University Times

Head men’s basketball coach James P. Dixon II topped the list of Pitt’s five highest-paid, non-officer employees in calendar year 2008. This was Dixon’s third year as Pitt’s top wage earner.

According to Pitt’s federally required financial filings released this month, Dixon earned $1,389,951 in total compensation, which is defined as the sum of the following categories: base compensation ($629,792); bonus and incentive compensation, which for coaches includes media programming revenue and contractual performance incentives ($603,000); other reportable compensation ($17,040); deferred compensation, such as the University contributions to pension  plans ($127,603), and nontaxable benefits ($12,516).

Rounding out the top five were:

• David R. Wannstedt, head football coach, who earned $1,010,873 in total compensation — that figure is the sum of $495,440 in base pay; $450,000 in bonus/incentive compensation; $23,661 in other reportable compensation; $30,259 in deferred compensation, and $11,513 in nontaxable benefits.

• Ronald B. Herberman, professor of medicine and associate vice chancellor for cancer research, Health Sciences, who earned $670,614 in total compensation — $587,239 base pay; $600 in other reportable compensation; $71,020 in deferred compensation, and $11,755 in nontaxable benefits.

• Steven C. Pederson, director of Athletics, who got $473,232 in total compensation — $434,177 in base pay; $8,211 in other reportable compensation; $18,400 in deferred compensation, and $12,444 in nontaxable benefits.

• Donald S. Burke, associate vice chancellor for global health and dean of the Graduate School of Public Health, who received $448,421 in total compensation — $417,908 in base pay; $600 in other reportable compensation; $18,400 in deferred compensation, and $11,513 in nontaxable benefits.

Compensation figures for those five employees appear on Internal Revenue Service forms filed last week by Pitt. IRS form 990 requires tax-exempt, private corporations to report by May 15 annually compensation figures for their five top-earning, non-officer employees, as well as for senior administrators and trustees paid by the institution.

(For information on UPMC, which also is required to file the federal 990 form, see related story in this issue.)

The IRS categories comprising total compensation on this year’s 990 form are revised slightly from previous years’ reporting categories, according to Arthur G. Ramicone, vice chancellor for Budget and controller. In previous years, the reporting categories were compensation; employer contributions to benefits plans (which included any deferred compensation where applicable), and expense accounts/other allowances, Ramicone explained.

In addition, in order to standardize reporting among institutions, the IRS now instructs not-for-profits to report base compensation as identical to what is reported in box 5 (Medicare-eligible wages) on the employee’s tax year 2008 W-2 form, which in this year’s 990 reporting shifts some of the base compensation to the nontaxable benefits category, he noted. Thus, while the general financial information on form 990 is based on the fiscal year that ended June 30, 2009, under new IRS requirements, the associated compensation figures are reported for calendar year 2008.

Pitt’s IRS form 990 also includes required financial information on the chancellor and six other senior administrators. Senior officers did not receive a base pay hike in FY09 under the employee salary freeze put in place by the chancellor and trustees in January 2008.

Under a five-year deferred retention incentive plan launched by Pitt trustees in 2002 and converted to an annual retention incentive plan by the trustees in FY08, four of the officers received additional pay for remaining in their positions through June 30 each year. This year, that compensation and the interest earned on it are reported in the  bonus/incentive compensation category for each recipient.

In 2008, Chancellor Mark A. Nordenberg earned $698,750 in total compensation — $456,546 in base compensation; $81,938 in bonus/incentive compensation; $29,546 in other reportable compensation; $65,045 in deferred compensation, and $65,675 in nontaxable benefits (which this year for the first time includes a $54,000 ascribed rent value of the University-owned chancellor’s residence).

Arthur S. Levine, senior vice chancellor for Health Sciences and dean of the School of Medicine, earned $797,790 in total compensation — $698,788 in base pay; $59,969 in other reportable compensation; $27,600 in deferred compensation, and $11,433 in nontaxable benefits.

Jerome Cochran, executive vice chancellor, earned $533,937 in total compensation — $385,126 in base pay; $54,625 in bonus/incentive compensation; $18,902 in other reportable compensation; $64,189 in deferred compensation, and $11,095 in nontaxable benefits.

James V. Maher, senior vice chancellor and provost, earned $438,984 in total compensation — $345,294 in base pay; $54,625 in bonus/incentive compensation; $28,138 in other reportable compensation, and $10,927 in nontaxable benefits.

Amy K. Marsh, treasurer and chief investment officer, earned $362,712 in total compensation — $314,546 in base pay; $7,991 in other reportable compensation; $27,604 in deferred compensation, and $12,571 in nontaxable benefits.

Ramicone earned $396,649 in total compensation — $261,154 in base pay; $54,625 bonus/incentive compensation; $22,447 in other reportable compensation; $46,356 in deferred compensation, and $12,067 in nontaxable benefits.

B. Jean Ferketish, secretary to the Board of Trustees and assistant chancellor, earned $234,548 in total compensation — $185,014 in base pay; $9,915 in other reportable compensation; $27,552 in deferred compensation, and $12,067 in nontaxable benefits.

Pitt’s trustees are not compensated for their service on the board. Former board member Cynthia Ross’s compensation figures are reported on Pitt’s 990 form for her service as an Institutional Advancement employee.

In 2008, then-trustee Ross earned $168,969 in total compensation — $158,747 in base pay; $600 in other reportable compensation; $4,847 in deferred compensation, and $4,775 in nontaxable benefits.

Also new this year, institutions are required to disclose financial information on those employees (defined as “interested persons” by the IRS) who are related to senior officers or trustees.

Six such employees received compensation from the University in 2008. They were:

• Joshua Cochran of Public Safety, who earned $56,109;

• Lindsay Cochran of Property Management, who earned $18,359.

Both Cochrans are family members of Executive Vice Chancellor Jerome Cochran.

• Erin Nordenberg of the Clinical and Translational Science Institute, who earned $50,612;

• Michael Nordenberg of Human Resources, who earned $24,807.

Both Nordenbergs are family members of the chancellor.

• Mary Jean A. Lovett of Alumni Relations, who earned $34,911; Lovett is a family member of trustee Robert G. Lovett.

• Anita P. Courcoulas of the Department of Surgery, who earned $212,707. Courcoulas is a family member of trustee Ira J. Gumberg.

According to IRS form 990, Pitt paid 1,441 employees more than $100,000 each in 2008.

Pitt also is required by the IRS to file compensation figures for the five highest-paid independent contracting firms that received compensation from the University during fiscal year 2009.

(Previously, the IRS required two lists of five contractors each: one of firms that provided professional services, and a second list of firms that provided other services.

The IRS now has combined these lists, Ramicone explained.)

Pitt contracted with the following five highest-paid firms:

• Massaro Corp., Pittsburgh, construction services — $32,975,635.

• Sodexo, Atlanta, food services — $24,068,145.

• Turner Construction, Mon-roe Township, N.J., construction services — $20,564,696.

• McKamish, Pittsburgh, HVAC contractor — $9,294,778.

• Mascaro Construction Co., Pittsburgh, construction services — $9,008,909.

Pitt also paid 659 other unspecified independent contractors more than $100,000 each for services, according to information provided to the IRS.

The University’s full IRS form 990 is expected to be posted on the Office of Budget and Controller’s web site by the end of the month, Ramicone said.

—Peter Hart