Salary Data Included a ‘Hypothetical’

To the Editor:

Thank you for including the American Heart Association in The Chronicle’s survey featuring compensation and benefits for executives at top nonprofit organizations (“Executive Pay Rises Modestly,” September 30). We would like to clarify information about benefits listed for our chief executive officer, M. Cass Wheeler.

As footnoted, Mr. Wheeler’s benefits include $779,200 in severance pay, but this is largely hypothetical. The association’s IRS Form 990 for fiscal 2002-3 notes that potential severance pay is listed as required by Internal Revenue Service regulations. It also notes, “The provisions which would trigger payment are considered remote and not likely to result in an actual payout greater than $191,000.”

The entire severance amount listed by The Chronicle would only be paid if the American Heart Association terminated its CEO’s employment without cause. If our chief executive terminates employment after giving adequate notice, the severance paid would be $191,000.

Neither of these scenarios occurred in fiscal 2002-3, so these benefits were not paid. Actual benefits paid totaled $68,124.

Nancy Brown
Chief Operating Officer
American Heart Association
Dallas