Executive Compensation at the National Futures Association (2020)

In 1974, Congress established the Commodities Futures Trading Commission (CFTC) as an independent agency of the federal government to regulate the US derivatives market, which includes futures, swaps, and certain types of options.

The National Futures Association (NFA) is a tax-exempt, non-profit 501 (c) 6 business association that is a self-regulatory organization for the US derivatives market.

Sounds almost the same so what’s the difference? Both organizations are working to ensure legal standards are being adhered to but the NFA is only concerned with members of the NFA while operating under the authority of the CFTC.

The NFA has a governing body with 29 members, all of whom are independent.  30 board members (due to timing differences) are listed on the Form 990 (2019 for the year ending June 30, 2020), of which 23 (77%) are male while 7 (23%) are female.  Unlike most non-profit boards, members of the NFA governing body were compensated up to $44,000 a year.

In 2020, the NFA reported total revenue of $121 million (compared to $115 million in 2019 and $96 million in 2018), which primarily came from from assessment fees and market service revenue, and membership dues.

Expenses totaled $106 million, of which $82 million was compensation for the 601 employees, who received an average compensation of $136,000. However, only 244 employees received more than $100,000 in compensation. The 16 most highly compensated employees were reported to be:

• $856,100:  Thomas Sexton, President and CEO
• $728,258:  Daniel Driscoll, VP and COO
• $673,110:  Regina Thoele, SVP
• $621,829:  Edward Dasso, VP
• $551,362:  David Hawrysz, SVP, CFO, and Treasurer
• $533,423:  Carol Wooding, VP, GC, and Secretary
• $519,347:  Timothy McHenry, VP
• $513,496:  Karen Wuertz, SVP
• $419,966:  Jamila Piracci, VP
• $377,196:  Joseph Hawrysz, Managing Director, Compliance
• $367,831:  Joseph Zangri, Managing Director, Exams, OTC
• $355,811:  Thomas Gisonda, Managing Director, OTC Derivatives
• $351,701:  Dale Spoljaric, Managing Director, Compliance
• $349,586:  Adrianna Joves, Associate Counsel
• $289,644:  Yvette Christman, VP
• $239,885:  Nancy Bohanon, VP

The 16 most highly compensated employees received $8 million in compensation.  9 of the 16 (56%) most highly compensated employees are male while 7 of the 16 (44%) are female.

NFA pays for business class travel for all officers.

Health or social club dues or initiation fees were paid by NFA. Specifically, health club dues were provided to Carol Wooding, Daniel Driscoll, Michael Otten, Regina Thoele, Karen Wuertz, Timothy McHenry, David Hawrysz, Edward Dasso, Jamila Piracci, and Thomas Sexton in the amount of $5,089.

David Hawrysz and Joseph Hawrysz appear to be related.

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

• $875,093:  CDW Direct, of Vernon Hills, IL for computer support
• $872,718:  Jenner Block, of Chicago, IL for legal consulting
• $266,962:  Redlegg,  of St Charles, IL for IT Security
• $221,351:  Ernst Young, LLP, of Chicago, IL for accounting services
• $204,142:  Bloomberg LP, of Chicago, IL for data services

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