by Pete (last name withheld), The Trinity Foundation
After analyzing Jerry Falwell Jr’s Liberty University compensation, Trinity Foundation estimates tax penalties of $1,530,383 on golden parachute payments of $10.5 million.
Excessive compensation is a scandalously common practice in many religious institutions that needs to be carefully researched and exposed.
After a series of embarrassing disclosures of moral failures, Jerry Falwell Jr. has resigned as president of Liberty University.
Falwell is expected to receive $10.5 million after resigning from the world’s largest evangelical university. According to The Wall Street Journal, “Mr. Falwell is due his $1.25 million salary for two years, followed by a lump-sum payment of about $8 million, because of a clause in his contract that allowed him to resign with full pay if his responsibilities were curtailed.”
Liberty University alumni, current students, faculty, journalists and concerned Christians are questioning the legality of these payments. If Falwell’s contract included a morality clause, the board of trustees could have fired him for cause and no severance package would be required.
Offering Falwell two years’ worth of severance pay is questionable at best. In an article addressing the issue of severance payments to nonprofit employees, law firm Wagenmaker and Oberly suggests that Liberty must be able to justify the expense.
© 2020 The Trinity Foundation