Compensation Package of Museum CEO Comes Under Scrutiny

The income of the head of the Museum of Modern Art, in New York, was considerably higher than the institution reported to government agencies for several years, reports The New York Times.

Glenn D. Lowry, director of the museum, received a compensation package totaling $1.28-million during the year that ended June 30, 2005, the museum reported on tax forms it is required to file with the Internal Revenue Service and New York state officials.

However, a trust created by two of the museum’s trustees, David Rockefeller and Agnes Gund, to persuade Mr. Lowry to take the top position paid him a total of $5.35-million from 1995 to 2003.

The trust, named the New York Fine Arts Support Trust, also purchased a $3.4-million apartment from Mr. Lowry for the museum in 1999. He received a $1.3-million profit on the apartment, so told the museum he would not expect it to set aside retirement money for him in a deferred-compensation plan, the newspaper reported.

The payments were not reported until last year, when the New York State attorney general’s office voiced concerns.

In response, the museum listed some of the trust payments in a supplement and filed with the attorney general’s office and GuideStar, a Web site that compiles data about charities. The office was satisfied by the museum disclosure.

Some former government officials say that the museum’s efforts fall short.

Marcus S. Owens, a lawyer who led the branch of the Internal Revenue Service that monitors nonprofit groups, said, “They’ve essentially admitted to GuideStar that more compensation was paid than has been reported. Unless they filed an amended return with the I.R.S., though, they have a federal tax problem.”

Mr. Lowry was among the nonprofit leaders included in The Chronicle of Philanthropy’s most-recent compensation study.

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