Executive Compensation at the Federation of American Hospitals (2020)
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.