December 4, 2009
Kim Gittleson is a research assistant working with Ken Hirsh, a GothamSchools community writer and financial contributor.
The IRS recently posted the Form 990 filings for the 2007-2008 school year. This form is the required federal filing for tax-exempt organizations, which include charter schools, and contains data about fundraising, spending, and leadership compensation.
Since Form 990 filings are often difficult to find, I have compiled a database of the forms for 64 out of the 80 charter schools that were open in 2008. Of the 16 schools without Form 990s on record, fourteen are schools that opened in the fall of 2008 (and thus didn’t have a 2007-2008 report). One school, East New York Preparatory Charter School, was open during the 2007-2008 school year but had no form available as of this writing. You can view a spreadsheet of the schools, their grades, the years in which they opened, and whether or not they filed a Form 990 here. The full database of all of the Form 990s is located here.
Because these filings are often lengthy and complicated, I have attempted to analyze some of the information. In this analysis, I examined the compensation data available in the 990s to better understand compensation as compared to traditional public schools. To see the results of my survey, you can download the spreadsheet here.
Some key findings:
- The average salary of the top earner at a charter school or CMO is $169,772. The median is $145,000. If you factor in other costs, like pensions and expense accounts, the average is $186,828 and the median is $158,928. For reference, the average superintendent salary (including regional and community superintendents) is $177,785, according to data provided by SeeThroughNY.
- The highest salary for a charter school leader or CMO executive is $494,269 ($515,258 with pension and expense accounts). The lowest salary is $86,057 (there were no listed pension or expense accounts for this person).
- The amount of executive compensation varied significantly from school to school, with some charter schools paying their top 5 earners over $90,000 and others with only one person listed above $80,000.
- The average salary for a charter school principal is $120,454. The median is $124,000. The average salary for a DOE principal is $133,680 and the median is $133,490, according to data provided by SeeThroughNY. (Note: I did not include pension data because this was only available for charter school principals and not available for traditional DOE principals.)
Non-profit charter schools are required to list the top five earners at their school as well as the number of employees that make over $50,000 in their 990 filing. However, charter schools are sometimes controlled by larger Charter Management Organizations (CMOs) that are responsible for the management and backroom support of several charter schools in New York City and elsewhere. (Uncommon Schools, Inc. and Achievement First, Inc. are two examples of such CMOs.) These CMOs are often the source of the compensation data for the executive directors of schools and networks of schools.
Additionally, charter schools often set up related charitable organizations, usually known as “Friends of X School,” through which employees at the school are compensated in addition to the salary listed on the school’s 990 filing. Thus, in order to get as comprehensive a sense as possible of total compensation both within an individual school as well as its larger CMO, I looked at the “Related Organizations” line on the 990 and then found the tax filing for the organizations listed. (A full database of these filings is available here.) This data, combined with the original 990 database, is what I used to determine the top earner at each charter school as well as the top earner in each charter school network. (If a charter school was not run by a separate CMO, I simply used the data listed on the 990 for the school itself.)
I have listed the school’s name, the salary of the top earner as well as the salary including pension and expense accounts, the title of the top earner, and whether or not this top earner was an employee of a related organization. I have chosen not to include names, although all of this information is available on the 990 filings. In addition to this data, I also looked at the top five earners in each specific charter school to get a sense of how pay was distributed across the individual schools. Included in this analysis are the job titles of the top earners, listed in order from highest paid to lowest. Finally, I compared principal compensation at charter schools versus traditional public schools (these are the last two pages of the spreadsheet). Inconsistencies, either in reporting from a particular school or in my methodology, are noted in the document.
If you have any questions about my approach or any helpful criticism, post it in the comments section below. Questions are welcome!