2012-12-05T10:00:12-06:00 2012-06-30 CROWE HORWATH LLP 70 West Madison Street Suite 700 Chicago IL 606024903 990 2011-07-01 237013253 LAKE FOREST GRADUATE SCHOOL OF MANAGEMENT LAKE 8472345005 1905 W Field Court Lake Forest IL 60045 JOHN N POPOLI 2012-12-05 true John Woodhull P01305268 3128997000 2011 2016-02-24 21:20:13Z JOHN N POPOLI 1905 W Field Court Lake Forest IL 60045 13192365 false X WWW.LAKEFORESTMBA.EDU X 1946 IL LAKE FOREST GRADUATE SCHOOL OF MANAGEMENT (LFGSM) IS A PRIVATE, NONPROFIT INSTITUTION OF HIGHER EDUCATION DEDICATED TO IMPROVING THE ABILITY OF WORKING PROFESSIONALS AND ORGANIZATIONS TO MAKE SIGNIFICANT BUSINESS CONTRIBUTIONS THAT LEAD TO OUTSTANDING AND MEASURABLE RESULTS. 19 18 191 250 0 0 478077 715063 11472806 12222924 174051 161324 37688 69456 12162622 13168767 234240 988690 0 0 6906042 6777966 0 0 176520 4767422 5506396 11907704 13273052 254918 -104285 18938482 19251497 1467473 1834017 17471009 17417480 LAKE FOREST GRADUATE SCHOOL OF MANAGEMENT (LFGSM) IS A PRIVATE, NONPROFIT INSTITUTION OF HIGHER EDUCATION DEDICATED TO IMPROVING THE ABILITY OF WORKING PROFESSIONALS AND ORGANIZATIONS TO MAKE SIGNIFICANT BUSINESS CONTRIBUTIONS THAT LEAD TO OUTSTANDING AND MEASURABLE RESULTS. LFGSM GRANTS MBA DEGREES AND SPECIALIZES IN MANAGEMENT DEVELOPMENT EDUCATIONAL PROGRAMS FOR MANAGERS AND EXECUTIVES OF AREA BUSINESSES AND OTHER ORGANIZATIONS. THE MAJORITY OF LFGSM'S STUDENTS ENROLLED ARE FROM CHICAGO, ILLINOIS AND ITS SURROUNDING SUBURBS. false false 7811543 988690 10986950 LAKE FOREST GRADUATE SCHOOL OF MANAGEMENT COMBINES TRADITIONAL AND LEADING-EDGE ACADEMICS WITH A PRACTITIONER FACULTY THAT PROVIDES A DYNAMIC CONNECTION WITH THE REAL WORLD OF BUSINESS. THIS DISTINCTIVE APPROACH RESPONDS DIRECTLY TO THE RESULTS-ORIENTED DEMANDS OF TODAY'S BUSINESS ENVIRONMENT WHILE SATISFYING ACADEMIC RIGOR. OUR FACULTY MEMBERS OFFER DIVERSE PERSPECTIVES AND REPRESENT A WIDE ARRAY OF ORGANIZATIONS, INDUSTRIES, AND FUNCTIONS. THEY BLEND SOLID BUSINESS THEORY WITH PRACTICAL EXPERIENCE, SO STUDENTS RECEIVE A HANDS-ON EDUCATION THAT IS UNMATCHED. ALL OF OUR FACULTY MEMBERS HAVE EXTENSIVE PRACTICAL EXPERIENCE IN THE SUBJECT AREAS THEY TEACH. BUILDING ON THE SKILLS STUDENTS BRING TO THE PROGRAM, OUR COURSES SHARPEN THEIR ANALYTICAL ABILITIES BY COMBINING COURSE WORK WITH DAY-TO-DAY PROFESSIONAL EXPERIENCES. OUR GENERAL MBA PROGRAM OFFERS A BROAD KNOWLEDGE BASE IN EVERY AREA NEEDED FOR SUCCESS IN TODAY'S BUSINESS WORLD. INTERACTIVE AND PERSONAL, OUR FACULTY MEMBERS INCORPORATE A WIDE RANGE OF TEACHING METHODOLOGIES, INCLUDING FACILITATED DISCUSSION, ISSUES AND RESPONSIBILITIES FACING MANAGEMENT TODAY. 771596 0 1242977 LAKE FOREST CORPORATE EDUCATION (LFCE) IS A PART OF LAKE FOREST GRADUATE SCHOOL WHICH PROVIDES INTERRELATED FORMAL CLASSROOM BUSINESS EDUCATION INSTRUCTION IN THE FORM OF CERTIFICATE PROGRAMS AND SHORT-TERM WORKSHOPS IN SUBJECTS SUCH AS STRATEGIC EXECUTION, FINANCE, COMMUNICATION, LEADERSHIP DEVELOPMENT, NEGOTIATIONS, PROJECT MANAGEMENT, MANAGING CHANGE, AND SALES. LFCE PROVIDES THESE PROGRAMS TO CORPORATIONS, PRIMARILY IN THE CHICAGO AREA. LFCE DEVELOPS CURRICULA, WHICH WHEN DELIVERED THROUGH FORMAL CLASSROOM INSTRUCTION ENABLE EMPLOYEES OF THOSE ORGANIZATIONS TO BROADEN THEIR BUSINESS KNOWLEDGE, AND TO HELP THEM MOVE FROM INDIVIDUAL CONTRIBUTOR TO ORGANIZATIONAL CONTRIBUTORS. THIS IS ACCOMPLISHED BY TAILORING CURRICULA, CONTENT, AND PROGRAMS TO MEET SPECIFIC NEEDS OF THE EMPLOYEES OF THE CORPORATIONS. 8583139 true true false false false false false false true true false false false false true true false true false true false false false true false false false true true false false false false false false true false false false false false false false false false false false true 35 0 true 191 true false false false false false true true false false false false X 19 18 false false true false false false false true true false false true true true true true true true true false X MALCOLM DOUGLAS 8475745166 1905 W FIELD COURT LAKE FOREST IL 60045 X DAVID MCDONOUGH 1.00 X X 0 0 0 JOAN BAILAR 1.00 X X 395 0 0 KENNETH HOFFMAN 1.00 X X 0 0 0 ANTOINETTE GAWIN 1.00 X 0 0 0 ARVIND SINGH 1.00 X 0 0 0 B MONTGOMERY EDSON 1.00 X 26177 0 0 B RICHARD SURKAMER 1.00 X 0 0 0 GARY CHAN 1.00 X 0 0 0 HEATHER LOWE 1.00 X 0 0 0 JODY BERNS 1.00 X 0 0 0 JOHN PAPPAS 1.00 X 18890 0 0 PATRICIA COFFEY 1.00 X 0 0 0 RICK ADAMS 1.00 X 5440 0 0 SAMUEL BRILLIANT 1.00 X 0 0 0 SCOTT SHAFFER 1.00 X 0 0 0 STEPHEN SCHUTT 1.00 X 0 0 0 WARREN LINDLEY 1.00 X 0 0 0 WILLIAM COLBOURNE 1.00 X 0 0 0 CHRIS MULTHAUF 38.00 X 184925 0 23499 CURTIS WANG 38.00 X 174037 0 22756 GREG KOZAK 38.00 X 143978 0 22393 JOHN POPOLI 38.00 X 262402 0 26859 KATHY LECK 38.00 X 193182 0 39739 MALCOLM DOUGLAS 38.00 X 170328 0 33033 STASIA ZWISLER 38.00 X 127893 0 22662 GAIL KRACHTUS 38.00 X 105543 0 15824 MARTHA WATT 38.00 X 110677 0 29355 PATRICIA MARSHALL 38.00 X 107540 0 0 1631407 0 236120 9 true true false GREENWOOD & HALL 1936 E DEERE AVE SUITE 120 SANTA ANA CA 92705 RECRUITMENT 578457 JENZABAR PO BOX 845939 BOSTON MA 02284 SOFTWARE 460328 WORLDSTRIDES 218 W WATER ST SUITE 400 CHARLOTTESVILLE VA 22902 FOREIGN STUDY PRACTICUM 286433 MICHAEL WALTERS ADVERTISING 444 N WABASH STREET CHICAGO IL 60611 ADVERTISING 237987 MSTONER INC 6677 DELMAR BLVD SUITE 310 ST LOUIS MO 63130 WEB DESIGN 194494 9 0 0 61122 0 518455 135486 715063 MBA PROGRAM TUITION 900099 10890093 10890093 NON-DEGREE BUSINESS PROGRAMS 900099 1242977 1242977 OTHER MBA PROGRAM FEES 900099 86763 86763 DEVELOPMENT PROGRAMS 900099 3091 3091 0 0 0 0 12222924 161324 161324 0 0 76771 76771 0 76771 76771 0 0 0 9280 61122 23598 -14318 -14318 0 0 LOGO MERCHANDISE 900098 9 9 MISCELLANEOUS REVENUE 900099 6994 6994 0 0 0 0 7003 13168767 12229927 0 223777 0 988690 988690 0 0 1303474 378107 861421 63946 0 4320316 3190314 1057066 72936 288574 147514 131667 9393 501772 256496 228941 16335 363830 223388 131089 9353 0 27947 1357 26590 64300 64300 0 0 0 0 959150 959150 117557 45867 71690 111835 34733 77102 0 559513 492483 67030 112823 15709 97010 104 0 42715 14661 28054 0 0 439615 294542 145073 58409 26836 31573 PROGRAM SERVICES 1104090 1104090 STUDENT SERVICES AND INSTITUTIONAL SUPPORT 1616777 213787 1398537 4453 OPERATIONS AND MAINTENANCE 291665 195415 96250 0 0 0 0 13273052 8583139 4513393 176520 0 2607732 2067505 253162 253187 24990 539281 847608 1183692 0 0 0 0 118617 251624 13252404 3673320 9921304 9579084 5165069 5377124 0 0 0 0 0 0 18938482 19251497 1040274 1214197 0 427199 619820 0 0 1467473 1834017 16764967 16573077 506042 644403 200000 200000 17471009 17417480 18938482 19251497 X -104285 50756 X false true true X true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 267820 123429 9560 381689 262674 350 17002 12206 267820 110094 150000 9955 7375 262674 108030 7474 5410 110094 0.00000 0.52400 0.47600 false false 2253006 2253006 8269963 2153631 6116332 708244 101944 606300 1756371 1417745 338626 264820 264820 9579084 0 0 13168767 13273052 -104285 50756 0 50756 -53529 12274668 50756 20237 -965092 -894099 13168767 0 0 13168767 12328197 20237 0 20237 12307960 965092 965092 13273052 Intended uses of endowment funds Schedule D, Part V, Line 4 THE YOMINE ENDOWMENT FUND AND THE KAULE ENDOWMENT FUND ARE USED TO PROVIDE SCHOLARSHIPS TO MBA STUDENTS. FIN 48 (ASC 740) footnote Schedule D, Part X, Line 2 THE SCHOOL HAS RECEIVED A DETERMINATION LETTER FROM THE INTERNAL REVENUE SERVICE INDICATING THAT IT IS A NOT-FOR-PROFIT ENTITY AS DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE ("IRC") AND IS EXEMPT FROM FEDERAL INCOME TAXES ON RELATED INCOME PURSUANT TO SECTION 501(A) OF THE IRC, EXCEPT FOR TAXES PERTAINING TO UNRELATED BUSINESS INCOME. THE SCHOOL FOLLOWS GUIDANCE WITH RESPECT TO ACCOUNTING FOR UNCERTAIN TAX POSITIONS. NO PROVISION HAS BEEN MADE FOR INCOME TAXES IN THE ACCOMPANYING FINANCIAL STATEMENTS, AS THE SCHOOL HAS HAD NO SIGNIFICANT UNRELATED BUSINESS INCOME. IF THE SCHOOL INCURS INTEREST AND PENALTIES, THE SCHOOL RECOGNIZES INTEREST AND PENALTIES RELATED TO UNRECOGNIZED TAX BENEFITS IN INTEREST AND INCOME TAX EXPENSE, RESPECTIVELY. THE SCHOOL HAS NO AMOUNTS ACCRUED FOR INTEREST OR PENALTIES AS OF JUNE 30, 2012 OR 2011. THE SCHOOL HAS NOT BEEN EXAMINED BY ANY TAX JURISDICTION. THE SCHOOL HAS NO ONGOING FEDERAL, STATE OR LOCAL TAX AUDITS, HOWEVER, THE SCHOOL'S TAX RETURNS FOR 2009 AND SUBSEQUENT YEARS ARE OPEN TO EXAMINATION. THE SCHOOL DOES NOT EXPECT THE TOTAL AMOUNT OF UNRECOGNIZED TAX BENEFITS TO SIGNIFICANTLY CHANGE IN THE NEXT 12 MONTHS. true true true true true true true false false false false false false false true false true Financial aid or assistance from a governmental agency Schedule E, Line 6a LAKE FOREST GRADUATE SCHOOL OF MANAGEMENT(LFGSM) RECEIVES THE FOLLOWING FINANCIAL AID AND/OR ASSISTANCE FROM A GOVERNMENTAL AGENCY: SCHOLARSHIPS, LOANS, VETERANS BENEFITS, AND SUPPLEMENTAL INFORMATION RESOURCES. ALL LFGSM STUDENTS ARE ELIGIBLE TO APPLY FOR FEDERAL STAFFORD LOANS, REGARDLESS OF THEIR INCOME. IN ADDITION TO STAFFORD LOANS, LFGSM STUDENTS MAY BE ELIGIBLE TO APPLY FOR THE SUPPLEMENTAL FINANCIAL RESOURCES INCLUDING SCHOLARSHIPS, VETERANS BENEFITS, AND PRIVATE LOANS. LAKE FOREST GRADUATE SCHOOL OF MANAGEMENT'S DEPARTMENT OF EDUCATION TITLE IV SCHOOL CODE IS G23192. SOUTH AMERICA 0 0 PROGRAM SERVICES STUDY ABROAD/TRAVEL PROGRAM - SEE PART V 105260 EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICES STUDY ABROAD/TRAVEL PROGRAM - SEE PART V 101481 EUROPE (INCLUDING ICELAND AND GREENLAND) 0 0 PROGRAM SERVICES STUDY ABROAD/TRAVEL PROGRAM - SEE PART V 102021 0 0 308762 false false false false false false ACTIVITIES PER REGION SCHEDULE F, PART I THE FOLLOWING STUDY ABROAD/TRAVEL PROGRAMS ARE OFFERED BY LFGSM: 5841 GLOBAL PRACTICUM: ASIA THIS COURSE OFFERS STUDENTS AN OPPORTUNITY TO FOCUS ON THE ASIAN BUSINESS ENVIRONMENT WITHIN AN INNOVATIVE AND FLEXIBLE FRAMEWORK THAT COMBINES TRADITIONAL CLASSROOM-BASED LEARNING WITH STRUCTURED, RIGOROUS IN-COUNTRY EXPERIENTIAL LEARNING. FOCUSING ON EMERGING MARKETS IN TERMS OF DEVELOPMENT, ECONOMY, GROWTH, AND PHILOSOPHIES IN A MULTI-CULTURAL SETTING, THE CHALLENGES AND OPPORTUNITIES OF THESE DYNAMIC MARKETS ARE ADDRESSED. THE PRAGMATIC ASPECTS OF DOING BUSINESS ABROAD, SUCH AS CULTURAL DIFFERENCES, RESOURCE AVAILABILITY, LEGAL AND ECONOMIC FRAMEWORK, TECHNOLOGY, AND MARKETING ISSUES ARE EXPLORED THROUGH CLASSROOM DISCUSSION, IN-COUNTRY COMPANY AND GOVERNMENT SITE VISITS, LECTURES FROM ASIAN EDUCATORS AND BUSINESS LEADERS, AND CONSULTING PROJECT CLIENT INTERACTION. EFFECTIVE COMMUNICATION AND ETHICAL DECISION MAKING UNDER THE UMBRELLA OF THE GLOBAL CHALLENGE ARE ADDRESSED. 5840 GLOBAL PRACTICUM: EUROPE THIS COURSE OFFERS STUDENTS AN OPPORTUNITY TO FOCUS ON THE EUROPEAN BUSINESS ENVIRONMENT WITHIN AN INNOVATIVE AND FLEXIBLE FRAMEWORK THAT COMBINES TRADITIONAL CLASSROOM-BASED LEARNING WITH STRUCTURED, RIGOROUS IN-COUNTRY EXPERIENTIAL LEARNING. THE PRAGMATIC ASPECTS OF DOING BUSINESS ABROAD, SUCH AS CULTURAL DIFFERENCES, RESOURCE AVAILABILITY, LEGAL AND ECONOMIC FRAMEWORK, TECHNOLOGY, AND MARKETING ISSUES, ARE EXPLORED THROUGH CLASSROOM DISCUSSION, IN-COUNTRY COMPANY AND GOVERNMENT SITE VISITS, LECTURES FROM EUROPEAN EDUCATORS AND BUSINESS LEADERS, AND CONSULTING PROJECT CLIENT INTERACTION. EFFECTIVE COMMUNICATION AND ETHICAL DECISION MAKING UNDER THE UMBRELLA OF THE GLOBAL CHALLENGE ARE ADDRESSED. 5842 GLOBAL PRACTICUM: LATIN AMERICA THIS COURSE OFFERS STUDENTS AN OPPORTUNITY TO FOCUS ON THE LATIN AMERICAN AND U.S. HISPANIC BUSINESS ENVIRONMENT WITHIN AN INNOVATIVE AND FLEXIBLE FRAMEWORK THAT COMBINES TRADITIONAL CLASSROOM-BASED LEARNING WITH STRUCTURED, RIGOROUS IN-COUNTRY EXPERIENTIAL LEARNING. THE PRAGMATIC ASPECTS OF DOING BUSINESS ABROAD, SUCH AS CULTURAL DIFFERENCES, RESOURCE AVAILABILITY, LEGAL AND ECONOMIC FRAMEWORK, TECHNOLOGY, AND MARKETING ISSUES, ARE EXPLORED THROUGH CLASSROOM DISCUSSION, IN-COUNTRY COMPANY AND GOVERNMENT SITE VISITS, LECTURES FROM LATIN AMERICAN EDUCATORS AND BUSINESS LEADERS, AND CONSULTING PROJECT CLIENT INTERACTION. EFFECTIVE COMMUNICATION AND ETHICAL DECISION MAKING UNDER THE UMBRELLA OF THE GLOBAL CHALLENGE ARE ADDRESSED. Method used to account for expenditures on organization's financial statements Schedule F, Part I, Line 3 SOUTH AMERICA: ACCRUAL EAST ASIA AND THE PACIFIC: ACCRUAL EUROPE (INCLUDING ICELAND AND GREENLAND): ACCRUAL GOLF OUTING 70402 61122 9280 0 0 23598 0 0 0 0 0 70402 61122 9280 0 0 23598 0 0 0 23598 -14318 true SCHOLARSHIPS 844 988690 0 FMV Procedures for monitoring use of grant funds Schedule I, Part I, Line 2 ALL GRANTS ARE IN THE FORM OF SCHOLARSHIPS AND ARE APPLIED TOWARD THE COST OF TUITION ONLY. X X X X X X false false false false false false false false false MALCOLM DOUGLAS 159660 0 10254 0 414 0 16661 0 16372 0 203361 0 0 0 GREG KOZAK 134972 0 9006 0 0 0 7077 0 15316 0 166371 0 0 0 KATHY LECK 178575 0 12321 0 2286 0 21679 0 18060 0 232921 0 0 0 CHRIS MULTHAUF 168594 0 16331 0 0 0 10789 0 12710 0 208424 0 0 0 JOHN POPOLI 222404 0 38810 0 1188 0 19705 0 7154 0 289261 0 0 0 CURTIS WANG 171983 0 2054 0 0 0 5630 0 17126 0 196793 0 0 0 STASIA ZWISLER 119936 0 7716 0 241 0 6290 0 16372 0 150555 0 0 0 BONUS COMPENSATION SCHEDULE J, PART II, COLUMN (B)(II) THE PURPOSE OF THE LAKE FOREST GRADUATE SCHOOL OF MANAGEMENT'S (LFGSM) MANAGEMENT INCENTIVE PLAN (MIP), IN KEEPING WITH THE MISSION OF THE SCHOOL, IS TO PROVIDE AN INCENTIVE TO CERTAIN EMPLOYEES WHOSE RESPONSIBILITY AND ACCOMPLISHMENTS DIRECTLY IMPACT THE SCHOOL'S ACHIEVEMENT OF ITS GOALS. THE MIP IS ONE COMPONENT OF LFGSM'S MANAGEMENT COMPENSATION PROGRAM. THE MIP RESTS ON THREE PRINCIPLES: * RECOGNIZE CONTRIBUTIONS MADE BY KEY MANAGEMENT STAFF ABOVE AND BEYOND NORMAL JOB EXPECTATIONS; * REWARD ACHIEVEMENT OF GOALS THAT ENHANCE THE VISION, PHILOSOPHY, AND VIABILITY OF LFGSM; AND * PROVIDE A MECHANISM TO ATTRACT AND RETAIN TOP QUALITY MANAGEMENT STAFF. BARBARA WANG SPOUSE OF CURTIS WANG, FORMER VP OF MARKETING & ADMISSIONS 10259 INDEPENDENT CONTRACTOR ARRANGEMENT false Significant changes to organizational documents Form 990, Part VI, Section A, Line 4 THE BYLAWS WERE AMENDED TO REFLECT A CHANGE IN THE NUMBER OF VOTING BOARD MEMBERS TO NORMALLY BE 18 AND 25 RESPECTIVELY. PREVIOULSY TO THIS CHANGE THE COMPOSITION OF THE BOARD HAD TO BE NORMALLY 25 AND 30 MEMBERS. Review of form 990 by governing body Form 990, Part VI, Section B, Line 11b THE FORM 990 IS REVIEWED BY MEMBERS OF THE FINANCE AND AUDIT COMMITTEE BEFORE IT IS FILED. AT THE TIME OF THIS REVIEW OUR PROFESSIONAL TAX PREPARER GUIDES THE COMMITTEE THROUGH EACH SECTION OF THE FORM AND ANSWERS QUESTIONS THAT THE COMMITTEE MAY HAVE. A FINAL COPY IS PROVIDED TO ALL BOARD MEMBERS AFTER THE RETURN IS FILED WITH THE IRS. THE FINANCE AND AUDIT COMMITTEE IS MADE UP OF MEMBERS, ALL OF WHOM HAVE A FINANCIAL BACKGROUND, AND CAN UNDERSTAND AND CAN INTERPRET FINANCIAL STATEMENTS. Conflict of interest policy Form 990, Part VI, Section B, Line 12c ALL SITTING BOARD MEMBERS ARE REQUIRED ANNUALLY TO SIGN A CONFLICT OF INTEREST STATEMENT WHICH IS REVIEWED BY THE PRESIDENT. BOARD MEMBERS ARE REQUESTED TO COMPLETE 11 QUESTIONS THAT COVER VARIOUS POSSIBLE CONFLICTS OF INTEREST, INCLUDING THOSE REQUIRED TO BE DISCLOSED IN THE FORM 990. THIS PROCESS IS FACILITATED BY THE SCHOOL'S PROFESSIONAL TAX PREPARERS. ALL DISCLOSED CONFLICTS ARE REVIEWED BY MANAGEMENT AND ITS PROFESSIONAL TAX PREPARERS TO ENSURE AN APPROPRIATE RESPONSE ON THE FORM 990. AS A CONDITION OF HIRE, AND ANNUALLY THEREAFTER, ALL FULL-TIME AND PART-TIME EMPLOYEES ARE REQUIRED TO READ AND SIGN A CONFIDENTIALITY & CONFLICT OF INTEREST AGREEMENT. IF A CONFLICT OF INTEREST IS IDENTIFIED, THE V.P. - HR, V.P. - FINANCE, AND ALL OTHER PARTIES INVOLVED WILL DISCUSS THE ISSUE AND WILL: A. DOCUMENT THE CONTROLS THAT WILL BE FOLLOWED TO ACHIEVE COMPLIANCE, OR B. TERMINATE THE ARRANGEMENT IF SUFFICIENT CONTROLS CANNOT BE PUT INTO PLACE TO ACHIEVE COMPLIANCE. THE SIGNED AGREEMENT WILL BE PLACED IN THE EMPLOYEE'S PERSONNEL FILE. EMPLOYEES WHO IMPROPERLY USE OR DISCLOSE CONFIDENTIAL BUSINESS INFORMATION OR WHO FAIL TO DISCLOSE A CONFLICT OF INTEREST FROM WHICH HE/SHE OR A MEMBER OF HIS/HER FAMILY AS DEFINED ABOVE COULD GAIN SUBSTANTIAL BENEFIT WILL BE SUBJECT TO CORRECTIVE ACTION, UP TO AND INCLUDING IMMEDIATE TERMINATION OF EMPLOYMENT, EVEN IF THEY DO NOT ACTUALLY BENEFIT FROM DISCLOSURE OF THE INFORMATION OR LACK OF DISCLOSURE OF A CONFLICT OF INTEREST. Process used to establish compensation of top management official Form 990, Part VI, Section B, Line 15a LAKE FOREST GRADUATE SCHOOL OF MANAGEMENT'S (LFGSM) COMPENSATION AND HUMAN RESOURCES COMMITTEE OF THE BOARD OF DIRECTORS REQUESTS AN EXTERNAL INDEPENDENT REVIEW OF COMPENSATION AND BENEFITS PROVIDED TO THE SCHOOLS "INTERESTED PERSONS" (DISQUALIFIED INDIVIDUALS) TO ASSIST THE COMMITTEE IN ITS ASSESSMENT OF THE REASONABLENESS OF THEIR COMPENSATION COMPARED TO MARKET DATA ASSEMBLED BY AN INDEPENDENT THIRD PARTY. THE INDEPENDENT THIRD PARTY'S PROCESSES FOR COLLECTING AND ASSEMBLING MARKET DATA IS CONSISTENT WITH THE REBUTTABLE PRESUMPTION CHECKLIST USED BY THE INTERNAL REVENUE SERVICE IN CONDUCTING COMPENSATION REVIEWS AS WELL AS CONTEMPORARY COMPENSATION PRACTICES. ALL MARKET DATA ARE ASSEMBLED FROM REPUTABLE, COMMERCIALLY-AVAILABLE SURVEYS, AS WELL AS PEER REVIEW FROM IRS FORM 990 SUBMISSIONS. THIS REPORT PRESENTS AN OVERVIEW OF THE TOTAL CASH AND BENEFITS PROVIDED TO THE LEADERSHIP STAFF OF COMPARABLE NOT-FOR-PROFIT COLLEGES AND UNIVERSITIES, OTHER NON-PROFIT ORGANIZATIONS, HEALTHCARE ORGANIZATIONS, AND SIMILAR FOR-PROFIT ORGANIZATIONS. THE COMPARABILITY OF MULTIPLE SURVEY SOURCES FOLLOWS THE EXECUTIVE COMPENSATION PHILOSOPHY ADOPTED BY THE LFGSM BOARD IN 2003 AND REVISED IN 2004, 2009, 2010, AND 2011. THIS WIDER RANGE OF ORGANIZATIONS BETTER REFLECTS WHERE LFGSM IS MOST LIKELY TO RECRUIT FROM OR LOSE ITS SENIOR TALENT TO. THE PEER GROUP TO ESTABLISH COMPETITIVE COMPENSATION MARKET DATA FOR EXECUTIVE POSITIONS INCLUDES ORGANIZATIONS SIMILAR IN SIZE AND SCOPE TO LFGSM AND NOT FOCUSED ON MULTIPLE PEER SECTORS WITH DATA CUTS OF ORGANIZATIONS ROUGHLY THE SIZE OF LFGSM. THE METHODOLOGY OF THE STUDY IS DESCRIBED FOLLOWING THE OVERVIEW SECTION. THE MARKET ANALYSIS SECTION PRESENTS THE MARKET COMPARISON INFORMATION FOR BASE AND ACTUAL CASH COMPENSATION RECEIVED BY THE EIGHT INCUMBENT MANAGEMENT BOARD MEMBERS. THE REVIEW INCLUDES COMPARISONS TO THE MARKET'S 50TH PERCENTILE FOR BOTH BASE AND TOTAL COMPENSATION USING THE SMALLEST SIZE (APPROXIMATING LFGSM) AND ONE DATA SIZE LARGER. THE BENEFIT ANALYSIS SECTION PRESENTS AN ANALYSIS OF THE BENEFITS AND PREQUISITES RECEIVED BY THE LFGSM MANAGEMENT BOARD. THE REPORT CONCLUDES WITH THE RECOMMENDATIONS SECTION. THE COMPARISON OF TOTAL COMPENSATION IS FOR THE EXECUTIVE STAFF (7) WHO ARE ACTIVELY EMPLOYED BY LFGSM AS OF MARCH 2010. THE SALARY SURVEYS USED OBTAIN DATA FROM NOT-FOR-PROFIT EDUCATIONAL ORGANIZATIONS AND APPLICABLE NON-PROFIT AND FOR-PROFIT SERVICE INDUSTRIES. DATA IS EXTRACTED FROM BONUS ELIGIBLE INCUMBENTS. THE EXECUTIVE POSITIONS ARE MARKET MATCHED USING THE FOLLOWING CRITERIA TO BE CONSISTENT WITH THE REBUTTABLE PRESUMPTION CHECKLIST OF THE IRS. DATA IS COLLECTED FROM REPUTABLE, COMMERCIALLY AVAILABLE MARKET DATA. DATA IS COLLECTED FROM ORGANIZATIONS SIMILAR IN REVENUE AND NUMBER OF EMPLOYEES TO LFGSMOR THE NEXT LARGEST "SIZE" IN THE SURVEY DATA. DATA IS GATHERED FROM THE ENTIRE U.S., AS THESE POSITIONS WOULD BE RECRUITED FROM A NATIONAL POOL OF APPLICANTS. DATA WAS INDEXED TO THE CHICAGO AREA TO BETTER REFLECT THE WAGE AND SALARY RATES FOR THE AREA. MARKET MATCHES ARE DETERMINED BY JOB RESPONSIBILITY, NOT JOB TITLE ALONE. SEVERAL EXECUTIVE STAFF MEMBERS HAVE DIVERSE RESPONSIBILITIES. IN THESE CASES THE DATA MAY BE BLENDED TO REFLECT THE ADDED ACCOUNTABILITIES. THIS PROCESS WAS LAST UNDERTAKEN IN MARCH 2011 AND IS PERFORMED EVERY 3 YEARS. THE NEXT PROJECTED YEAR THE PROCESS WILL BE UNDERTAKEN IS MARCH 2014. THE POSITIONS FOR WHICH THE PROCESS WERE USED WERE THE PRESIDENT AND CEO, VP-EDUCATIONAL PROGRAMS AND SERVICES,VP-R & D AND INNOVATION, EVP MARKETING, ADMISSIONS, AND CORPORATE SALES, VP HR & FUNDRAISING, VP INFORMATION TECHNOLOGY, AND VP-FINANCE & CFO. Process used to establish compensation of other officers/key employees Form 990, Part VI, Section B, Line 15b NARRATIVE WAS COMBINED WITH LINE 15A NARRATIVE; SEE ABOVE RESPONSE. Governing documents, conflict of interest policy and financial statements available to the public Form 990, Part VI, Section C, Line 19 FINANCIAL STATEMENTS, GOVERNING DOCUMENTS, AND CONFLICT OF INTEREST POLICIES ARE NOT REQUIRED DISCLOSURES PURSUANT TO INTERNAL REVENUE CODE (IRC) SECTION 6104. THESE DOCUMENTS ARE NOT AVAILABLE TO THE PUBLIC AT THIS TIME. COMPENSATION PAID TO OFFICERS, DIRECTORS, KEY EMPLOYEES, ETC FORM 990, PART VII, SECTION A, LINE 1A, COLUMN (A) COMPENSATION PAID TO BOARD MEMBERS IS PROVIDED IN EXCHANGE FOR SERVICES AS FACULTY MEMBERS. THESE PERSONS ARE NOT COMPENSATED IN THEIR POSITION AS BOARD MEMBERS. Other changes in net assets or fund balances Form 990, Part XI, Line 5 NET UNREALIZED GAINS (LOSSES) ON INVESTMENTS - 50756;