08:11 AM PST on Tuesday, December 20, 2005

Associated Press

The president of Portland's Goodwill made an "unreasonable" amount of money in 2004, according to an audit by the Oregon attorney general's office.

KGW file photo

Portland Goodwill President Michael Miller.

Michael Miller earned more than $830,000 in pay and benefits last year, making him easily the highest-paid executive at Oregon's social service nonprofits, according to the audit obtained Monday by The Oregonian.

Miller also made more than executives at the other 172 Goodwill branches in North America.

"Law does not require executives to take a vow of poverty to work in the nonprofit sector," concluded the audit of Goodwill Industries of the Columbia Willamette. "But 'reasonable compensation' is a substantive legal standard."

Miller's compensation ranks him in the top 1 percent of all American wage earners, the audit found.

The Oregon Department of Justice began auditing the regional Goodwill early last year in response to a complaint that it is not meeting its charitable mission, which is the basis for its exemption from federal and state taxes.

Goodwill's chairman of the board, Thomas Young, said Monday that Miller, who has been president of the charity for 20 years, agreed to accept a 24 percent cut in his salary and performance bonus because he thinks the controversy has been a distraction.

Miller, who does not comment on his pay, has overseen massive growth at Goodwill. Between 2002 and 2004, the organization's revenue increased from $53.55 million to $65 million. When Miller started leading Portland's Goodwill in 1986, revenue was less than one-tenth of current levels.

Goodwill's board has said it bases Miller's pay package on Goodwill's performance.

Federal laws and regulations allow nonprofits to compensate their executives based on pay at similar nonprofit or for-profit companies.

Miller drew a 5.9 percent increase in compensation and benefits between 2003 and 2004, according to Goodwill's latest financial report.