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August 15, 2021

Executive Compensation at the National Association of Manufacturers

by Anne Paddock

The National Association of Manufacturers (NAM) is a tax-exempt, non-profit advocacy group (trade association) representing more than 14,000 manufacturing companies. Based in Washington, DC, NAM is primarily engaged in lobbying for policies in all areas that affect labor and employment in manufacturing.

The governing body has 204 voting members (board members), 203 of whom are independent.  171 of the 204 (84%) board members are male while 32 of the 204 (16%) are female.

In the most general terms, NAM is a trade association that collects about $50 million annually.  They have not historically been an organization with a strong balance sheet, meaning NAM has not had a large endowment to rely on.

In 2013, NAM had $6 million in net assets which was reduced to $2 million in 2014 and then into a negative position since then. At the end of 2018, NAM had a negative $8 million in net assets, which appears to be because NAM has been spending more than they have been raising.

In 2018, NAM reported total revenue of $51 million, most of which came from 3 sources: member dues ($38 million), advocacy and litigation ($9 million), and sponsorship, programs and affiliation fees ($3 million).

Expenses totaled $52 million in 2018 with the two largest expenses reported to be compensation ($28 million) and fees for outside services ($11 million).

179 employees received $28 million in compensation which equates to an average compensation of nearly $157,000. However, only 68 employees received more than $100,000 in compensation with the 12 most highly compensated reported to be:

  • $3,642,910:  Jay Timmons, CEO
  • $  757,894:  Aric Newhouse, SVP, Policy and GR
  • $  667,011:  Jeff Pierce, SVP, Membership and SD
  • $  659,791:  Tod Boppell, COO
  • $  624,987:  Linda Kelly, Secretary
  • $  579,915:  Erin Streeter, SVP, Communications
  • $  445,451:  Keith Smith, SVP, External Relations
  • $  425,104:  Adria Brockman, VP, Memberships
  • $  398,672:  Ross Eisenberg, VP, ERP
  • $  391,325:  Linda Dempsey, VP, IEA
  • $  370,996:  Carolyn Lee, Executive Director, MI
  • $  344,800:  Paul Hartgen, VP, MBS

The 12 most highly compensated employees (representing less than 7% of total employees) received more than $9 million in compensation or 32% of total compensation 7 of the 12 (58%) are male while 5 of the 12 (42%) are female.

$500,000 was put into the 457 (F) retirement plan of Jay Timmons.

NAM paid for first class or charter travel. Specifically, the CEO is permitted to fly first class.

NAM paid for social or health club dues and/or initiation fees.  Specifically, the CEO is reimbursed for club dues, which are grossed up to cover the tax liability.

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

  • $1,670,666:  DCI Group AZ LLC, of Washington, DC for consulting
  • $1,200,000:  Compass Lexecon, of Boston, MA for consulting
  • $1,069,650:  DDC Public Affairs, of Washington, DC for consulting and lobbying
  • $  816,473:  FTI (SC) Consulting, Inc. of NY, NY for consulting
  • $  419,291:  Locust Street Group, of Washington, DC for consulting

$11 million was used to compensate outside service providers – primarily consultants and lobbyists.  As indicated above, more than $5 million was used for consulting services.

In conclusion, NAM spent $51 million in 2018 – $1 million more than the organization raised – which further deteriorated the organization’s net asset position to -$8 million – all while the CEO received compensation of $3.6 million and traveled first class on NAM’s account.

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

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