Kamehameha richer by $600M

By Rick Daysog
Advertiser Staff Writer

The Kamehameha Schools saw its net assets increase more than 12 percent to $4.8 billion during its 2004 fiscal year as the charitable trust spent more than $171 million on its educational programs, according to the estate's recent filing with the Internal Revenue Service.

The filing also shows that the Kamehameha Schools paid its top investment officer, Kirk Belsby, more than $523,000 during the 2004 fiscal year, which ended June 30. Belsby, the trust's vice president of endowment, received $375,000 in base compensation, $14,669 in employee benefits and $134,187 in expenses and other allowances.

The estate's chief executive officer, Dee Jay Mailer, who joined the estate near the middle of the fiscal year, received $204,403 in base salary and other allowances. Her annual pay is about $350,000.

Kamehameha Schools' total revenues soared to $483.5 million from $338.6 million in fiscal 2003. Net assets during the year rose to $4.8 billion from $4.2 billion.

"I don't think you'll find that the compensation levels are out of line with organizations of this size," said Kekoa Paulsen, the estate's spokesman.

The estate's annual filing with the IRS also disclosed pay figures for other top executives and educators, including:

• Colleen Wong, the trust's vice president for legal affairs, $240,744;

• Finance and administrative vice president Michael Loo, $230,414;

• Kapalama campus Headmaster Michael Chun, $215,413;

• Susan Todani, the estate's director of Mainland investments, $211,595.

Trustee Nainoa Thompson earned $118,000 and fellow board member Constance Lau was paid $113,500. Trustees Robert Kihune and Diane Plotts received $105,000 and $103,500, respectively, while trustee Douglas Ing earned $100,500. Trustee pay is based in part on the number of hours worked.

The trust also made hefty payments to its outside consultants, such as JP Morgan Research, which received $2.8 million for investment management services and Group 70 International, which earned $1.5 million for architectural services.

Legal costs for the school's lengthy defense of its Hawaiian-preference admission policy continued to mount last year. The Washington, D.C., law firm of Miller & Chevalier billed the trust nearly $1.7 million while the Cades Schutte law firm of Honolulu earned $1.3 million.

The estate said it spent a total of $171 million on educational and other programs, which compares with $172.5 million in the year-earlier period.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com or 525-8064.