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September 05, 2008

United Way Board Chairman Resigns Amid Investigation of Former CEO's Pay

Graham Denton, the chairman of the board of the United Way in Charlotte, N.C., has stepped down after a local news investigation revealed a $2-million retirement package paid to the charity’s former chief executive, Gloria Pace King, reports WCNC.

Mr. Denton was a member of the executive committee that approved Ms. King’s multimillion-dollar retirement package. Since a board meeting last week, at least three United Way board members have resigned, including Anne Caulkins, publisher of The Charlotte Observer. Carlos Evans, Wachovia’s Executive Vice President, will take over as chairman.

A story in The Charlotte Observer reported earlier this week that local United Way board members are concerned that the retirement package they approved for Ms. King might be a violation of Internal Revenue Service rules that regulate compensation for charity leaders.

Friday September 5, 2008 | Permalink

Comments

1. Here we go again! These major national organizations and their boards must hold themselves to a higher standard or risk further loss of support. For goodness sakes, hire a GOOD nonprofit attorney, consultant, and chief development officer.

   — Dr. Steve W. Batson, CFRE    Sep 5, 02:19 PM    #

2. United Way of Central Carolinas is not a major national organization. It is a local organization serving the areas surrounding Charlotte NC. The board is local. The staff is local. The programs are local. They are incorporated in the State of North Carolina. They are a local organization. The United Way system is not like major national organizations with a top down structure governing local “chapters.” United Ways are separately chartered, incorporated, and governed. That is an important distinction. That said, I totally agree that all nonprofits should have the best advice they can possibly afford.

   — Traci Wickett    Sep 5, 03:20 PM    #

3. THIS STILL STINKS, UNITED WAY CEO OF CENTRAL CAROLINA

   Posted on August 27, 2008 on CFCTreasures.wordpress.
   com. Filed under: Fundraising, Leadership, Non-profits |
   THIS STILL STINKS, WHEN DID THE UNITED WAY NON-PROFIT BOARD BECOME A GUARANTEED JOB PLACEMENT SERVICE!

   This still stinks, why doesn’t the United Way ever learn how to properly fire someone?

   I couldn’t believe this when I read it, so here’s the article so you can see for yourself:

   United Way CEO ousted
   August 26th, 2008 by Karen Shugart in News

   Ousted United Way of Central Carolinas CEO Gloria Pace King will continue to receive her $290,000 annual salary for two-and-one-third years unless the agency can find her private sector unemployment.
   The agency’s executive board voted unanimously this morning to ask chief executive officer Gloria Pace King for her resignation. Thirty-seven of 63 board members were at the morning meeting. She has until Sept. 30 to resign or be fired.
   Board chairman Graham Denton at a noon news conference acknowledged King’s compensation — about $1.2 million in salary, bonus and benefits last year — was “out of step” with community expectations.
   “It was a culmination of breakdowns at a number of different levels,” Denton said.
   Denton said he was not aware of any large local employers threatening to withdraw from the annual workplace giving campaign unless the board took action.
   Lord knows how this will shake out. The agency’s annual giving campaign is just gearing up. Clearly the forced resignation is meant to mollify pissed-off donors, but how can you do that if you’re still paying King a six-figure salary? Most United Way donors would be thrilled to get paid that kind of dough to leave their jobs

   FROM CFC Treasures:

   Questions for the Board:

   Since when is a board required to be a guaranteed job placement organization for a fired CEO?

   Re-read the sentence, “King will continue to receive her $290,000 annual salary for two and 1/3 years unless the agency can find her private sector unemployment.” I presume they meant “employment” but the main point is so what is her incentive to look for a job? SHE WILL GET MORE THAN ONE HALF A MILLION DOLLARS BY DOING NOTHING. $290,000 TIMES 2.3 EQUALS $667,000!

   UNITED WAY STRIKES AGAIN.

   Bill Huddleston
   www.cfcfundraising.com

   — Bill Huddleston    Sep 7, 08:59 AM    #

4. The real victims will be the people United Way was advertising to help. Who can believe in a organization that pay out the money that are given to help people supporting only high salaries. It’s the same old story, give from the poor, to make people rich. These people should be put in jail. Shame on you!

   — Brenda Morgan-Goble    Sep 13, 09:28 AM    #

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