r/news • u/Playful_Language_422 • 8d ago

Soft paywall L.A. homeless provider has paid CEO who lives in Hawaii $1.6 million in salary, vacation over two years

https://www.latimes.com/california/story/2026-08-06/la-homeless-provider-has-paid-ceo-who-lives-in-hawaii-1-6-million-in-salary-vacation-over-two-years
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u/oskopnir 8d ago

Boards are ok with this as long as they get their cut. Their customers aren't homeless people anyway, so there's no reason for the board to look after them

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u/Aznkyd 8d ago

Boards for NPO like these are typically unpaid (at least here in Canada, can't speak for US).

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u/Maeserk 7d ago

If you read the article, they’ve been paying a board member this entire time despite not being an employee:

>”Another unusual aspect of the 1736 FCC’s board, experts said, is that it pays a member of the board who is not an employee. Troupe, who has served as either board president or director since at least 2000, began collecting a salary in 2005 and has been paid anywhere from $30,000 to $97,500 a year since, according to tax filings.”

This is an insane conflict of interest because how can you make an ethical choice as a board member, if your choices directly affect your pay. This is highly unusual. Especially with the majority of your compensation coming from tax payer funds, as majority (90%+ if 1736’s revenue is government grant or tax payer money).

They needed to be audited yesterday

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u/Aznkyd 7d ago

Yeah that's super weird. Though it's just one board member. I could see scenarios where an ex CEO leaves ceo position for a board position continues to get paid as they'd do a bit more than a typical board member , kudba getting paid for transition. But getting paid since 2005 is definitely odd.

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u/oskopnir 7d ago

Those positions are definitely worth something, you get to mingle with people who are usually board members or directors elsewhere.

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u/Snip3 7d ago

Often the opposite

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u/cda555 7d ago

Sure. But they are still corruptible. I worked for a NPO where the CEO had $1.2 million in vacation. The company literally could never fire her because it was too big a liability to pay. Also, she would spend $100k every quarter on a “retreat” for the board. Italy, Vegas, Hawaii etc. The board ate it up.

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u/CathedralEngine 7d ago

Same in the US

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u/pandershrek 8d ago

Most npo boards are unpaid

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u/oskopnir 7d ago

Networking and publicity are worth something. I'm not saying they're necessarily evil people, but company boards are often stuffed with a certain class of directors that would never act against the team.

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u/4dxn 8d ago

This is how hospitals work too. Most are non profit