Executive Compensation at the Federation of American Hospitals (2019)

The Federation of American Hospitals  – a tax-exempt, non-profit 501 (c) (6) – is a trade association for tax-paying hospitals in the US. Based in Washington, DC with a staff of 23, the Federation of American Hospitals (FAH) is a very small non-profit that raises about $15 million annually but compensates its employees very well, including the President (Charles Kahn III who has been President since 2001) who received more than $2.3 million in 2019.

There are 9 independent voting members (directors) of the governing body (board of directors); all of whom are male.

In 2019, FAH reported total revenue of $15.5 million (compared to $14.9 million in 2018) most of which ($13 million) came from dues.

Expenses totaled $15.8 million in 2019 with the largest expenses reported to be compensation ($8 million) and fees for services ($4 million).

23 employees received $8 million in compensation, which equates to an average compensation of $348,000 (high by most standards).  17 of the 23 employees received more than $100,000 in compensation with the 10 most highly compensated reported to be:

• $2,341,284:  Charles Kahn III, President
• $  783,291:  Steve Speil, EVP
• $  684,474:  Kathleen Tenoever, SVP
• $  621,774:  Jeffrey Cohen, EVP
• $  424,344:  Kerry Price, SVP
• $  343,122:  Erin Richardson, VP and Assoc General Counsel
• $  297,893:  Paul Kidwell, VP, Policy
• $  282,686:  Leah Evangelista, VP, Public Relations
• $  267,566:  Sean Brown, VP, Communications
• $  253,996:  Patrick Velliky, VP, Legislation

As illustrated above, the 10 most highly compensated employees received more than $6 million in compensation.  The remaining 13 employees received $2 million in compensation , which equates to an average compensation of $154,000.

6 of the 10 most highly compensated employees are male while 4 are female (note:  The Form 990 does not report gender identity; conclusions were made based on name and google searches).

FAH paid for companion travel, tax indemnifications and gross-up payments, and health or social club dues and/or initiation fees. Specifically, Charles Kahn receives travel compensation for his spouse, gross up payments for his insurance premiums, and social club dues membership (note:  this benefit is also available to other employees).

16 independent contractors received more than $100,000 in compensation with the five most highly compensated reported to be:

• $304,920:  Health Policy Alts, Inc, of Wash, DC for reg and gov’t analysis, tech pyt
• $300,000:  Fierce Gov’t Relations, of Wash, DC for gov’t relations analysis
• $267,000:  Hooper Lundy and Bookman, of LA, CA for legal/reg analysis
• $240,000:  Elmendorf Strategies, of Wash, DC for lobbying task reg and analysis
• $220,000:  FTI Consulting, Inc., of NY, NY for public affairs/policy res services

To read the IRS Form 990 (2019), click here.