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November 14, 2021

Executive Compensation at the Federation of American Hospitals

by Anne Paddock

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.

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