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ObjectId: 202032279349300423 - Submission: 2020-08-14
TIN: 21-0634479
Schedule J
(Form 990)
Department of the Treasury
Internal Revenue Service
Compensation Information
For certain Officers, Directors, Trustees, Key Employees, and Highest
Compensated Employees
Complete if the organization answered "Yes" on Form 990, Part IV, line 23.
Attach to Form 990.
Go to
www.irs.gov/Form990
for instructions and the latest information.
OMB No. 1545-0047
20
18
Open to Public Inspection
Name of the organization
EDUCATIONAL TESTING SERVICE
Employer identification number
21-0634479
Part I
Questions Regarding Compensation
Yes
No
1a
Check the appropiate box(es) if the organization provided any of the following to or for a person listed on Form
990, Part VII, Section A, line 1a. Complete Part III to provide any relevant information regarding these items.
First-class or charter travel
Housing allowance or residence for personal use
Travel for companions
Payments for business use of personal residence
Tax idemnification and gross-up payments
Health or social club dues or initiation fees
Discretionary spending account
Personal services (e.g., maid, chauffeur, chef)
b
If any of the boxes in line 1a are checked, did the organization follow a written policy regarding payment or reimbursement or provision of all of the expenses described above? If "No," complete Part III to explain
.........
1b
Yes
2
Did the organization require substantiation prior to reimbursing or allowing expenses incurred by all
directors, trustees, officers, including the CEO/Executive Director, regarding the items checked in line 1a?
..
2
Yes
3
Indicate which, if any, of the following the filing organization used to establish the compensation of the
organization's CEO/Executive Director. Check all that apply. Do not check any boxes for methods
used by a related organization to establish compensation of the CEO/Executive Director, but explain in Part III.
Compensation committee
Written employment contract
Independent compensation consultant
Compensation survey or study
Form 990 of other organizations
Approval by the board or compensation committee
4
During the year, did any person listed on Form 990, Part VII, Section A, line 1a, with respect to the filing organization or a related organization:
a
Receive a severance payment or change-of-control payment?
.............
4a
Yes
b
Participate in, or receive payment from, a supplemental nonqualified retirement plan?
.........
4b
Yes
c
Participate in, or receive payment from, an equity-based compensation arrangement?
.........
4c
No
If "Yes" to any of lines 4a-c, list the persons and provide the applicable amounts for each item in Part III.
Only 501(c)(3), 501(c)(4), and 501(c)(29) organizations must complete lines 5-9.
5
For persons listed on Form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the revenues of:
a
The organization?
....................
5a
No
b
Any related organization?
.......................
5b
No
If "Yes," on line 5a or 5b, describe in Part III.
6
For persons listed on Form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the net earnings of:
a
The organization?
..................
6a
Yes
b
Any related organization?
......................
6b
No
If "Yes," on line 6a or 6b, describe in Part III.
7
For persons listed on Form 990, Part VII, Section A, line 1a, did the organization provide any nonfixed
payments not described in lines 5 and 6? If "Yes," describe in Part III
............
7
Yes
8
Were any amounts reported on Form 990, Part VII, paid or accured pursuant to a contract that was
subject to the initial contract exception described in Regulations section 53.4958-4(a)(3)? If "Yes," describe
in Part III
..........................
8
No
9
If "Yes" on line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section 53.4958-6(c)?
.........................
9
For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50053T
Schedule J (Form 990) 2018
Page 2
Schedule J (Form 990) 2018
Page
2
Part II
Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees.
Use duplicate copies if additional space is needed.
For each individual whose compensation must be reported on Schedule J, report compensation from the organization on row (i) and from related organizations, described in the
instructions, on row (ii). Do not list any individuals that are not listed on Form 990, Part VII.
Note.
The sum of columns (B)(i)-(iii) for each listed individual must equal the total amount of Form 990, Part VII, Section A, line 1a, applicable column (D) and (E) amounts for that individual.
(A)
Name and Title
(B)
Breakdown of W-2 and/or 1099-MISC compensation
(C)
Retirement and other deferred compensation
(D)
Nontaxable
benefits
(E)
Total of columns
(B)(i)-(D)
(F)
Compensation in column (B) reported as deferred on prior Form 990
(i)
Base
compensation
(ii)
Bonus & incentive
compensation
(iii)
Other
reportable compensation
1
MACDONALD WALTER B
PRESIDENT
(i)
(ii)
677,421
-------------
0
422,500
-------------
0
208,586
-------------
0
24,750
-------------
0
17,217
-------------
0
1,350,474
-------------
0
0
-------------
0
2
BAILEY DIANE A
SVP, PRODUCTION & DELIVERY
(i)
(ii)
299,113
-------------
0
193,213
-------------
0
44,372
-------------
0
40,122
-------------
0
16,332
-------------
0
593,152
-------------
0
0
-------------
0
3
BASEHORE JOHN
VP & TREASURER
(i)
(ii)
213,475
-------------
0
130,250
-------------
0
65,052
-------------
0
32,154
-------------
0
19,148
-------------
0
460,079
-------------
0
0
-------------
0
4
DONADO YVETTE
SVP & CHIEF ADMIN OFFICER
(i)
(ii)
54,193
-------------
0
80,813
-------------
0
373,917
-------------
0
7,385
-------------
0
4,799
-------------
0
521,107
-------------
0
0
-------------
0
5
DRAPER JR WILLIAM C
VP & COO COLLEGE BOARD
(i)
(ii)
240,302
-------------
0
139,125
-------------
0
49,921
-------------
0
33,338
-------------
0
2,650
-------------
0
465,336
-------------
0
0
-------------
0
6
ERCIKAN-ALPER KADRIYE
VP STAT ANALYSIS & PSYCH RSRCH
(i)
(ii)
202,792
-------------
0
125,000
-------------
0
50,957
-------------
0
29,150
-------------
0
25,057
-------------
0
432,956
-------------
0
0
-------------
0
7
FARNUM MARISA
VP-ASSESSMENT DEVELOPMENT
(i)
(ii)
204,719
-------------
0
112,500
-------------
0
56,849
-------------
0
20,769
-------------
0
17,440
-------------
0
412,277
-------------
0
0
-------------
0
8
FREDDO MICHAEL J
VP & CONTROLLER
(i)
(ii)
200,891
-------------
0
135,438
-------------
0
103,164
-------------
0
20,736
-------------
0
17,517
-------------
0
477,746
-------------
0
0
-------------
0
9
GILBERTSON BRUCE M
VP FACILITIES & REAL ESTATE
(i)
(ii)
212,033
-------------
0
125,250
-------------
0
61,576
-------------
0
19,939
-------------
0
0
-------------
0
418,798
-------------
0
75,130
-------------
0
10
GORIN JOANNA
VP RESEARCH
(i)
(ii)
226,392
-------------
0
135,713
-------------
0
110,317
-------------
0
32,552
-------------
0
18,048
-------------
0
523,022
-------------
0
0
-------------
0
11
HAYON JACK
SVP & CHIEF FINANCIAL OFFICER
(i)
(ii)
355,015
-------------
0
280,525
-------------
0
132,742
-------------
0
24,750
-------------
0
25,322
-------------
0
818,354
-------------
0
0
-------------
0
12
HERNANDEZ SANDRA
VP-FINANCE
(i)
(ii)
230,778
-------------
0
142,313
-------------
0
41,656
-------------
0
23,633
-------------
0
16,717
-------------
0
455,097
-------------
0
0
-------------
0
13
HOBSON DAVID
VP & CORPORATE SECRETARY
(i)
(ii)
196,773
-------------
0
132,000
-------------
0
84,373
-------------
0
19,149
-------------
0
16,812
-------------
0
449,107
-------------
0
0
-------------
0
14
HUNT DAVID
EXECUTIVE VP & COO
(i)
(ii)
378,557
-------------
0
318,750
-------------
0
57,061
-------------
0
52,741
-------------
0
26,590
-------------
0
833,699
-------------
0
0
-------------
0
15
JOHNSON-GREGORY SHEREE L
VP ASSOC GENERAL COUNSEL & CDO
(i)
(ii)
260,040
-------------
0
134,875
-------------
0
70,190
-------------
0
23,157
-------------
0
23,691
-------------
0
511,953
-------------
0
0
-------------
0
16
LAWRENCE IDA M
SR VP-RESEARCH & DEVELOPMENT
(i)
(ii)
312,110
-------------
0
178,375
-------------
0
72,940
-------------
0
23,581
-------------
0
18,224
-------------
0
605,230
-------------
0
0
-------------
0
17
LESTER SARA
VP HUMAN RESOURCES & LEARNING
(i)
(ii)
200,572
-------------
0
6,337
-------------
0
41,000
-------------
0
28,770
-------------
0
3,400
-------------
0
280,079
-------------
0
0
-------------
0
18
NELSON SCOTT F
SVP & CHIEF MARKETING OFFICER
(i)
(ii)
286,425
-------------
0
183,013
-------------
0
49,116
-------------
0
43,775
-------------
0
25,057
-------------
0
587,386
-------------
0
0
-------------
0
19
NETTLES MICHAEL T
SVP-CTR POLICY EVAL & RSRCH
(i)
(ii)
264,838
-------------
0
156,125
-------------
0
66,277
-------------
0
22,255
-------------
0
26,087
-------------
0
535,582
-------------
0
0
-------------
0
20
OSWALD JOHN
VP CLIENT RELATIONS & OUTREACH
(i)
(ii)
276,281
-------------
0
101,588
-------------
0
25,363
-------------
0
24,750
-------------
0
16,548
-------------
0
444,530
-------------
0
0
-------------
0
21
PAYNE DAVID G
VP & COO GLOBAL EDUCATION
(i)
(ii)
263,501
-------------
0
154,750
-------------
0
79,575
-------------
0
22,279
-------------
0
24,803
-------------
0
544,908
-------------
0
0
-------------
0
22
PFUND REBECCA
CHIEF INFORMATION OFFICER
(i)
(ii)
253,410
-------------
0
192,500
-------------
0
42,399
-------------
0
38,008
-------------
0
24,996
-------------
0
551,313
-------------
0
0
-------------
0
23
POTE STEPHEN K
VP CHIEF QUALITY OFFICER
(i)
(ii)
119,498
-------------
0
118,013
-------------
0
317,564
-------------
0
12,466
-------------
0
7,711
-------------
0
575,252
-------------
0
78,880
-------------
0
24
ROBINSON DIERDRE
VP & CLO SWS
(i)
(ii)
8,550
-------------
0
0
-------------
0
425,546
-------------
0
831
-------------
0
369
-------------
0
435,296
-------------
0
0
-------------
0
25
ROCKEY ANNE F
VP - OPERATIONS
(i)
(ii)
245,113
-------------
0
127,250
-------------
0
10,946
-------------
0
33,584
-------------
0
16,592
-------------
0
433,485
-------------
0
0
-------------
0
26
SCHROEDER GLENN C
SVP & GENERAL COUNSEL
(i)
(ii)
344,235
-------------
0
240,175
-------------
0
99,576
-------------
0
24,641
-------------
0
17,532
-------------
0
726,159
-------------
0
0
-------------
0
27
WAKEMAN DANIEL
VP & CHIEF INFORMATION OFFICER
(i)
(ii)
207,798
-------------
0
110,000
-------------
0
128,431
-------------
0
20,257
-------------
0
25,889
-------------
0
492,375
-------------
0
81,269
-------------
0
28
WEAVER SCOTT V
VP CHIEF STRATEGY OFFICER
(i)
(ii)
264,079
-------------
0
161,013
-------------
0
82,573
-------------
0
37,468
-------------
0
26,480
-------------
0
571,613
-------------
0
0
-------------
0
29
WILLIAMSON DAVID
VP NEW PRODUCT DEVELOPMENT
(i)
(ii)
209,257
-------------
0
127,188
-------------
0
20,903
-------------
0
29,152
-------------
0
23,940
-------------
0
410,440
-------------
0
0
-------------
0
30
HUDE TRACY
VP - FINANCE (AS OF 09/14/19)
(i)
(ii)
197,078
-------------
0
67,208
-------------
0
24,978
-------------
0
26,928
-------------
0
1,608
-------------
0
317,800
-------------
0
0
-------------
0
31
BENNETT RANDY E
FREDERIKSEN CHAIR ASSESSMENT
(i)
(ii)
308,749
-------------
0
33,781
-------------
0
28,867
-------------
0
23,771
-------------
0
8,864
-------------
0
404,032
-------------
0
0
-------------
0
32
CHAN PETER
GNRL MGR, APPLICATION DEVELOP
(i)
(ii)
230,629
-------------
0
66,342
-------------
0
45,089
-------------
0
31,428
-------------
0
25,057
-------------
0
398,545
-------------
0
0
-------------
0
33
KIRSCH IRWIN
TYLER CHAIR LG SCALE ASSESSMEN
(i)
(ii)
275,596
-------------
0
77,058
-------------
0
28,425
-------------
0
22,505
-------------
0
17,764
-------------
0
421,348
-------------
0
0
-------------
0
34
MCHALE FREDERICK
GENERAL MANAGER, STAT ANALYSIS
(i)
(ii)
241,502
-------------
0
61,876
-------------
0
18,758
-------------
0
22,119
-------------
0
16,332
-------------
0
360,587
-------------
0
0
-------------
0
35
PATANELLARICHARD J
CHIEF FINANCIAL ADVISOR
(i)
(ii)
211,486
-------------
0
33,000
-------------
0
96,725
-------------
0
20,868
-------------
0
18,982
-------------
0
381,061
-------------
0
0
-------------
0
36
VALDES GUADALUPE
FORMER TRUSTEE
(i)
(ii)
11,750
-------------
0
0
-------------
0
0
-------------
0
0
-------------
0
0
-------------
0
11,750
-------------
0
0
-------------
0
37
WINCKLER GEORG
FORMER TRUSTEE
(i)
(ii)
26,000
-------------
0
0
-------------
0
0
-------------
0
0
-------------
0
0
-------------
0
26,000
-------------
0
0
-------------
0
38
ELLIOTT THOMAS J
FORMER VP & CLO SWS
(i)
(ii)
113,284
-------------
0
4,073
-------------
0
14,886
-------------
0
12,217
-------------
0
25,825
-------------
0
170,285
-------------
0
0
-------------
0
39
KERINS NANCY J
FORMER SVP-PROD & DELIVERY
(i)
(ii)
0
-------------
0
0
-------------
0
356,956
-------------
0
0
-------------
0
0
-------------
0
356,956
-------------
0
0
-------------
0
40
LAZER STEPHEN
FORMER VP-STUD & TEACH ASSESS
(i)
(ii)
0
-------------
0
261,563
-------------
0
0
-------------
0
0
-------------
0
0
-------------
0
261,563
-------------
0
0
-------------
0
41
MAZZEO JOHN
FORMER VP STAT ANALYSIS & PSYCH
(i)
(ii)
257,654
-------------
0
22,100
-------------
0
26,342
-------------
0
22,116
-------------
0
0
-------------
0
328,212
-------------
0
0
-------------
0
Schedule J (Form 990) 2018
Page 3
Schedule J (Form 990) 2018
Page
3
Part III
Supplemental Information
Provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 3, 4a, 4b, 4c, 5a, 5b, 6a, 6b, 7, and 8, and for Part II. Also complete this part for any additional information.
Return Reference
Explanation
PART I, LINE 1A
TAX GROSS-UP PAYMENTS/PERSONAL SERVICES: TWENTY THREE OFFICERS RECEIVED THIS BENEFIT (RELATED TO FINANCIAL PLANNING) DURING 2018. IT WAS TREATED AS TAXABLE COMPENSATION TO THE INDIVIDUALS. HOUSING ALLOWANCE OR RESIDENCE FOR PERSONAL USE: ONE OFFICER RECEIVED THIS BENEFIT DURING 2018. IT WAS TREATED AS TAXABLE COMPENSATION TO THE INDIVIDUAL.
PART I, LINE 3
ETS ENGAGES AN EXTERNAL INDEPENDENT EXECUTIVE COMPENSATION CONSULTANT ORGANIZATION ("IECCO") TO REVIEW AND ADVISE ON WORKER COMPENSATION LAWS. FURTHER, THE IECCO PREPARES AN ANNUAL REPORT OF PROPOSED COMPENSATION FOR ETS'S CEO AND OFFICERS EVALUATING THE REASONABLENESS OF THE COMPENSATION, AS DEFINED BY THE IRS INTERMEDIATE SANCTION RULES. THE REPORT ASSESSES THE RELEVANT LABOR MARKET FOR OFFICER ROLES USING NATIONAL DATA FROM COMPARABLE ORGANIZATIONS OF SIMILAR SIZE AND COMPLEXITY. THEN, CONSISTENT WITH THE COMPOSITION OF THE LABOR MARKETS IN WHICH ETS COMPETES FOR EXECUTIVE TALENT, APPROPRIATE COMPARATIVE ANALYSES ARE DEVELOPED FROM BOTH NOT-FOR-PROFIT AND FOR-PROFIT DATA. FINALLY, THE IECCO PREPARES A LETTER OF REASONABLENESS REGARDING THE ANALYSES OF OFFICER PAY CONSISTENT WITH GOVERNMENT GUIDELINES WHICH IS PRESENTED TO THE COMMITTEE ON GOVERNANCE AND HUMAN RESOURCES AND THE BOARD FOR REVIEW, COMMENT AND APPROVAL.
PART I, LINES 4A-B
LINE 4A: FOUR OFFICERS, YVETTE DONADO, STEPHEN POTE, DIERDRE ROBINSON AND NANCY KERINS RECEIVED SEVERANCE PAYMENTS OF $337,500, $123,462, $370,000 AND $351,000 RESPECTIVELY, FROM THE ORGANIZATION IN 2018. LINE 4B: OFFICERS AND OTHER EXECUTIVES PARTICIPATED IN A SUPPLEMENTAL NON-QUALIFIED RETIREMENT PLAN UNDER 457(F). THE NON-VESTED PORTION OF EACH OFFICER'S DEFERRED COMPENSATION IS REPORTED IN COLUMN C. THE VESTED PORTION OF EACH OFFICER'S DEFERRED COMPENSATION IS REPORTED IN COLUMNS B & F. IN 2018, NANCY KERINS RECEIVED A $10,693 PAYMENT FROM THE 457(F) PLAN.
PART I, LINE 6
ETS INVESTMENT COMPENSATION PROGRAMS ARE VARIABLE CASH COMPENSATION PROGRAMS TO PROVIDE EMPLOYEES EARNINGS OPPORTUNITIES IN ADDITION TO BASE PAY. THESE VARIABLE COMPENSATION COMPONENTS RECOGNIZE AND REWARD BASED ON INDIVIDUAL AND ETS PERFORMANCE. PAYMENT UNDER THESE PROGRAMS ARE REALIZED WHEN ETS MEETS AND ACHIEVES ITS ANNUAL PERFORMANCE TARGETS FOR THE YEAR, AS DETERMINED BY A HOLISTIC ASSESSMENT OF METRICS FROM ETS'S BALANCED SCORECARD OBJECTIVES INCLUDING FINANCIAL, OPERATIONAL, CUSTOMER AND GROWTH GOALS.
PART I, LINE 7
ETS INVESTMENT COMPENSATION PROGRAMS ARE VARIABLE CASH COMPENSATION PROGRAMS TO PROVIDE EMPLOYEES EARNINGS OPPORTUNITIES IN ADDITION TO BASE PAY. THESE VARIABLE COMPENSATION COMPONENTS RECOGNIZE AND REWARD BASED ON INDIVIDUAL AND ETS PERFORMANCE. PAYMENT UNDER THESE PROGRAMS ARE REALIZED WHEN ETS MEETS AND ACHIEVES ITS ANNUAL PERFORMANCE TARGETS FOR THE YEAR, AS DETERMINED BY A HOLISTIC ASSESSMENT OF METRICS FROM ETS'S BALANCED SCORECARD OBJECTIVES INCLUDING FINANCIAL, OPERATIONAL, CUSTOMER AND GROWTH GOALS.
Schedule J (Form 990) 2018
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