GLAAD CEO Sarah Kate Ellis

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GLAAD CEO Sarah Kate Ellis Under Fire Over Spending Habits

Sarah Kate Ellis, the long-serving president and CEO of GLAAD, is facing significant scrutiny following a recent investigation published by The New York Times. The detailed report, written by journalist Emily Steel, highlights concerns regarding Ellis’s spending and expenses during her tenure. The investigation delves into extravagant travel costs, home office renovations, and other expenses funded by the nonprofit organization.

GLAAD CEO Sarah Kate
GLAAD CEO Sarah Kate

Key Findings from the Investigation

Lavish Travel Expenses

According to the investigation, Ellis has incurred substantial travel expenses over the past 18 months. Notably, the report details a nearly $500,000 expenditure on renting a seven-bedroom chalet in Switzerland for a week while attending the World Economic Forum in Davos. Additionally, Ellis and GLAAD’s chief operating officer, Darra Gordon, reportedly racked up a $60,000 tab for airfare and accommodations at the Cannes Lions advertising summit in France. These expenses have sparked concerns about whether such lavish spending aligns with the nonprofit sector’s standards.

Home Office Renovation Costs

The New York Times investigation also reveals that Ellis billed GLAAD approximately $18,000 for a home office renovation at her Long Island residence. The upgrade, which reportedly included a new chandelier, has raised questions about the appropriateness of such expenditures for a nonprofit organization.

Frequent First-Class Travel

In another point of contention, Ellis reportedly took over 30 first-class flights in an 18-month period. This level of luxury travel, funded by GLAAD, is being questioned as possibly excessive and more in line with for-profit companies rather than nonprofit organizations.

GLAAD’s Response to the Investigation

Statement from Sarah Kate Ellis

In response to the allegations, Sarah Kate Ellis issued a statement emphasizing her commitment to financial stewardship. “I take my role as GLAAD’s financial steward incredibly seriously, and we’ll continue updating our procedures to keep pace with the organization’s rapid growth,” Ellis said. She further stressed the importance of GLAAD’s work amid increasing attacks on the LGBTQ community.

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Defense from GLAAD Spokesperson Rich Ferraro

GLAAD spokesperson Rich Ferraro defended Ellis by asserting that many of the questioned expenses, including travel and renovations, were intended to advance the organization’s mission or foster relationships with donors. He clarified that the Davos trip was funded by a donation from the Ariadne Getty Foundation, a longtime supporter of GLAAD.

Salary and Compensation Details

Ellis’s Salary and Contract

Sarah Kate Ellis, who has led GLAAD since 2014, renewed her contract in 2022, extending her tenure through 2027. According to the report, Ellis has a base salary of $441,000, with annual automatic increases of 5 percent and performance-related bonuses. Her total annual compensation could range from $700,000 to $1.3 million. However, GLAAD’s Rich Ferraro stated that it is “impossible” for Ellis to receive $1 million annually under her current contract.

Financial Impact and Organizational Growth

Under Ellis’s leadership, GLAAD has experienced significant growth, quadrupling its revenue to $19 million by 2022. This growth has been attributed to her efforts in revitalizing the organization and enhancing its influence in media and cultural circles.

Internal Concerns and External Criticism

Internal Financial Concerns

GLAAD’s chief financial officer, Emily Plauché, raised concerns about spending practices to Liz Jenkins, a chairwoman on the board of directors. In response, the board hired the law firm Sheppard Mullin to investigate the claims. The firm’s recommendations led to updates in GLAAD’s travel policies. Plauché left the organization shortly after.

External Criticism from The New York Times

The New York Times has been a vocal critic of GLAAD’s advocacy work, particularly regarding its coverage of the transgender community. GLAAD has accused the Times of producing “inaccurate, irresponsible” reporting that harms the LGBTQ community. A spokesperson for GLAAD criticized the Times for focusing on negative stories about the organization, while The Times stands by its reporting, stating it is based on objective information.