AETR REPORT CARD
College Board Grade: D
45 Columbus Avenue
College Board has an "unsatisfactory record" with the BBB
New York, NY 10023
Contact College Board at http://www.collegeboard.com/html/communications000.html
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Introduction
College Board, the only one of the Big 3 to focus on test development over test administration, is the most responsible of the Big 3. Unlike ETS and ACT Inc, it conforms with the non-profit industry's custom of an all-volunteer Board of Trustees. That being said, College Board is equally guilty of overcompensating its top executives. Furthermore, College Board spends more on political lobbying than ETS and ACT Inc combined - it expended a staggering three-quarters of a million dollars in efforts to directly influence legislators and government officials in multiple states.
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Mission Statement
"To connect students to college success and opportunity."
- From "About the College Board"
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Facts and Figures
| Profit (Gross) | $53 million |
• 8.6% of Revenue • Profits are 317% of the industry average |
|---|---|---|
| CEO Compensation | $872,061 |
• Mr. Gaston Caperton • Earning 444% of the industry average |
| Trustee Compensation (Avg) | $0 |
• Total of thirty one trustees/board members; 4 of them are paid • Does NOT follow IRS recommendations. (See how ACT Inc board member compensation compares with the industry.) |
| Political Lobbying | $766,354 |
• College Board incurred these expenses while it "attempted to influence national, state, or local legislation, includ[ing] any attempt to influence public opinion on a legislative matter or referendum." (More about lobbying) |
NOTE: Facts and figures are based on the College Board tax filing (IRS Form 990) from 2009, the most recent records available as of Oct 3, 2011. This document and other financial records are available for download below.
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Specific Areas of Misconduct by ETS
Common in the Industry
1) PROFITS. College Board earned profits of 8.6% in 2009 - profits that would be respectable for a for-profit company. When a non-profit company is earning those profits, something is wrong. Learn more about the Big 3's big profits.
2) EXORBITANT OFFICER COMPENSATION. CEO Gaston Caperton is being compensated $872,061 per year. That is more than twice the President of the United States's annual salary of $400,000. CollegeBoard's 23 executives make an average of $355,271 per year. These salaries are far too high for a non-profit company. Learn more about the Big 3's exorbitant executive compensation.
3) SELLING TEST PREPARATION MATERIALS. It is unethical for a testing company to sell test prep materials (see the official "SAT Prep Store" online) because it is morally and legally obligated to treat all test-takers fairly. Selling test materials only gives an advantage to wealthier students - College Board should leave test preparation to unrelated for-profit companies. Learn more about the Big 3's unethical sales of prep materials.
4) POLITICAL MANIPULATION. College Board spent more than three quarters of a million dollars in "direct" lobbying in 2009, far more than the rest of the Big 3 combined. This money was used to influence your legislators and government officials to adopt, and even require, College Board tests for various educational and professional purposes. A company is given non-profit status in order to serve the public interest, not to covertly manipulate legislators in order to expand its monopoly position. College Board needs to reign in its extravagant and inappropriate manipulations of our government. Learn more about how the Big 3 manipulate politics.
5) INADEQUATE GRADING PERFORMANCE. Despite repeated criticism over the years, College Board continues to suffer from poor grading performance (including thousands of mis-scored tests in October 2005). Perhaps this is in order to reap greater financial rewards - for example, College Board charges $50 to re-score the SAT exam. Remarkably, even if it is discovered that College Board has graded inaccurately, test-takers are not entitled to a refund of any sort. College Board needs to implement a higher standard of quality assurance in its grading and take responsibility for its errors.
Unique to College Board
6) CONTRACTING WITH ETS. For decades, College Board has been developing standardized tests, then contracting with ETS (the largest of the "Big 3") to administer them. ETS has an atrocious track record of customer service, grading performance, and ethical responsibility in general. College Board needs to help American test-takers hold ETS responsible.
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Criticism From Other Sources
• FairTest.Org
"College Admissions Testing: The Real Beneficiaries." (Oct 2001)
http://www.fairtest.org/college-admissions-testing-real-beneficiaries
• New York Times
"SAT Problems Even Larger Than Reported ." By Karen W. Arenson(23 Mar 2006)
http://www.nytimes.com/2006/03/23/education/23sat.html?_r=1
• FairTest.Org
"No 'Pay for Performance' at Testing Companies." (May 2006)
http://www.fairtest.org/no-pay-performance-testing-companies
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Finacial Records (PDF Format)
- • IRS Form 990 (2005)
- • IRS Form 990 (2006)
- • IRS Form 990 (2007)
- • IRS Form 990 (2008)
- • IRS Form 990 (2009)

