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Former USA Gymnastics CEO Received a $1 Million Payout—After a Huge Sex-Abuse Scandal

Written by: Maggie Mallon, Glamour Magazine

In March former USA Gymnastics CEO Steve Penny resigned from his post as the organization found itself embroiled in a massive sexual-abuse scandal. But the horrifying abuse allegations didn't stop him from getting a serious golden parachute. On Friday the Wall Street Journal reported that Penny received a $1 million payout following his resignation—a severance package meant to cover two years of compensation.

Penny had been at the helm of USAG since 2005 but faced pressure to resign following a series of reports alleging that the sport's governing body had failed to report sexual assault and abuse to authorities. Last year an investigation conducted by the Indianapolis Star revealed that approximately 54 coaches were accused of abusing gymnasts between 1996 and 2006. According to the Star's report, many of the athletes continued to experience abuse even after they reported it to USAG, and in a 2013 lawsuit filed against the organization, two former officials admitted that USA Gymnastics had, on numerous occasions, dismissed allegations that didn't come directly from a victim or a victim's family member. Further reporting from the Star revealed that over 368 gymnasts had alleged sexual abuse over the past two decades.

Additionally, USAG's team physician Larry Nassar is facing 28 criminal charges and seven lawsuits after 95 women and girls have come forward with allegations of sexual assault, according to a report from Newsweek. Beyond USAG, at least seven women raised concerns about Nassar to Michigan State University, where he was employed. Nassar has denied the allegations and pleaded not guilty to the charges, but both USAG and Michigan State have come under fire as many have questioned how thoroughly they investigated allegations against him.

Upon his resignation in March, Penny issued a statement saying, “My decision to step aside as C.E.O. is solely to support the best interests of USA Gymnastics at this time." USA Gymnastics told the Journal that salary information is confidential and that they are "moving forward" following Penny's departure from the organization.

In response to the allegations against USA Gymnastics, several members of Congress have brought forward legislation meant to protect young athletes from sexual abuse and require athletic bodies to report allegations to law enforcement. In late May the Protecting Young Victims from Sexual Abuse Act—a bipartisan piece of legislation brought forward by Rep. Lois Frankel (D–Fla.) and Rep. Susan Brooks (R–Ind.)—passed in the House with near unanimous support, and Senator Dianne Feinstein (D–Calif.) will now further the legislation in the Senate.

"These are Olympic hopefuls that have undergone this abuse for many decades," Brooks said last week. "Now these organizations must report to law enforcement and put better policies in place."

Frankel echoed the Indiana Congresswoman's remarks, saying, "You think about these young kids, they dream at an early age of standing on that Olympic podium.... Today we take a great step forward in protecting their innocence and having their dreams come true."