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August 22, 2022

Executive Compensation at the Federation of American Hospitals (2020)

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 24, 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 and who received $2 million in compensation in 2020.

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 million (compared to $15 million in 2019 and $15 million in 2018) most of which ($13 million) came from dues. With an estimated 1,000 members, the average dues are $13,000 annually.

Expenses totaled $15 million in 2020 with the largest expenses reported to be compensation ($8 million) and fees for services ($4 million).

24 employees received $8 million in compensation, which equates to an average compensation of $333,000 (high by most standards).  16 of the 24 employees received more than $100,000 in compensation with the 12 most highly compensated reported to be:

  • $1,991,324:  Charles Kahn III, President
  • $1,021,270  :  Steve Speil, EVP
  • $  899,523  :  Kathleen Tenoever, SVP
  • $  432,915  :  Kerry Price, SVP
  • $  460,416  :  Erin Richardson, SVP
  • $  365,501  :  Leah Evangelista, SVP
  • $  306,579:  Joseph Britton, EVP, Public Affairs
  • $  273,220  :  Sean Brown, VP, Communications
  • $  273,283  :  Patrick Velliky, VP, Legislation
  • $  266,224:  Alyssa Keefe, VP, Policy and Analysis (until 11/2020)
  • $  246,581:  Jonathan B Jagoda, VP, Legislation
  • $  239,279:  Claudia Salzberg, VP, Health Services Research and Policy

As illustrated above, the 12 most highly compensated employees received $7 million in compensation.  The remaining 17 employees received $1 million in compensation , which equates to an average compensation of about $60,000.

Over the past 5 years, Mr. Kahn has received more than $11 million in compensation:

  • 2020:  $2.0 million
  • 2019:  $2.3 million
  • 2018:  $2.9 million
  • 2017:  $1.8 million
  • 2016:  $2.3 million

5 of the 10 most highly compensated employees are male while 5 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 several other employees).

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

  • $358,583:  Locust Street Group, of Washington, DC for communications and advocacy
  • $300,000:  Fierce Government Relations, of Washington, DC for gov’t relations analysis
  • $278,320:  Health Policy Alts Inc., of Washington, DC for technical payment, reg, and gov’t analysis
  • $255,300:  Forbes Tate Partners, of Washington, DC for communications analysis
  • $253,800:  Hooper Lundy and Bookman, of Los Angeles, CA for legal, regulations analysis

To read the IRS Form 990 (2020), click here.

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