Providing a window into compensation at the highest levels of nonprofit senior services organizations, including senior housing companies, the Philadelphia Inquirer recently compiled data on CEO pay in that region of Pennsylvania.
Among the 62 organizations considered, average compensation for top executives was $271,428 a year. Of that, they received an average of $220,113 in salary.
The highest-paid executive on the list—NewCourtland Senior Services Inc. President and CEO Gail Kass—took home $1.04 million in salary in 2013, the most recent year data was available, according to the Inquirer.
NewCourtland runs one nursing home but mainly focuses on community-based services and affordable housing for seniors. This makes Kass an “anomaly” among the executives on the list, wrote Inquirer Staff Writer Harold Brubaker. Most of her peers are in charge of operations with multiple services, including housing and medical care, he reported.
Among those peers are several leading names in senior housing.
Marvin Mashner, CEO of ACTS Retirement-Life Communities Inc., earned total compensation of $683,727 in 2013. That put him in third place on the rankings. He was followed by Kendal Corp. CEO John Diffey, at $668,443.
ACTS and Kendal Corp. both have more assets and higher revenue than NewCourtland. While NewCourtland brought in $55 million in revenue in 2013, ACTS brought in $379 million and Kendal Corp. brought in $236 million.
ACTS is in the midst of revamping the 23 continuing care retirement communities it owns and operates on the East Coast. Typically, it allocates $55 million—the same amount as NewCourtland’s total 2013 revenue—for facility upgrades each year. The current repositioning project involves a $300 million, three-year investment.
Kendal Corp. offers independent living, assisted living, memory support, skilled nursing and rehabilitation care, with 13 locations along the East Coast, as well as Ohio and Illinois.
NewCourtland Board Chairman Elizabeth H. Gemmill defended Kass’ high pay in an email to the Inquirer.
“Gail is a transformational leader with a vision whose compensation is commensurate with her accomplishments, duties, and responsibilities,” Gemmill e-mailed the newspaper. “Her unwavering commitment and success in improving the lives of our seniors goes way beyond the role of a traditional CEO.”
Kass’ compensation puts her on par with CEOs of health system leaders in the Philadelphia area, the Inquirer noted. She ranks sixth on that list.
Written by Tim Mullaney