Prairie Meadows CEO to cash in again in 2024 with 9% raise ― excluding likely bonus
As an expected third record-breaking year for wagering and revenues draws to a close, the head of the Prairie Meadows Race Track and Casino stands to make much more money next year than the vast majority of CEOs of charities in Iowa and across the country.
Prairie Meadows' 13-member board voted unanimously Wednesday night to give Gary Palmer, president and CEO of the Altoona racino, a 9% raise in 2024. That will bring his base salary to about $725,000, up from $664,000 in 2023.
The substantial hike doesn't include Palmer's as-yet undetermined bonus, which in other top-performing recent years has far exceeded his base pay.
More: Iowa’s top gambling regulator takes new job as Prairie Meadows senior vice president
With $254.1 million in revenue so far this year, the tax-exempt nonprofit is expected to break previous records by year's end. In 2022, Palmer, 77, received almost $1.6 million in salary, bonuses and other compensation, according to the nonprofit's tax return. The compensation included an $800,000 bonus ― 150% of his base salary.
Palmer's contract to lead the Polk County-owned facility runs through 2026. It makes millions in grants annually to beneficiaries ranging from the Des Moines Symphony to Youth Emergency Shelter & Services.
Historically, Palmer's raises have been approved unanimously by the board. In Thursday's vote, members of an executive committee said Palmer had done and exceptional job leading a major employer that widely benefits central Iowa, and contended Palmer made less than 50% of the salary paid to some of his peers.
But outside the county-owned gambling facility, Palmer's compensation at a social welfare nonprofit that exists to ease the burden of local government has been more controversial.
More: Witnesses to alleged armed robbery say fugitive developer's account doesn't add up
Created in 1989, Prairie Meadows has poured more than $1 billion into Polk County, the city of Altoona, local school districts and other organizations in central Iowa.
But reasonable compensation for executives, as required by IRS code, is difficult to determine for Prairie Meadows because no other nonprofit casino and track exists outside Iowa.
Prairie Meadows has said the CEO's pay is based on a compensation study that examined the salaries of leaders of both for-profit casinos and nonprofits with large revenues. But Prairie Meadows has declined to release the report publicly, saying some information obtained by the consultant hired to do comparisons was proprietary.
Lee Rood's Reader's Watchdog column helps Iowans get answers and accountability from public officials, the justice system, businesses and nonprofits. Reach her at lrood@registermedia.com, at 515-284-8549, on Twitter at @leerood or on Facebook at Facebook.com/readerswatchdog.
This article originally appeared on Des Moines Register: For Prairie Meadows CEO Gary Palmer, a 9% raise
