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Did
you get a big pay raise last year?
They did!
WAMC's surplus pledge $$$
lavished on exec salaries
Is this what they mean by not-for-profit?
For a complete listing of WAMC Inc.'s
board of trustees,
along with contact information, Click
Here!
To view WAMC, Inc.'s IRS returns
for Fiscal 2001, Click
Here!
for Fiscal 2000, Click
Here!
by G. M. Heller
Washington, D.C.
Updated: Wednesday, March 06, 2002
Whether WAMC 90.3-FM's listeners
know it or not, their pledge dollars last year were used to fund some of
the biggest salary increases in WAMC, Inc.'s 21-year history.
Station boss Alan S. Chartock took a personal increase of more
than $7,000 on an already generous salary, while another
executive pocketed an extra
$60,000.
(You read
right!)
WAMC,
Inc. chairman Alan S. Chartock enjoys a good laugh while accepting
city's $100,000 donation from Albany Mayor Gerald D. Jennings at groundbreaking
ceremonies for WAMC Performing Arts Center.
These pay outs occurred despite piously 'sincere' declarations on-air
that pledge monies have been desperately needed to fund not only basic
station operations but also to construct and to equip the now open
WAMC
Performing Arts Center.
WAMC, Inc. operates the Albany, NY based National Public
Radio affiliate, along with a slew of smaller upstate New York
and western Massachusetts FM radio outlets that rebroadcast WAMC-FM's
signal under the moniker WAMC Northeast Public Radio Network.
The WAMC Pirates have obtained copies of WAMC, Inc.'s
federal tax returns, requested under the Freedom of Information Act (FOIA)
from the U.S. Internal Revenue Service. These documents show that
senior management has liberally spread lavish pay hikes amongst management
personnel at the station.
Tax-exempt organizations must file annually with IRS
So-called not-for-profit, tax-exempt organizations like WAMC,
Inc. are required annually to report to IRS a detailed picture of organization
finances. WAMC, Inc., which claims 501c3 'exempt'
status as a so-called non-profit, charitable, educational institution,
files a Form 990, 'Return of Organization Exempt From Income Tax'
at the close of every fiscal year.
WAMC, Inc.'s latest return, for fiscal
2001, covers the tax year beginning July 1st, 2000 and ending June
30th, 2001. This year's return, as in all years past, is signed by
station chairman/ executive director Alan S. Chartock. It is dated
November 13th, 2001.
The report filed with IRS offers a distinctly different picture of the
station's finances than that expressed on-air almost daily by Mr. Chartock,
by his assistant executive directors David Galletly and
Selma
Kaplan, and by other WAMC-FM on-air personalities.
Keeping "the flame" very much alive
These
station executives, in a position to know of the vibrantly healthy financial
condition of the station, have consistently claimed on-air that the station
desperately lacks sufficient capital necessary to meet operating requirements,
and that it is in an almost perpetual state of near dire poverty.
These same folks have repeatedly intoned that ever more pledge dollars
are needed from listeners as well as ever-increasing support from underwriters
so that the station, "this dream of public radio," as boss Chartock
tearfully likes to intone on-air, can "keep the flame alive" and beat back
"the enemies of public radio" -- another mantra favored by the boss.
"Only three months operating expenses in the bank."
Another common refrain during these thrice-annual radio pledge drives
has Messrs. Chartock, Galletly and Ms. Kaplan implying with utmost sincerity
that the station is but three months away from bankruptcy.
Mr. Chartock, who in effect is WAMC's, Inc.'s chairman-for-life,
even spells it out in this semester's pre-pledge drive pep talk on the
station's Web site. With what can only be assumed is a straight face, he
actually tells his Internet audience: "It
is true that, as always, there will be just a few months operating expenses
in the bank."
$600,000 drive starts this weekend - highest goal ever - banking on
P. T. Barnum
The newest pledge beg-athon begins this weekend and seeks to
raise yet
$600,000 more from listeners. For WAMC,
Inc. this represents the highest amount ever sought from the public
in one fund drive. If history and P.T. Barnum are any guide to suckerdom,
chances are the public will fall for the con and cough up the dough.
Awash in cash
The reports filed with IRS exhibit a far different portrait of the station
than one of destitution. The organization is literally awash in cash,
$5.32
million of it this past year alone. Instead of facing budget
shortfalls, the station, for at least the past 12 years, has literally
been a cash machine.
The fact is that money is pouring into station coffers faster than ever
before - a torrent more aptly describes the flow. It comes in at
a rate of nearly $14,600 per day! -- that's
every
day, 365 days a year. Some of that even comes in the door in cash!
Reported revenues as of the end of June 2001 are up nearly 20%
over
the year before. That translates to $854,000
more
taken in compared to just one year earlier.
Total station revenues surpassed
$5.32 million
last year, and there is no reason to believe that the present fiscal year's
figures will be any less, especially with fundraising goals now pegged
at $600,000 per fund drive.
A not-for-profit charitable institution, or for-profit
media company?
Unfortunately, it is also apparent from the same IRS filings that station
executives have not only failed to be forthcoming with the listening public,
but that they have been on a spending spree, raiding the cookie jar and
lavishly padding their own wallets. Big raises are being taken
by dipping into the surplus dollars left over after the station's operating
expenses are paid for out of listener contributions, government grants,
and corporate underwriting.
Some would say that WAMC, Inc. not only mimics the way a private
for-profit
corporation operates, but that it actually crosses the line that separates
not-for-profit
from for-profit. A for-profit corporation raises capital,
creates or distributes a product, generates revenues, pays its operating
expenses and then takes what is left after taxes - the profits - and splits
these amongst its owners in the form of dividends.
The key difference between a for-profit entity and the way WAMC,
Inc. seems to be run is that the station enjoys the not insignificant
benefit of tax-exempt status from the federal government and also the state
and local governments where it operates. For example, the land and
the buildings it owns are all tax-exempt. In addition, the station's
corporators paid literally nothing for the original federal broadcast
license to operate over the public's airwaves.
Also, because the station is registered with IRS as a not-for-profit,
charitable, educational institution (and is supposed to be run that
way), that is the only reason that listeners and corporate underwriters
are able to take federal and state income tax deductions on contributions
and for program underwriting.
WAMC, Inc. is not supposed to be a for-profit enterprise dividing
its earnings amongst its owner/operators. Yet, it would appear that this
is exactly what senior management has been getting away with for
years, especially this past year as once again it divvied up its surplus
capital to give senior management some of its biggest raises ever.
The station's IRS return shows that executive salaries were hiked with
increases ranging from
7.25% all the way up
to 46.4%. Less than 3% of that (the present
rate of U.S. inflation) can be explained away as cost-of-living adjustments.
Chartock fails to respond - Nobody wants to comment
Attempts to reach executive director Chartock for comment have been
fruitless. He has failed to return calls made to his offices at the
radio station and at SUNY, to WNYT-TV Channel 13, Albany,
NY, where he appears on-air to give what is labeled political commentary
on the local evening news, and to his home in Great Barrington, MA.
David Galletly, Mr. Chartock's second-in-command at the station, was
contacted at his office. When asked how the station could
justify giving such steep pay raises to management, he responded: "I really
have no comment to you."
Alan D. Miller of Delmar, NY, one of WAMC, Inc.'s original
corporators and a long-time board of trustees vice-chairman and member
of the station's executive committee, was contacted in an afternoon telephone
call. When asked to justify the steep raises given to management
personnel, he responded: "I'm.....I'm not prepared to answer these questions
at this point without any information in front of me....so thank you very
much." Mr. Miller then abruptly hung up in the middle of his caller's
next question.
Salaries to rank-and-file employees remain about the same
WAMC, Inc.'s cash machine seems quite selective in whom it rewards.
It appears to benefit only those at the top of the station's 'food chain'.
Salaries to rank-and-file employees appear relatively static.
WAMC, Inc.'s corporate board in the post-Enron Age
Direct responsibility for WAMC, Inc.'s fiscal management resides
day-to-day with the station's executive director, Mr. Chartock, but the
board of trustees ultimately has legal and fiscal responsibility for what
goes on under its watch. In addition, that board's executive committee
is supposed to be the final arbiter of proposed salary increases for senior
management.
In the wake of the stunning collapse at Enron Corporation, it
is also apparent though, that corporate boards and their executive committees
all too often fail to keep watchful eyes on senior management. This
is especially so when boards, like Enron's or WAMC, Inc.'s, are
led by what seem to be dominating, egocentric chairmen. There also
appear to be instances, and WAMC, Inc. may be one such, wherein
board members would likely prefer not to know what is going on within
the company.
In the case of WAMC, Inc.'s board, the probability of ostrich-like
behavior is compounded by the fact that all of the trustees appear
to have been hand-picked by board chairman Chartock.
Thomas S. W. Lewis of Saratoga Springs, NY, another board vice-chair
and executive committee member was contacted. As soon as he heard
that the caller was writing a story about the station's IRS Form 990 and
was seeking answers to a few questions, he interrupted saying, "Excuse
me, I am not interested in talking with you." Mr. Lewis then recommended
instead that the reporter should write any questions to WAMC, Inc.
at its Central Avenue address in Albany. He then terminated the call.
A third executive committee member contacted by phone was Joseph
Browdy of Hillsdale, NY. He too is a board vice-chair at the
station. As soon as the reporter identified himself and the reason
for his call, Mr. Browdy quickly ended the conversation, saying, "Not at
all interested. Bye!"
The 'real' shareowners are not allowed to vote for the station's
trustees
Not only has boss Chartock hand-picked the trustees who serve on the
station's board (a loyal group that re-elects him annually to the post
of chairman), but another aspect to this plainly incestuous set up is that
within the corporate by-laws of WAMC, Inc., there exists no
democratic process by which listener-members are allowed to choose those
who sit on that board of trustees.
The station's paid membership, numbering thirty thousand according
to WAMC, Inc.'s own Web site, are omitted from being able
to vote for a slate of director/trustees. Incredibly, they have no
specified legal rights in this regard within the station's corporate by-laws.
Absolute control
This was apparently no accident. It is solely because of the way
in which Mr. Chartock, one of the four original corporators, set up the
primary incorporation documents in 1981, seemingly to guarantee his permanent
control of the station. (If you were to pull aside anyone who has ever
worked at WAMC, Inc., they would tell you that that control is absolute.)
Amazingly, that slick incorporation set-up was approved by the New York
State Board of Regents, which at the time in 1981 had jurisdiction over
the approval process involving the provisional charter of the then-proposed
non-stock,
educational corporation. (In retrospect, maybe the Regents'
stamp-of-approval is not so amazing in light of all that is now known and
understood about Mr. Chartock's political connections inside the State
Capitol even back then. Just how many other New York State employees
has anyone ever heard of that were approached to take over a valuable radio
broadcast license for free? Also see:'UAlbany
fails to enforce SUNY policy against Chartock for full-time 'moonlighting.'
)
David Galletly was asked why the station's paid listener-membership
are not allowed to elect WAMC, Inc.'s board of trustees. He
was again less than forthcoming. "I have no comment on that," he
said.
The fact is that the station's loyal listeners who pledge money - in
theory the real 'shareowners' of the station - are not granted any
rights whatsoever to determine who shall be a director/trustee. Such
shareowner rights are a sacrament in the for-profit corporate world.
Refuses to publish station's Form 990 online
WAMC 90.3-FM has long refused to post its IRS returns online
on the station's Internet Web site (www.wamc.org),
the fear likely being that pledge-giving members might get curious as to
how their money is actually being spent.
David Galletly's response to a question about why the station does not
post its IRS Form 990 online was the refrain, "I have no comment for you."
Follow the money
Published below is a list containing the names of WAMC, Inc.
management personnel who received hefty salary increases this past fiscal
year. For them, it has been a very good year indeed at WAMC 90.3-FM.
The real question for listeners remains: Is this truly public, not-for-profit
radio - or is it in fact something else?
(Editor's Note: For the benefit of readers, the
WAMC
Pirates are publishing WAMC, Inc.'s IRS returns for
Fiscal
2001 and Fiscal
2000.
Addendum: WAMC, Inc.'s executive committee of the board
of trustees is comprised of the following individuals: In addition
to Mr. Chartock, whose title is chairman, there is Robert Norris, vice-chair,
of Great Barrington, MA; Alan D. Miller, vice-chair, of Delmar,
NY; Thomas S. W. Lewis, vice-chair, of Saratoga Springs, NY; Joseph
Browdy, vice-chair, of Hillsdale, NY;
James P. Menzies,
corporate treasurer, of Coxsackie, NY; Judith Grunberg, assistant
corporate treasurer, of Valatie, NY; and
Jeanne B. Hunter, corporate
secretary, of Bearsville, NY.
For a complete listing of WAMC Inc.'s
board of trustees,
along with contact information, Click
Here!
To view WAMC, Inc.'s IRS returns
for Fiscal 2001, Click
Here!
for Fiscal 2000, Click
Here!
Also, see related letter: 'P.S.
Isn't it wonderful .... '
WAMC, Inc. personnel
receiving steep salary increases for Fiscal 2001.
[Editor's Note: The term 'total compensation
package' as used below reflects 'compensation' plus
'contributions
to employee benefit plans and deferred compensation'.]
Alan
S. Chartock, WAMC, Inc.'s chairman-for-life and executive
director. His raise of $7,220 equals a pay increase
of 7.25 %. His total compensation package
is
$106,819. (His WAMC, Inc. salary is
not Mr. Chartock's main source of income. His other full-time job at
SUNY
Albany gives Mr. Chartock another generous salary and benefits
package tied to his position there as a full professor with tenure and
seniority. His combined salaries allow this particular New York State employee
a take home pay greater than Gov. George E. Pataki.)
[See: 'UAlbany
fails to enforce SUNY policy against Chartock for full-time 'moonlighting']
Debera Saglimbeni,
senior development associate. Her raise of
$60,104
(you read that correctly) equals a pay increase of 46.4%.
Her total compensation package is $189,713 (you read
that correctly, too). ["For some unknown reason," says one WAMC,
Inc. insider, Ms. Saglimbeni "has a monopoly or sweetheart deal or
something going on so that any big-buck underwriting that comes into
WAMC
is automatically handed over to her'' The insider goes on to say
"and I don't understand why. Something's going on there."
David
Galletly, assistant executive director. His raise of $11,793
equals a pay increase of 12%. His total
compensation package is $109,823.
Selma
Kaplan, assistant executive director. Her raise of $6,524
equals a pay increase of 9.1%. Her total
compensation package is $78,320.
Josie
Slavinski, development coordinator. Her raise of $7,243
equals a pay increase of 9.9%. Her total
compensation package is $80,432.
Dona
Frank, director of underwriting. Her raise of $10,385
equals a pay increase of 16%. Her total
compensation package is $75,286.
©2002 WAMC Northeast Pirate Network®/™
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