Executive Compensation at the American Petroleum Institute

The American Petroleum Institute (API) is a tax-exempt non-profit trade association for the oil and natural gas industry.  Based in Washington, DC API influences puli policy in support the oil and natural gas markets.  API is managed by 44 members (board members) of the governing body, 43 of whom are independent, although the most recent Form 990 (2019) lists 50 board members, 41 of whom are male (82%) and 9 of whom are female (18%).

In 2019, API reported total revenue of $239 million (compared to $234 million in 2018) with most revenue coming from two sources:  membership dues ($113 million which equates to about $200,000 per member company) and certification program and fees ($92 million).

Expenses totaled $250 million with the 4 largest expenses reported to be compensation ($74 million), fees for services -primarily consulting and auditing – ($64 million), advertising and promotion ($47 million), and office-related expenses ($23 million).

376 employees received $74 million in compensation, which equates to an average compensation of nearly $200,000.  The 16 most highly compensated employees were reported to be:

• $3,884,282:  Michael J Sommers, President and CEO
• $1,679,373:  Martin J Durbin, EVP and Chief Strategy Officer
• $1,148,136:  Amanda E Eversole, EVP and COO
• $1,124,010:  Kyle B Isakower, VP, Regulatory and Economic Policy
• $  897,693:  Debra C Phillips, SVP, Global Industry Services
• $  892,699:  Rolf W Hanson, VP, State Gov’t Relations
• $  811,293:  Charles R Williams, Exec Dir, Center for Offshore Safety
• $  750,987:  Frank J Machiarola, SVP, Policy, Economics, and Regulation
• $  714,722:  William A Koetzle, SVP, Federal Relations
• $  713,394:  Megan B Bloomgren, SVP, Communications
• $  703,186:  Robin R Rorick, VP, Midstream
• $  680,764:  Stacy R Linden, General Counsel and Corp Secretary
• $  612,500:  Howard Feldman, Sr Counselor, Policy, Econ, and RE
• $  394,181:  Paul G Afonso, SVP, Chief Legal Officer, and Corporate Secretary
• $  331,659:   Michael J Pfeifer, Director of Finance
• $  322,875:  Jose G Uria, Former Acting VP (key employee)

As illustrated above, the 16 most highly compensated employees received nearly $16 million in compensation.  11 of the 16 (69%) are male while 5 of the 16 (31%) are female.  Note, gender is not reported on the Form 990. Determinations were made based on name and google searches.

API paid for first class or charter travel, business class travel, companion travel, health club or social dues or initiation fees, personal services, gross up payments (and/or tax indemnification). For details on these expenses, continuation payments, and the supplemental benefit plan payments, see the Form 990, Schedule J, Part III, Supplemental Information

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

• $21.6 million:  GSD&M, of Dallas, TX for advertising
• $15.4 million:  Main Street Media Group, of Alexandria, VA for advertising
• $ 4.5 million:  DDC Advocacy, of National Harbour, MD for advocacy
• $ 2.6 million:  MRW Productions, of Santa Monica, CA for advertising
• $ 2.2 million:  Covington and Burlling, of Washington, DC for legal services

As illustrated above, a significant amount of revenue (total of $47 million in 2019) was spent on advertising and promotion.

It is also important to note API is in a -$63 million net asset position for two (2 reasons):  since 2016 )when the organization was in a positive $5 million net asset position), API has been spending more than the organization has received; and the pension/post retirement benefits have been underfunded.

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