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The Honolulu Advertiser
Posted on: Saturday, May 15, 2004

Kamehameha costs detailed

By Vicki Viotti
Advertiser Staff Writer

Kamehameha Schools ended the 2003 fiscal year with net assets of $4.2 billion and spent almost $172.5 million on its programs, according to the Internal Revenue Service form filed yesterday for the tax-exempt educational trust.

The filing also details the year's major administrative costs for the schools, which educate children of Hawaiian ancestry. They include more than $1 million in salary and other compensation paid to Hamilton McCubbin, the chief executive officer who resigned a year ago. That figure includes $493,586 in salary, $353,253 in unspecified "deferred compensation" and benefits, and $181,451 for an expense account and other allowances.

McCubbin could not be reached for comment yesterday.

His successor, Dee Jay Mailer, took over in January; her compensation package has not been disclosed.

The largest compensation payout was $5.3 million paid to the architectural firm Group 70 International. Most of the company's work involved design of buildings on the trust's newest Maui and Big Island campuses, said Kamehameha Schools spokesman Kekoa Paulsen.

The schools' protracted courtroom battles to defend its Hawaiian-preference admission policy was one reason for the $1.5 million paid to law firms in Washington, D.C., Paulsen said. Of the total, $890,722 went to Miller & Chevalier and $623,767 to Hogan & Hartson LLP, according to the tax document.

Also, $1.2 million was paid to the schools' internal auditors KMH.

The spending for programs represents an increase of $33.5 million over the previous year. The school calculated that the allotment had served 4,427 students enrolled at its three campuses. About $21 million in scholarships and financial aid went to 7,517 students. The programs also included community outreach, conferences, workshops, distance education and other activities.

Michael Chun, headmaster of the flagship campus on Kapalama Heights, earned $207,074 in salary and added compensation. D. Rod Chamberlain and Stan Fortuna, headmasters of the Maui and Hilo campuses, respectively, each earned just under $180,000 in salary and benefits. Expense allowances gave an additional $47,616 to Fortuna and $38,804 to Chamberlain.

After McCubbin, the highest-paid executive was former chief educational officer Dudley Hare Jr., with salary, benefits and expense allowance totalling $743,214.

Trustees Robert Kihune, Diane Plotts and Nainoa Thompson each earned $91,500 that year. J. Douglas Ing and Constance Lau, trustees who served successive terms chairing the board, earned $101,000 and $104,000, respectively

Reach Vicki Viotti at vviotti@honoluluadvertiser.com or 525-8053.