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April 21, 2021

Executive Compensation at the National Fire Protection Association

by Anne Paddock

The National Fire Protection Association (NFPA) is a tax-exempt, non-profit 501 (c) (3) based in Quincy, MA that is known as the “codes and standards” organization to minimize risk and the effects of fire.

The NFPA generates about $80-$90 million annually and does not generally spend as much as they bring in which is how the organization has come to accumulate nearly $300 million in net assets.

In 2018, the NFPA reported total revenue of $82 million which primarily came from 4 sources:  sale of inventory ($41 million), training, meetings, and conferences ($16 million), royalties, gains, and investment income ($14 million), and membership dues ($11 million including $2 million from the government from three classes of members:  director, voting, and non-voting).

Expenses totaled $76 million (including $2 million in depreciation) with the four largest expenses reported to be: compensation ($37 million), office-related expenses ($15 million), fees for services ($13 million of which $2.4 million was for consult/artwork design and $8.4 was program and management expenses that were not detailed), and travel and conferences ($7 million).

The largest expense – $37 million in compensation – was shared among 397 employees, who received an average compensation of $93,000.  99 employees received more than $100,000 in compensation with the 11 most highly compensated reported to be:

  • $1,084,913:  Bruce Mullen, EVP
  • $  983,087:  James Pauley, President
  • $  372,623:  Sally Everett, VP (Asst Sec’y from 6/18)
  • $  354,194:  Kathleen Almand, VP
  • $  348,281:  Lorraine Carli, VP
  • $  337,577:  Julie Lynch, VP
  • $  325,076:  Keith Quackenbush, VP
  • $  323,321:  Christian Dubay, VP
  • $  319,959:  Charles Stravin, VP
  • $  286,495:  Donald Bliss, VP
  • $  240,699:  Guy Colonna, Director of Engineering

The 11 most highly compensated employees received $5 million in compensation.  7 of the 11 are male while 4 of the 11 are female.

NFPA pays for companion travel and reimburses certain relocation travel.

Bruce Mullen participated in the defined benefit SERP Retirement Plan in 2018 and accrued $227,400 in the plan. He became vested on 3/31/18 and the taxable benefit was $296,674.

James Pauley participated i the defined benefit SERP Retirement Plan in 2018 and accrued $161,633 in the plan.

87 independent contractors received more than $100,000 in compensation with the five highest reported to be:

  • $1,809,188:  Structuretone, of Boston, MA for building improvements
  • $1,755,042:  Forge Worldwide, of Boston, MA for marketing
  • $1,442,127:  UPS, of Philadelphia, PA for freight
  • $1,363,324:  LSC Communications, Inc, of Chicago, IL for printing
  • $1,134,034:  American Airlines, of Tulsa, OK for travel

To read the IRS Form 990 (2018), click here.

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