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Kamehameha Hamilton McCubbin, chief executive officer of Kamehameha Schools, will receive a $50,000 pay raise this year that will increase his annual compensation to $350,000.
CEO gets $50,000
pay raise
Heads of similarly sized
nonprofits have comparable
salaries, says a trust spokesmanBy Rick Daysog
Star-BulletinIn a 40-page report filed with the state probate court yesterday, the $6 billion charitable trust said McCubbin will receive $350,000 in each of the next two years.
The salary is in addition to housing expenses, a leased car, moving costs, membership in a luncheon club and other benefits that McCubbin will receive from the trust.
McCubbin's annual compensation is well below the $800,000 to $1 million in annual commissions that the estate paid each of its former trustees during the recently concluded four-year controversy.
It's also comparable to that paid to the heads of similarly sized nonprofits and small private universities on the mainland, according to a trust spokesman, Kekoa Paulsen.
In its court filing, the estate said McCubbin's compensation was set by the estate's former interim board of trustees with the help of an outside consulting firm, Strategic Compensation Associates.
The trust said SCA examined the pay of many heads of large foundations, charities, small private colleges and large independent private schools to provide benchmarks for McCubbin's pay.
McCubbin's compensation was disclosed in a report detailing many of the major reforms implemented by the trust as a result of last year's closing agreement with the Internal Revenue Service.
The IRS, after an exhaustive audit of the 116-year-old estate and its taxable subsidiaries, threatened to revoke the estate's tax-exempt status before it entered into an agreement in which the Kamehameha Schools paid about $13 million in back taxes and interest, established a new CEO-based form of management and implemented new spending and investment policies.
In its report yesterday, the estate said it has complied with terms of the IRS closing agreement.
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