently.

It may be that this all falls on deaf ears — to which I can only say, good luck everyone! Keep forking that money over to Mr. Seffrin. But you should know that it’s the same story for the Avon Walk for Breast Cancer, Komen Walk for the Cure and many other organizations’ fundraisers: They are designed to improve their bottom line — certainly not to cure any disease!

Benicia resident Rick Ernst is a former member of the Planning Commission and candidate for City Council.

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Filed Under: Opinion

Comments

  1. petrbray says

    May 1, 2013 at 7:29 pm

    Rick: Thanks for the update…I have watched this same ludicrous activity with respect to Crohn’s Disease…in Australia, England, and Texas they are arresting Crohn’s with a 3-antibiotic therapy…but elsewhere, millions are spent on “immuno-suppressive” worthless meds which only suppress the natural immune system and allow pathogens to devour the chronically ill–Western Medicine and Big Pharma and a thousand “societies” are not interested in cures, only enhancing their bottom lines in the name of “research”…Symptom-suppression of the chronically ill is BIG business…problem is, people continue to die. We are a Predator Nation and perhaps a Predator Species as well. Good luck to us all, “baaaaaa” said the sheep, following to the abyss– pb

    Reply
  2. Gerry says

    May 2, 2013 at 1:18 pm

    Oh my gosh. You are mad at and resent anyone who makes a sizable salary. Shame on you for discouraging people from participating in this event. The American Cancer Society has, and continues to donate money toward cancer research. Sure, the head honchos are making hefty salaries – but in my opinion, they are earning it. They are managing HUGE amounts of money. The groups contributions towards research far outweigh the cost of the salaries they are paying.

    Reply
    • Robert M. Shelby says

      May 2, 2013 at 7:30 pm

      Gerry, what’s your documentation? Have you a source for actual figures on their finances?

      Reply
      • Watching says

        May 2, 2013 at 10:22 pm

        Old poet, you sure spend much time asking others to research questions you have. It really makes you look lazy. Take some time to do your own research, you may learn something.

        Reply
  3. DDL says

    May 2, 2013 at 5:53 pm

    I thought I would check “CharityWatch” out; here is what hit me:

    Why don’t we make all of our information freely available on the Internet?

    CharityWatch needs your support to improve the effectiveness of charitable giving by providing donors with the information they need to make wise giving decisions.

    Donations of $50 or more entitle you to…

    Struck me as a tad odd that to watch contributions to Charities you have to make a contribution to watch charities.

    Reply
    • Robert M. Shelby says

      May 2, 2013 at 7:37 pm

      Dennis, here’s something I agree with you about. Moreover, I find myself leery of oft-repeated TV ads showing the same, sad eyed animals in cages and the same, sad faced children in Latin American & African slums paraded by the same, white-bearded, fat-bellied old man. Each ad duns us for money to save all the poor, downtrodden, abused, sick, hungry animals and children. How many animals get cured and saved?What’s keeping that old man so fat?

      Reply
      • DDL says

        May 2, 2013 at 10:05 pm

        RMS asked: How many animals get cured?

        I am really not sure on that, but you may find
        your answer here.

        Reply
  4. Gerry says

    May 3, 2013 at 12:27 pm

    I am just tired of Ernst always complaining about people who make hefty salaries. Until he walks in their shoes and does the work they do, he doesn’t know whether they actually earn the money or not. I am sure if it were him earning that kind of money, he would not have much to say. If you have read any of his articles or comments he posts, many of them are about the same issue. He is a bitter man.

    Reply

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