In a comment about my post regarding executive pay at Mission Hospitals, loyal reader Jenny mentioned that I look at pay at the Asheville Area Chamber of Commerce.
From a quick reading of the chamber’s 2008 publicly available tax documents, I glean that the chamber lists total revenues of just under $4 million, and that it pays chamber President Rick Lutovsky $200,620 in salary, plus $27,313 in contributions to an employee benefit plan and deferred compensation, plus $12,750 for an expense account.
That adds up to one sweet total of $240,683 for the head of the local chamber of commerce. That’s just under a quarter of a million dollars for Lutovsky.
Other salaries and wages for employees at the chamber come to $1,881,049.
In other interesting reading:
-The chamber spends $22,960 for its Chamber Classic Golf Tournament and has gross revenues of $70,544 for the event, which nets the chamber $47,584 in revenue.
-The chamber spends nearly $56,000 for its annual meeting event, which brings in $71,744 in revenue, for a net of $15,799.
Click here to read the 990 form the Asheville Area Chamber of Commerce files with the IRS.
14 Comments
I agree with The Phan, why should a non-profit organization have to justify what it pays its CEO. It is not a local or federal government that is obligated to the people. It just goes to show that a lot of people in Asheville are socialists and think that everyone should be compensated equally, whether they deserve it or not. America was founded on the theory of meritocracy, and if you don’t know what this means then shame on you. If the Chamber believes that Rick Lutovsky is worth his salary and provides the Chamber with equal or greater value then so be it.
The notion that someone (i.e. "rayburn") can determine how many employees are "people of color" by looking at a bunch of photos on a website (some of which aren’t even present) is absurd.
And again, I challenge some of you to tell us–just exactly how much should the CEO of the chamber of commerce earn? Please enlighten us. Then I’d like to tell you how much I think YOU should be earning.
It seems counter intuitive that an organization of for-profit businesses is allowed to be form a non-profit organization like this, which is in essence a charity not subject to taxes. Surely, there is a more efficient way to help promote downtown business, while leaving more money available to reinvest in these business and contribute to area charities.
In addition to what is reported on the 990 for his salary and retirement plan, it might be important to investigate any additional CEO "perk" package. It all adds up!
I went to the Chamber’s web site and counted 42 total employees. Only 2 are persons of color.
http://www.ashevillechamber.org/chamber/contact.asp
I see CEO Lutovsky very frequently during the business day running along Kimberly Ave. His cushy CEO job at the Chamber allows him to spend much of the working day exercising. I guess he spends the rest of the time cutting ribbons and acting important.
I looked at the Chamber’s web site and they have a very large staff. I’m sure they are not the most efficient organization in town, and certainly not the most diverse either! Few people of color seem to work at the Chamber.
And you are right about that huge new office building in Montford. Lutovsky obviously has champagne taste as his salary shows it.
Any way you look at this one, that is a s**t-pot full of $$$ for a guy who takes two-hours in the middle of every day to run/work-out at the YMCA and attends/poses for photos at one suck-up ribbon cutting after another. Nice work, if you can get it!
Please post some more local exec compensations! That would be fascinating to compare.
thank you for doing some investigative journalism… I imagine with their advertisers there’s no chance the ACT will pick up this story.
Ash,
how many employees does the chamber have?
$1,881,049 divided by, number of employees, equal? compared to the average wage in Buncombe County?
Jenny said:
"The Chamber has always spent money very freely and has many expensive staffers, especially in govt relations and economic development. Aren’t these areas already well-covered by both City of Asheville and Buncombe County govts?"
Jenny, very good point!
Chamber President Rick Lutovsky makes a $100,000 more than the city’s planning and development director.
This is absurd. The free market dictates how much it costs to hire a chamber CEO for an organization the size of Asheville’s (with one of the larger membership bases for an area this size in the country). If you think this is too much money for the CEO to earn, how much should he earn? And who exactly should determine that? The government?
Jeremy, I think I confused you – they’re both the same, but listed on the document in different line-items.
I cut the confusing line in the blog post. Thanks!
Something doesn’t add up. Your post says that Lutovsky’s total package adds up to $240,683, then the next paragraph states that total compensation of current officers, directors and key employees (including Lutovsky) is listed as $240,683.
This has been at least a five year long conversation among businesses downtown. A lot of the business owners will tell you that not only do they think that a non-profit with a CEO salary of that rate is ludicrous, the Chamber also does not accurately represent many of the central business district’s needs. All of the businesses that I have worked for have jumped off the Chamber bandwagon and quit their memberships either in disappointment or disgust.
Thanks for digging up this information. You are doing a great public service by revealing this.
The Chamber has always spent money very freely and has many expensive staffers, especially in govt relations and economic development. Aren’t these areas already well-covered by both City of Asheville and Buncombe County govts?
The Chamber’s events are usually not that beneficial as evidenced by the net revenue generated. Gosh, do they know how to spend other people’s (members) money.
On top it all, the Chamber has a hugely expensive new headquarters building on Montford Ave. that is far too large and grand for its purpose.
Great job looking into this organization!