Executive Compensation at the American Red Cross (2019)

The American Red Cross (ARC) is one of the most recognized charities in the world. Based in Washington, DC, ARC works to “prevent and alleviate human suffering” by mobilizing employees and volunteers in emergencies and through the collection and sale of blood (ARC collects, tests, and distributes 40% of the nation’s blood to more than 2,500 hospitals).

ARC is governed by 15 voting members, 14 of whom are independent. The Form 990 (2018 for the year ending June 30, 2019) lists 17 board members (due to timing differences), of which 12 (71%) are male and 5 (29%) are female.

In 2019, ARC reported total revenue of $2.8 billion (compared to $3.6 billion the year before when contributions, gifts, and grants were significantly higher), most of which came from biomedical products and services ($1.7 billion) and contributions, gifts, and grants ($817 million). Expenses totaled $2.9 billion (including $72 million in depreciation) with the  five largest expenses being compensation ($1.4 billion), biomedical supplies and blood testing ($445 million), grants ($398 million), office-related expenses ($254 million), and fees for services ($235 million). Net assets were $1.4 billion at year-end.

19,363 employees received $1.4 billion in compensation, which equates to an average compensation of $72,300.

 1,464 employees received more than $100,000 in compensation with the 18 most highly compensated employees listed below:

• $709,164:  Gail McGovern, President and CEO
• $700,415:  Clifford Holtz, COO
• $651,238:  Shaun Gilmore, Chief Transformation Officer
• $642,142:  James C Hrouda, President, Biomedical Services
• $509,225:  Brian Rhoa, CFO
• $441,413:  John McMaster, President, PHSS
• $439,002:  Julio Delgado, Analyst V, Investments
• $439,921:  Paul Sullivan, SVP, Collections
• $425,892:  Don Herring, Chief Development Officer
• $410,134:  Jennifer Do, Technologist III, IRL
• $407,459:  Sherri Brown, President, Humanitarian Service
• $406,434:  Greg Williamson, Chief Investment Officer
• $397,884:  Ronnie Strickland, CIO
• $395,224:  Melissa Hurst, Chief HR Officer
• $382,536:  Neal Litvack, Chief Marketing Officer
• $268,499:  Harvey Johnson, President, Humanitarian Services
• $255,536:  David Meltzer, General Counsel and Chief International Officer
• $230,815:  Jennifer Hawkins, Corp Secretary and Chief of Staff

The 18 most highly compensated employees received $8 million in compensation.  13 of the 18 (72%) most highly compensated employees are male while 5 of the 18 (28%) are female.

320 independent contractors received more than $100,000 in compensation. The 5 most highly compensated were reported to be:

• $10.4 million:  Mindtree Limited, of Warren, NJ for IT consulting
• $10.4 million:  One and All, of Pasadena, CA for printing and mailing
• $ 6.9 million:  Servicemaster, of Memphis, TN for building services
• $ 6.3 million:  Adecco Employment Services, Inc., of Jacksonville, FL for staffing
• $ 6.3 million:  Whelan Security, of Charlotte, NC for security services

To read the IRS Form 990 (2018 for the year ending June 30, 2019), click here.