Fitzgerald slams VisitPittsburgh exec's pay
Allegheny County Executive Rich Fitzgerald on Tuesday compared the top salary at the nonprofit tourism bureau VisitPittsburgh to that of the president of the United States, and said he wanted to reduce lofty salaries at the taxpayer-funded agency.
“We'll be looking into bringing these salaries in line. I think $350,000 is just not what people being paid with taxpayer money should be making,” Fitzgerald said. “That's about what the president is paid.”
Joe McGrath, who became the agency's executive chairman in March after 22 years as CEO, made $353,680 last year. Total benefits and other compensation brought the total to $390,563. President Obama's salary is $400,000 a year.
Connie George, a spokeswoman for VisitPittsburgh, confirmed McGrath's salary, but declined to provide the agency's latest IRS filings that contain salary information because they are being audited and haven't been finalized. Tax-exempt organizations are required to file information annually about their missions, programs and finances with the IRS.
“All I can say is that I've been doing this for 39 years,” McGrath said. “I help employ tens of thousands of people, and we're a leader in the nation in performance and growth.”
He said he doesn't determine his own salary.
“It goes to a compensation committee and a board of directors and they set my salary and compensation,” McGrath said.
George said McGrath and others at the agency have earned the bonuses.
“Our hotel occupancy rate is the highest it has been in 20 years,” George said. “Our hotels are full.”
Craig Davis, VisitPittsburgh's president and CEO, is paid about $240,000 a year. He replaced McGrath in the job in March.
Most of VisitPittsburgh's funding comes from a portion of Allegheny County's 7 percent tax on hotel room stays.
In 2010, the tax generated about $7.7 million of the agency's $9 million in revenue. It receives some money, about $493,000 in 2010, from member organizations that support the organization's efforts to increase tourism and attract lucrative conventions and sporting events.
VisitPittsburgh employs about 50 people. Salaries and other compensation and benefits accounted for about $4.8 million in expenditures in 2010, just more than half of revenues received.
George said the nonprofit's board of directors this year extended McGrath's contract until June 30, when he is due to retire. McGrath said he is staying through June because he is serving as chairman of the board for the Pennsylvania Association of Travel & Tourism, which is working with the governor's office and other state officials on a new way to promote tourism.
George said the tourism bureau's employees are eligible for performance bonuses ranging from 6 percent up to 25 percent for the CEO. Tax filings from 2010 show McGrath when he was CEO received a bonus of $66,514 on top of a base salary of $278,392. He received $35,000 in retirement and deferred compensation and non-taxable benefits.
VisitPittsburgh is complying with a request that County Controller Chelsa Wagner submitted on Tuesday to provide several annual audit reports, George said.
State Sen. Jim Ferlo, D-Highland Park, said the agency deserves more scrutiny. He said he shared his concerns with Fitzgerald.
“I think they're too bloated,” Ferlo said.
Jeremy Boren is a staff writer for Trib Total Media. He can be reached at 412-320-7935 or jboren@tribweb.com.
