Americans for Educational Testing Reform has a simple mission: to repeal the 501(c)(3) tax-exempt status granted to ETS, Collegeboard, and ACT, Inc.

IRS Investigation of Test-Maker Pay Sought

From FairTest:

The Attorney General of Iowa has asked the U.S. Internal Revenue Service (IRS) to investigate the high fees ACT Inc., a non-profit corporation, pays its board members and officers. The test development and education research firm is based in Iowa City.

The call for a federal review came in response to a Des Moines Register newspaper exposé, which disclosed that some ACT board members received more than $40,000 annually to attend four meetings, review documents and participate in conference calls. In addition, the Chairman and Chief Executive Officer, Richard Ferguson, received total compensation of $596,000 in the company’s fiscal year ending in August 2005, the most recent on record. Four other top officers were paid more than a quarter million dollars each. FairTest assisted Register investigative reporter Lee Rood, who researched and wrote the article.

ACT Inc. Board, CEO Paid Higher Than Most Nonprofits

From Diverse Education:

The Iowa City-based nonprofit organization that develops ACT college entrance tests pays its board and its top executive more than almost all other nonprofit organizations in the United States.

ACT Inc. pays its 14-member board of directors about $520,000 a year and its chairman and CEO Richard Ferguson a base salary of about $508,000 annually, according to a copyright story in the Des Moines Sunday Register.