San Francisco Examiner - June 19, 2002
Michael Stoll, Of The Examiner Staff
Pat Christen, executive director, is taking a 12 percent pay cut. She has attracted attention for years in the nonprofit community for the size of her salary, which rose to $207,032 last year.
Other senior managers will get a 10 percent salary cut and remaining employees' salaries will be frozen.
Twenty-eight of the organization's more than 100 workers will lose their jobs by the end of this month, although some will stay on during the restructuring through the end of the year.
The foundation said its income this year fell $2.5 million short of its $20.7 million budget.
Management blames the downturn in the economy and the "post-9/11 environment" for its falling revenues, but stressed that the fund-raising shortfalls were temporary.The foundation severed its relationship this year with Pallotta TeamWorks, which ran the California AIDS Ride, and started its own event, AIDS LifeCycle. The foundation expects the bicycle tour to do better next year.
Christen said in a terse press release that the foundation hopes to preserve "core client services," such as advocacy, benefits counseling, needle exchange and treatment education, and that no clients will lose their housing vouchers.
Last week, after The Examiner published a cover story on Christen's salary increase last year, a spokesman for the organization, Gustavo Suarez, said massive cuts were planned, but refused share the details.
dSuarez did not return repeated calls to his office on Tuesday. A source within the organization said much of the day was taken up by meetings with the staff. Other AIDS organizations this month announced layoffs and salary cuts citing the same reasons. They included Project Open Hand, which provides free meals and groceries to people with AIDS, and the UCSF AIDS Health Project.
The salaries of Christen and her top five managers, including a benefits package worth $14,256, totaled just over $1 million. The foundation received harsh criticism from activists and the Bay Area Reporter, a gay newspaper. Other activists and nonprofit managers said the foundation was the most responsible AIDS organization in The City and that Christen deserved the money.
E-mail: mstoll@sfexaminer.com
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