First class flights, Swiss chalets: US entrepreneur accused of excessive spending

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First class flights, Swiss chalets: US entrepreneur accused of excessive spending

First class flights, Swiss chalets: US entrepreneur accused of excessive spending

GLAAD President and CEO Sarah Kate Ellis is facing criticism after a shocking incident. new York Times The report claimed he had spent lavishly, including purchasing a $22,000 first-class ticket to Cannes Lions and renovating his home office with money he received from a nonprofit LGBTQ advocacy organization.

The investigation, which looked at payments between January 2022 and June 2023, claims that Ellis’ spending habits may have been against Internal Revenue Service rules in addition to those of the LGBTQ organization. The spending habits of Ellis, 52, also worried the company’s former chief financial officer.

According to the NYT, GLAAD’s internal travel guidelines advised employees to “be cost conscious,” use public transportation, and book economy flights. However, when examining GLAAD’s expense reports, employment contracts, tax returns, and additional documents, the outlet found that the CEO had taken more than 30 first-class flights in a year and a half (including a $21,743 Delta One trip to the Cannes Lions), spent nearly half a million dollars to rent a seven-bedroom chalet in Switzerland for a week while attending the World Economic Forum in Davos, and hired private transportation services. In addition, his renovation contract included $25,000 for the rental of a summer home in Provincetown, Massachusetts, and $20,000 to remodel his home office, adding ivory pillows and a chandelier.

A GLAAD representative told the NYT that the renovations made the area “suitable” for virtual events and televised programs. All of these costs were in addition to Ellis’ annual salary, which was reported to be $441,000. However, due to several bonuses, his actual remuneration could range from $700,000 to $1.3 million. GLAAD spokesperson Richard Ferraro told the outlet that GLAAD was “eager to retain him” as a result of his achievements and that reaching the latter amount would be “practically impossible”.

In 2023, GLAAD’s then-chief financial officer Emily Plauché warned Liz Jenkins, the chairwoman of the company’s board of directors, that the money was not being properly disclosed to the Internal Revenue Service. However, the organization revised its travel rules after an investigation by a law firm into her concerns.

GLAAD supported the expenditure, and the chairman of its board of directors declared that the board “stands firmly” behind Ellis. He said the home renovation was done during the COVID-19 pandemic due to his on-camera appearances and virtual events and was approved by the board of directors. Meanwhile, the rental of the summer home to hold meetings with donors was a business expense.

The spokesperson also highlighted GLAAD’s criticism of the NYT, which claimed the newspaper published “inaccurate, biased articles about transgender people” during a year-long campaign. In its report, the NYT acknowledged this criticism and affirmed the quality of its work.

The chairwoman said she supports Ellis “with respect and admiration as he and his team lead a movement at a time when our community is under attack. We are confident they are doing so with integrity and that they share the board’s commitment to strong governance and business practices.”

“I take my role as GLAAD’s financial manager very seriously, and we will continue to update our processes to keep pace with the organization’s rapid growth,” Ellis said.

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