Executive Compensation

The Post questioned the compensation arrangements for President and Chief Executive Officer Steve McCormick. Although his compensation is comparable to that for CEOs of other large charities, this became an issue because we made a mistake in reporting the details of a home loan that was offered to Mr. McCormick as part of a compensation package when he was recruited to lead our organization. We made mistakes in reporting accurate information regarding Mr. McCormick’s salary to the Post. There was never any intent to mislead the Post, and we regret the error.

Mr. McCormick's compensation is set by the Board of Directors and is in proportion to that of executives of similar-sized nonprofits.

The total amount of Mr. McCormick’s compensation for fiscal year 2004 (July 2003 through June 2004) will be $360,000, plus standard Conservancy fringe benefits. This amount reflects a voluntary 5 percent cut that he and the rest of the Executive Leadership Team took in light of the current economic situation.

As part of a negotiated compensation package to encourage him to move from California to Virginia, the Conservancy provided a home loan for $1.55 million with a 1-year adjustable interest rate starting at 4.59 percent. (The rate of the loan was based on outside advice as to what a market rate would be) He has since refinanced the Conservancy loan with a commercial lender and repaid the Conservancy’s loan in full.

Mr. McCormick's total compensation for each year is listed on The Nature Conservancy’s IRS Form 990, a form all nonprofits are required to file with the IRS. The Nature Conservancy’s IRS 990 Form is available online.

President's Discretionary Fund

The President's Discretionary Fund (PDF) was created in the early 1990s by former Conservancy President and CEO, John C. Sawhill, who saw a need for a special fund to address important organizational needs. Funding for the PDF came primarily from undesignated bequests and other unexpected, unrestricted contributions.

Allocation of these funds was decided by the President after conferring with members of the Board of Directors and assessment and discussion by senior management of high-priority conservation needs. Projects that received funds through the PDF include NatureServe (the former Natural Heritage programs), other science programs, the Conservancy’s endowment, international programs, our Fundraising Management System software and a public education campaign.

Steve McCormick abolished the PDF in fiscal year 2002 and replaced it with a much smaller “Quick Strike Fund.” That fund received an initial budgeted allocation of $3.5 million. Due to a decrease in revenues, it will likely disburse approximately $1 million to organizational priorities this coming year.