Report Scrutinizes Smithsonian Salaries

SBV disputed some of the findings and said the report didn't take into account the drop in museum visitation and magazine advertising. The report said the inspector general would continue to look into SBV's financial performance and urged Secretary Small to review its compensation policy. Burke said the Smithsonian would not review the practice in all SBV departments, but only in the museum retail operation.

The report on non-SBV executive compensation did not have any recommendations. It did note, however, that executives in the top pay tier got more than their federal counterparts, even when they had smaller staffs and budgets. In 2005, the report said, three trust executives were paid "73 to 130 percent more than their federal counterparts."

Burke said that Smithsonian leaders generally agreed with the report but made some exceptions. Burke said it was "inappropriate" to compare the salaries of the Smithsonian's privately funded employees to their counterparts in federal service because they had different systems. For example, she said, federal employees have certain job protections, especially against being fired. Smithsonian employees paid with private funds have no such protections, she said, and "trust employees may receive higher compensation to make up for this lack of job security." The Smithsonian executives also have broader responsibilities, such as fundraising.

Small reported in a briefing yesterday that the Smithsonian had raised $1 billion from the private sector since 2000, more than the institution had raised in its previous 153 years.

Burke also criticized the report for not looking closer at salaries in the academic and nonprofit sector, where the Smithsonian does a lot of recruiting. She cited an outside 2006 review that said "the Smithsonian's compensation of its museum directors was 12.9 percent below the market rate."

The report did raise concerns about relocation bonuses and expense reimbursements, saying the standards were inconsistent. In some cases, the report found relocation expenses processed as purchase orders or contained in travel vouchers.

"Payments processed in this manner are unlikely to be reported as income," the report said. The inspector general said a separate audit on relocation payments is planned.

The report also raised questions about the revolving door of some federal employees who left the Smithsonian and returned as private employees with hefty pay raises. Burke defended the practice by saying it was the only way to keep those people from leaving for more lucrative jobs: "Offering a higher-paying trust position to these retiring federal employees was necessary to prevent them from offering their experience and talent to a private or nonprofit sector employer capable of paying far more than the federal pay system would allow."