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.
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Yvonne: You may want to educate yourself on the Salvation Army who refuses to release financial information and provide transparency although they rely on the public for support. Please read the following:
Shame on the Salvation Army. Any public organization that receives public support should be transparent. And, that CEO (and numerous other employees who receive “free” housing and other perks)…well, its not free to anyone but the employees because taxpayers are supporting them. The Salvation Army owns massive amounts of real estate for which they do not pay real estate taxes on (so they don’t pay for schools, roads, etc for which they use) because they claim they are a church and have a religious exemption and also don’t have to file a Form 990 with the IRS.
So, yes it’s a crazy world we live in when a huge tax-exempt non-profit organization (actually hundreds of related organizations all under the umbrella of the Salvation Army) lives off people’s generosity, does not disclose financial information because they claim they have a religious exemption (I have yet to meet anyone who is a “salvation armian;” Catholic, Mormon, Methodist, Jewish, etc – yes, but not Salvation Armian, and has vast real estate holdings for which they do not pay real estate taxes to support the infrastructure they use. It’s shameful. I wouldn’t give them a dime.
If you want to, give give to the Salvation Army CEO hardly gets enough to live on except his housing is paid for. What a crazy world we live in!!
Wow. I would never give my money to these self serving assholes.
My hard earned is not going to pad this outfit
10 million for consulting?…whose buddy’s got that money?
makes me reconsider my red liquid donations.
That’s absolutely outrageous that Red Cross basically take volunteers blood for free, sell to hospital for huge profits, then pay their CEO $8 million per year to run the show. This self claimed charities are way too lucrative! Working in one is like finding a gold mine.