$200k salary CEO hired for Myrtle Beach taxpayer-funded nonprofit. Was he even interviewed?

The soon-to-be-hired CEO of an organization that manages an unknown amount of taxpayer dollars, but is at least in the millions, was seemingly hired through a fast-track process with preferential treatment.

Circumstances leading to Jason Greene’s imminent arrival as head of the Myrtle Beach Downtown Alliance with a $200,000 salary likely violated conflict of interest policies and nonprofit best practices, according to a Sun News review.

Greene, who is set to move from Habitat for Humanity of Horry County, was offered employment with an April 2 vote, and negotiations are still happening. The Sun News has been unable to confirm if Greene was ever interviewed by his new employer.

A conflict of interest can be real or perceived and happens with a person or organization that is involved with multiple interests and one interest could involve working against another.

“Over the past three years, I have worked closely with Jason and have been consistently impressed by his work ethic, personal community relationships, and leadership skills,” wrote new Chairman Dan Sine, in an April 6 press release announcing the hire.

Amy Barrett, Greene’s predecessor, was hired as the inaugural Downtown Alliance CEO job in 2021 following a national search. Barrett, who did not return a phone call seeking comment, submitted a resignation letter Feb. 20. Her last day of work was Tuesday.

Greene was recruited for the post by One Grand Strand, the Downtown Alliance’s parent organization.

There was no search for candidates, posts about the position, or even an interview for the high-paid leadership position.

Rick Cohen, chief operating officer for the National Council of Nonprofits, said nonprofits generally benefit when they interview for openings at the top - even with a preferred candidate in mind.

“You never know until you post that job,” he said. “It also helps bring into focus what the person being hired needs to do. It’s something where we’ve seen in a lot of instances a job description can be adjusted through the hiring process based on things you haven’t thought of before.”

Why should Myrtle Beach property owners care

Launched in 2021 as a public/private venture to boost downtown revitalization, the Alliance is responsible for generated downtown development and gets funding in part through a new special tax district anticipated to raise $14 million over the next decade.

Greene is expected to finalize a contract with Myrtle Beach Downtown Alliance in the coming days that will pay him $200,000 a year — a 157% pay bump from the $77,702 he earned at Habitat, according to its most recent 990 IRS filing.

The amount is also $40,000 more than what Barrett was being paid.

When asked about the increased pay, Sine and his executive committee provided a written response saying One Grand Strand confirmed with a consultant. “A $200,000 salary was well within the appropriate salary range paid by similar organizations in comparable downtowns. Further, testing the pay grades locally revealed that Matt Kennell, the CEO of the Columbia, SC, (downtown group) ... received a $208,000 base salary in 2020,” wrote the leadership group in an email.

Sine and other board members have cited the need for a quick turnaround, so no search or interviews were conducted before choosing their top leader. There were missteps along the way, including using a boilerplate offer letter that included the need for Greene to sign a non-disclosure agreement. When pointed out by the Sun News, Sine admitted the mistake was his and that clause would be removed.

There is also confusion among the downtown alliance board members about if Greene was interviewed for the job. When Myrtle Beach Mayor Brenda Bethune, a board member of the nonprofit, was asked if she has ever hired a CEO for one of her companies without interviewing them, she said “no comment,” and she did not believe the question was accurate because she believed Greene was interviewed.

The written statement from the current executive committee says One Grand Strand executive committee, a different organization, were the ones that searched for a new candidate, not the organization doing the hiring.

Bethune was in Columbia on business the day Greene was approved for an employment offer and did not vote on his hiring. With new faces atop the Alliance’s administrative and governing sides, Bethune said ongoing efforts to “reclaim” downtown won’t lose any momentum.

“Absolutely no one should be concerned about the future of downtown, because the city is in control of downtown,” she said. “We have a great partnership with the (Myrtle Beach Downtown Alliance), and that will continue. We feel very, very positive about the direction and Jason Greene, but it’s up to us to keep that ball rolling and moving forward.”

Sine said the Myrtle Beach Downtown Alliance plans to revamp its website to include updated financial information, meeting minutes and board representation.

“I think the biggest reason was the importance of getting somebody in that position that was qualified and a good fit quickly,” Sine said. “I think that the folks who had those discussions before my tenure ... they made that decision that Jason was a fantastic candidate if he was willing to consider the position.”

Again, Sine’s first meeting with the group was on March 14. Sine will run the organization he just joined as a “volunteer interim” CEO through April 30. Greene is slated to start May 1.

Why the quick leadership change to chairman and CEO at the Downtown Alliance? What’s this about a conflict and overlap?

A Sun News inquiry also shows overlap between the governing boards of both Habitat and the downtown alliance, which combined had assets pushing beyond $7.5 million in the most recent fiscal year, according to their most current IRS filings.

Sine, elected to chairman of the board at his first meeting, in a phone interview, gave the following reasons for the leadership changes.

“As I’m finishing my tenure at the Habitat board, I was looking for my next opportunity to serve the public,” Sine said. “... that opportunity was brought forth to me ... to be the chairperson was right up my alley. I love to run a meeting and the business and the component and the logistic side of empowering board members.“

He could not answer how much taxpayer funding the organization receives. He was clear that the transition of Greene was already in the works before he joined the board at the downtown alliance.

“By the way, congratulations on being the new chairperson, but we are also going to need to hire a new CEO,” Sine said. “I honestly was comforted when Jason’s name was thrown in the hat, and that was able to came to fruition just because he and I have worked so well together over the past few years.”

It is unusual for a new board member to become chairman in their first meeting for an established board.

“If the nonprofit has been around for awhile, generally, a board member would get a little bit of seasoning before moving into an officer or an executive role,” Cohen said.

The two independent nonprofits have overlap in governance.

Sine is the immediate-past president of Habitat for Humanity and on the executive committee and chairman of the board for the downtown alliance. Meagan Michal is also on the board of the downtown alliance and is an employee for Habitat for Humanity.

Michal was announced as the interim director of Habitat of Humanity within about 20 minutes of the downtown alliance announcing Greene’s promotion. Michal confirmed she voted as a board member to hire her boss into the new role.

In a text on April 11, she said, “If I’m finding that this perception (of a conflict of interest) compromises my ability ... then I will be recusing myself from any future decision regarding Jason’s employment at the (Myrtle Beach Downtown Alliance).”

The Myrtle Beach Downtown Alliance conflict of interest policy states that it should be used to “address any real, potential or apparent conflicts of interest that might, in fact or in appearance, call into question their duty of undivided loyalty to the Corporation.”

The Habitat for Humanity ethics covenants and code of conduct guidelines, states the representatives should “avoid or remove themselves from conflicts of interest,” and “speak up about any possible ethical violations.”

“If there’s a conflict of interest, it’s certainly a perception I guess, that’s out there,” Sine said, in a phone interview as a direct response to questions about the conflicts of interest. “But I think you’ve got a group of people at Habitat for Humanity of Horry County and the (Myrtle Beach Downtown Alliance) that care about their community. And if that crosses over, it’s an unfortunate thing. The people that I know that are involved in these organizations are not doing it with any ill will or agenda.”

Knowing the right people and the overlap seemed to help Greene land a job unavailable to other potential candidates.

Sine did believe there was a conflict of interest in making votes involving Greene or Michael in his leadership role at Habitat and recused himself from a vote and did not participate in a discussion about succession planning for Habitat. He did not see a similar conflict with his new role.

“A succession plan for the (executive director) position at (Habitat) was in place, and Jason had informed (Habitat) stakeholders,” Sine said in an email Monday. “Therefore, I felt comfortable participating in the vote to hire Jason as the next CEO of (Myrtle Beach Downtown Alliance).”

How does a nonprofit funded by taxpayers hire a CEO?

A 13-page job description created in 2021 says the Downtown Alliance should be led by somebody with “three to five years of experience in a leadership role at a downtown or district management organization” or have “comparable experience” at a similar nonprofit.

The original search for the position for CEO of the downtown alliance was conducted by HRS Executive Search Consultants, a firm that specializes in downtown and urban development. The search firm is listed as the premier search firm for this type of position and has worked with Cleveland, Tuscon, Indianapolis, San Antonio and Memphis, according to their website.

HRS President and CEO David P. Smith confirmed in a text message that his firm heard about Barrett’s departure “about a week ago” and the downtown alliance board did not contact them about doing another CEO search.

Habitat, on the other hand, plans to advertise the opening and solicit public input ahead of a national search for Greene’s permanent replacement.

Cohen, who has extensive nonprofit experience, said cross-representation on boards is not uncommon, but members with dual interests need to be careful about running into conflicts.

Greene’s hiring process fell well outside of practices used by other local entities over the past several years, The Sun News found.

1. In 2019, Steve Gosnell was tapped to run Horry County’s day-to-day operations - besting an initial field of 45 candidates as part of a national search that included listings on job boards and the county’s website. He makes just under $215,000.
2. Myrtle Beach city manager Jonathan “Fox” Simons was hired in 2021. According to previous Sun News reporting, he was picked from an initial pool of 66 applicants that eventually was narrowed to 11. He makes $250,000 annually after picking up a $50,000 raise and contract extension last summer. Simons is also a downtown alliance board member.
3. Myrtle Beach Area Chamber of Commerce president and CEO Karen Riordan was hired in 2018 after a 14-member search committee was formed. Nearly 300 people applied for the job - a figure eventually weaned to 15 before six in-person interviews were held. Riordan also sits on the downtown alliance board.

“Somebody moving from one job to another is inevitable, and people knowing other people in a particular line of work is also inevitable,” Cohen said. “It’s not to say that conflicts of interest should never occur ... what generally becomes an issue is whether that conflict is disclosed, and whether that conflict is dealt with within that policy.”

Editor’s note: This story was updated because it is unclear if Jason Greene served as a board member for One Grand Strand. (Updated April 12 at 7:05 P.M.)

This story was originally published April 12, 2023 at 5:00 AM.