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January 31, 2022

Executive Compensation at the American Red Cross (2020)

by Anne Paddock

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 16 voting members, 15 of whom are independent. The Form 990 (2019 for the year ending June 30, 2020) lists 17 board members (due to timing differences), of which 13 (76%) are male and 4 (24%) are female.

In 2020, ARC reported total revenue of $2.8 billion (compared to $2.8 billion in 2019 and $3.6 billion in 2018), most of which came from biomedical products and services ($1.7 billion) and contributions, gifts, and grants ($900 million).

Expenses totaled $2.6 billion (not including $85 million in depreciation) with the  five largest expenses being compensation ($1.4 billion), biomedical supplies and blood testing ($438 million), grants ($235 million), office-related expenses ($234 million), and fees for services ($228 million).

Net assets were $1.4 billion at the beginning of the year but increased to $1.8 billion at year-end because ARC did not spend as much as the organization raised, and because of an adjustment in pension and post retirement benefits.

18,984 employees received $1.4 billion in compensation, which equates to an average compensation of $72,000.

1,576 employees received more than $100,000 in compensation with the 16 most highly compensated employees listed below:

  • $750,823:  Gail McGovern, President and CEO
  • $736,924:  Clifford Holtz, COO
  • $685,404:  Chris Hrouda, President, Biomedical Services
  • $656,912:  Shaun Gilmore, Chief Transformation Officer
  • $574,028:  Brian Rhoa, CFO
  • $464,126:  Paul Sullivan, SVP, Collections
  • $442,490:  Jack McMaster, President, Training Services
  • $440,430:  Don Herring, Chief Development Officer
  • $408,776:  Jennifer Do, Technologist III, IRL
  • $402,321:  Melissa Hurst, Chief HR Officer
  • $401,384:  Phyllis Harris, General Counsel
  • $392,938:  Peter Giamalva, SVP, Biomedical Sales and Marketing
  • $389,433:  Pampee Young, Chief Medical Officer
  • $387,974:  Neal Litvack, Chief Marketing Officer
  • $336,954:  Harvey Johnson, President, Humanitarian Services
  • $268,250:  Jennifer Hawkins, Corp Secretary and Chief of Staff

The 16 most highly compensated employees received $8 million in compensation.  10 of the 16 (63%) most highly compensated employees are male while 6 of the 16 (37%) are female.

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

  • $11.1 million:  Drop-off Inc, of Atlanta, GA for courier services
  • $ 8.4 million:  Mindtree Limited, of Warren, NJ for IT consulting
  • $ 9.2 million:  One All, of Pasadena, CA for printing and mailing
  • $ 8.6 million:  Servicemaster, of Memphis, TN for building services
  • $ 5.2 million:  Charles Pankow Builders, of Pasadena, CA for building services

To read the IRS Form 990 (2019 for the year ending June 30, 2020), click here.

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