10 Philly Nonprofit Leaders Who Would Lose Big Under GOP Tax Plan

Under the Tax Cuts and Jobs Act, employees of nonprofits whose annual pay exceeds $1 million would have their earnings subject to a 20 percent tax.


L: Stephen Klasko | R: Amy Gutmann via UPenn.edu

Republican lawmakers unveiled their anticipated tax-reform plan last Thursday.

Among the winners in the bill: the mega-wealthy and big corporations.

Among the losers? Nonprofits – or, more specifically, highly paid employees of nonprofits. The legislation includes a 20 percent tax on annual pay above $1 million for a nonprofit’s five highest-paid employees.

To give you an idea of how that would affect some big names in the Philly nonprofit world, we looked at some of the top-paid leaders of the area’s largest nonprofits, their paychecks in 2015, and what a 20 percent cut would look like according to that figure.

  1. Thomas Spray, chief of cardiothoracic surgery at the Children’s Hospital of Philadelphia
    Pay: $8.3 million
    Potential cut: $1.46 million
  2. Amy Gutmann, president of the University of Pennsylvania
    Pay: $3.5 million
    Potential cut: $500,000
  3. Barry Freedman, president and CEO of Albert Einstein Healthcare Network
    Pay: $2 million
    Potential cut: $200,000
  4. Larry Kaiser, president and CEO of Temple University Health System
    Pay: $1.8 million
    Potential cut: $160,000
  5. Stephen Klasko, president and CEO of Thomas Jefferson University Hospital
    Pay: $1.7 million (as a trustee in 2015)
    Potential cut: $140,000
  6. Madeline Bell, CEO of the Children’s Hospital of Philadelphia
    Pay: $1.4 million (as the organization’s chief operating officer in 2015)
    Potential cut: $80,000
  7. Francis Dunphy, head coach for men’s basketball at Temple University
    Pay: $1.3 million
    Potential cut: $60,000
  8. John A. Fry, president of Drexel University
    Pay: $1.3 million
    Potential cut: $60,000
  9. Philip Martelli, head basketball coach at St. Joseph’s University
    Pay: $1.2 million
    Potential cut: $40,000
  10. Rebecca W. Rimel, president and CEO of Pew Charitable Trust
    Pay: $1.1 million
    Potential cut: $20,000

The figures in this article have been updated to reflect a 20 percent tax on the sum of an employee’s income in excess of $1 million as opposed to the total sum of an employee’s income.