Recently, Guidestar.org published the most currently available IRS Form 990 for ABT. It covers the tax year 2011 and includes some disturbing information.
Last spring when Kevin McKenzie acknowledged that donations were down, he seemed unwilling to admit that the severe downturn in the public's financial support was a loud "Vote of No Confidence" for the way he is mismanaging ABT.
Contributions dropped an unheard of 32% – nearly $6 million – from $18,570,819 to $12,699,853.
(Click on image to enlarge and clarify.)
A comparison of the latest Form 990 with the prior year's 990 revealed that in spite of the catastrophic drop in donations, McKenzie got a whopping $31,708 increase in total compensation while Executive Director Rachel Moore was granted an outrageous increase of $60,241. This seems to be a very screwy application of the pay-for-performance executive compensation model – unless, of course, the Board's stated objective was to lose $6 million in contributions.
2011 (Click on images to enlarge and clarify.)
2010
In 2011, the ABT Board saw a reduction of four members including Lewis Ranieri, Nancy Ellison, and Susan Fales-Hill. These are big, influencial names in the world of finance, arts, and philanthropy and were big losses for ABT. Devotion of their magnitude is hard to find.
What is and has been so odd about the ABT Board – and what may explain its inability to function responsibly – is that it is not truly and totally independent in the way nonprofit boards are expected to be. Two board seats are allocated to Kevin McKenzie and Rachel Moore who have the opportunity to quickly explain away and dismiss any other board member's concerns and advocate eagerly for their own interests. Ms. Moore not only garnered a $60,241 increase in compensation in 2011, but last year she was able to get herself elevated from Executive Director to CEO, directly causing the resignation of longtime board member Rod Brayman who objected strongly to the change. It seems that being known as a flagship Executive Director wasn't title-enough for Ms. Moore even though several of the most gifted and promotable soloists in the company have had to bear that same terminally inferior designation.
The board of an organization that is as artistically and financially troubled as ABT cannot have the candid, spontaneous, and forthright discussions that it needs to have in order to ascertain its proper course of action if Rachel Moore and Kevin McKenzie are running interference and manipulating the conversation. How can the board have honest, spontaneous, forthright discussions about replacing the director when he and his cohort are sitting in the room? Any request by the board for them to leave or not attend the meeting would just send them into damage-control overdrive.
By contrast, the NYCB board is 100% independent; neither Peter Martins nor the Executive Director sits on the board. For the same financial reporting period, NYCB's contributions increased by $144,797. Tickets priced at $29 are available in every level of the house that is open for sale, and Society NYCB members buy tickets for $17. Furthermore, the company was able to promote two homegrown artists to principal last year, and last month, promoted 11 more artists including three to the rank of principal – again, all homegrown artists.