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August 24, 2020

Non-Profit Organizations

Morse Life Health Systems is a senior healthcare facility in West Palm Beach which provides numerous services including assisted living, hospice and rehabilitation facilities. It also maintains luxury assisted/living and retirement apartments. The CEO of Morse Life is Keith Myers. Mr. Myers salary from Morse Life is approximately 1.3 million. However, he also earns millions of dollars (at least $1.5) from affiliates of Morse Life, including its fundraising entities and supporting entities. His total compensation dramatically exceeds that paid to CEOs of much larger assisted living facilities, including those in cities like NYC where the cost of living is far higher than West Palm Beach. Indeed, the CEO of the largest similar retirement facility in the NY metro area (which is many times larger than Morse Life in revenue) was paid $1.5 million in total compensation.

Is Mr. Myers overpaid? If so, what board dynamics led to this overpayment? Who actually nominates board members? Are the board members qualified or merely large donors and friends?

If CEO Myers is overpaid, what remedies are available for restitution of this overpayment? Who may bring such a claim? Is the current board likely to do so? What IRS remedies are available and how can you access them?

Attached are the materials that have to be used in the paper, additional resources can be used but the ones I provided must be.

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