How rich is Craig Masback?

I can speak to the life as a typical nonprofit executive. I run a sports nonprofit organization whose revenues are just under $1M. The one common demoninator for salary comparisons is gross revenues. For nonprofit 501 (C)-3s, the highest reported CEO salary is close to $400K. The mean salary of nonprofit CEOs/Executive Directors is approx. $85K, as reported by The Nonprofit Times (www.nptimes.com). One point of distinction, a not-for-profit is NOT a nonprofit, kind of like a wolf in sheep's clothing. The salary scandal at the NYSE was a big deal because the NYSE is a not-for-profit. These organizations are not required to use excess revenues to fulfill their public service goals or purpose. Numerous nonprofit salary surveys are conducted every year by organizations such as the Chronicle of Philanthropy and the Nonprofit Times. In addition, mainstream press and our "friends" at the IRS have jumped into the fray since the number of nonprofits in the U.S. has skyrocketed. The following link (no registration is required) is a Wall Street Journal article from this past summer that comments on scrutiny of executive compensation in the nonprofit world:

http://www.careerjournal.com/salaryhiring/industries/nonprofits/20040601-lublin.html

Basically, Craig's salary should be comparable to similar organizations. Other NGBs are closer in line than the professional sports CEOs like Paul Taglibue and David Stern. Most nonprofits are governed by a Board of Directors. IN the case of USAT&F, it appears that their Board is elected from the bottom up. Most nonprofits' Boards are self-regulated; i.e., their Boards recruit themselves. In my case, we have some Board members who came from the ranks of our membership. We also have recruited business leaders to beef up our Board with check writers or nationally known leaders or both.

Craig stepped into a quagmire 7+ years ago. He may ultimately be receiving a higher than "acceptable" compensation in 2004/2005. It is his Board of Directors who are liable in the eyes of the State Attorney General and the IRS. I certainly hope that those unpaid volunteer leaders know that this subject is their liability.

Nonprofit Exec -

You are exactly right about where the fiduciary responsibilty lies. Unfortunatley, the USATF board has members who are pretty much clueless about this issue. Either that or they could care less.

Making matters worse, most postions in USATF are filled via uncontested elections and the office holders tend to be recycled folks who have been around forever. The slow process of inbreeding, organizational incest, and stagnation tends to breed poor management/decision making skills. Most USATF offices are token positions and the holders are not motivated/capable of really digging into complex issues.

I've seen non-profit management & Boards up close and personal, and I think that the IRS would have a field day if they ever really looked closely at the books/practices of many of these organizations.

ZZrunZZ - It's easy to criticize Masback, but I think you have to remember what a terrible state USATF was in when he took over.

Also, if you don't want Masback there, whom would you replace him with? There's not many people out there with the skills and track-specific knowledge to fill the position.

Cardinal Fan wrote:

ZZrunZZ - It's easy to criticize Masback, but I think you have to remember what a terrible state USATF was in when he took over.

Cardinal Fan, YOU have forgotten it was Craig Masback who was TWICE warned that the USATF would be decertified by the USOC because of his continual neglect.

Masback, the son of a philandering father and an alcoholic mother, manages as if he were both.

1. What happened between 1998-1999 that saw some management (Pilgrim, Elias) get 100% raises? What happened that others got raises in the $25,000-$50,000 range?

2. Why do they need to pay an outside council if they have two lawyers on staff? At the rate of compensation of Masback and Pilgrim in 2003 ($576,000+), why did they need to spend another $159,000 on outside legal help?

3. What can an ordinary, dues paying USATF member do about this if they are upset?

Answers:

1. It is not uncommom for corporations or non-profits to lure talent by promising larger compensation packages down the road. This is speculation but Masback may lured Pilgrim and Elias to work for USATF at a below market salary (during the deficit period) with the promise of a larger salary once the financial crisis was solved. Many private entities needing a turnaround hire CEO's in the same fashion.

2. Organizations need to keep independent outside counsel on retainer. Inside legal staff are officers of the organization and handle day-to-day legal issues. Outside counsel acts as an independent source of legal advice and is called on to represent the organization when internal staff cannot act due to ethics and conflicts of interest. Again, a very common business practice.

3. USATF members are essentially shareholders. At the very least, voice your opinions and concerns should you see fit directly to USATF headquarters or your local association officers. I also previously advocated getting directly involved in USATF business. So many positions withing USATF are filled by uncontested candidates. Go to the convention or attain an association post. That is the best course for change.

Maybe one should ask how did Masback get his job and who(m) determines his salary!!!

I would like to know ALL the sponsorship money that HE states he brought into the sport (USATF).

I think we have LOST sponsorship over the past few years!!!

I know we have LESS indoor meets than we had 10-15 years ago.

Keep it going

Any guess what they'll pay Estes to stare at his blackberry all day?

still running wrote:

I know we have LESS indoor meets than we had 10-15 years ago.

The demand (paying specators) is not as high as it used to be, athletes ahve to be paid to compete higher fees than in the past, and facility costs are through the roof. This is not Masback's fault.

Probably in the 75,000+ per year range, but then again looking at the figures that have been posted here earlier then nothing would surprise me.

And another thing, didn't the USATF convention/elections take place over a month ago? If so, why haven't the committee/division/etc contacts been updated on the USATF web site yet????? WTF takes so long????? Typical BS.

Bet Ya wrote:

And another thing, didn't the USATF convention/elections take place over a month ago? If so, why haven't the committee/division/etc contacts been updated on the USATF web site yet????? WTF takes so long????? Typical BS.

It's Jill Geer's responsibility. She's only paid $89k to type a few pages of drivel once a week; what do you expect, actual performance or something?

I would think that Craig, USATF performance, administrators, athletes, et al would be fair game on this site, but bringing family in is truly a low blow and below the standards of even letsrun.

still running -

You might want to ask the USATF compensation committee.

Compensation Committee:

Chair: Bill Roe - 360-734-8892

Bob Hersh - 516-484-1793

Patricia Rico - 914-271-4252

Allan Steinfeld - 212-423-2233

National Office Liaison: Jim Elias - 317-261-0478 x313

Board Liaison: Bill Roe - 360-734-8892

Good Luck trying to get an answer. I'd hardly call this an objective and independent group of folks.

Many employees of non-profits make a hell of a lot more than Masback - University Presidents, football/basketball coaches, top physicians at teaching hospitals and almost everyone managing Harvard's endowment. The NFL is a non-profit too. Not the teams, although Green Bay might be, but the league itself is a non-profit under 501(c)(6). Also compensation for non-profit employees can be set in comparison to FOR profit companies - thus the top traders managing Harvard's endowment make 8 figures a year and are paid like the best on Wall Street, which they easily could be. Of course, these people are held accountable for their results, which to many on this board, Masback is not. The budgets of the NYRR and USATF seem to be pretty similar now that NYRR has ING as a title sponsor of the marathon. Anyone know what their employees make?

Bet Ya wrote:

And another thing, didn't the USATF convention/elections take place over a month ago? If so, why haven't the committee/division/etc contacts been updated on the USATF web site yet????? WTF takes so long????? Typical BS.

Looks like updates have been made to thier directory....

The new Secretary (Lynn Cannon) is showing up as the Secretary at

The new Youthh Chair (Linda Phelps) is showing up at

ray wrote:

I would think that Craig, USATF performance, administrators, athletes, et al would be fair game on this site, but bringing family in is truly a low blow and below the standards of even letsrun.

Totally agree with you on this one

juggler-

This info was posted in another thread not long ago:

http://www.letsrun.com/forum/flat_read.php?board=1&id=679392&thread=679343

New York Road Runners - 2003:

Allan Steinfeld President $207,800

Mary Wittenberg Exec VP $184,500

Ann Crandal Hinegardner VP Marketing $225,941

Alice Schneider VP for IT $120,688

Robert Laufer VP for Legal $116,124

George LaSala VP for Events $111,739

Susan Cuttler VP for Creative & Communications $110,481

Bernard Cooper Chairperson $19,500

Andrew Kimerling Treasurer $7,200

Gary Meltzer Secretary $7,200

Scott Lange Marketing Marketing Services $68,275

Douglas Feltman Financial Services $128,275

Young Executive Spirit Inc. Marketing Services $142,429

Kaeser & Wilson Designs Ltd. Design Services $152,376

Looks like Masback made double the compensation of Steinfeld in 2003.

Juggler -

There is are some significant differences between a 501(c)(6) and 501(c)(3) organization. The details of which are highly boring and dry. However....to compare the NFL with USATF is laughable. The NFL acts as a trade association for 32 highly commercial/profit driven franchises. The NFL had revenue of about $6 billion this year. Those two facts alone put the NFL in a totally difference galaxy than the USATF. If you really want to look at the true NFL then you need to talk about NFL Ventures, LP. This is the entity that generate all the cash for the NFL and this entity is not tax exempt.