Executive Compensation at the American Lung Association (2022)

The American Lung Association is a tax-exempt, non-profit 501 (c) (3) that focuses on preventing lung disease and improving lung health by providing program services (education and advocacy to the public (research grants comprise about 10% of expenses).

There are 19 independent members (directors) of the governing body (board of directors); 13 of the 19 (68%) directors are male while 6 of the 18 (32%) are female (note:  gender identity is not reported on the Form 990; conclusions were made based on name and google searches).

In 2017, the American Lung Association (ALA) underwent big changes when the eight charter and national boards voted to unite the organization into a single nationwide organization based in Chicago, Illinois, although there are local offices.

In 2022, the ALA raised $129 million (compared to $100 million in 2021, $104 million in 2020,  $113 million in 2019,and $108 million in 2018) most of which came from contributions, gifts and grants (including $41 million in grants from the government).

The organization spent $102 million (primarily on compensation, fees for services, direct mail, and advertising), and had $166 million in net fund assets at year-end (compared to just $15 million in 2016; note:  this increase is primarily due to an increase in revenue in 2018 while keeping expenses low that year, during the consolidation of the organization). Although ALA spent $27 million less than they collected in 2022, net assets did not increase primarily because ALA reported $26 million in net unrealizable losses on investments.

The ALA reported having 647 employees who were compensated $42 million (compared to 817 employees in 2021 who were compensated $42 million), which equates to an average compensation  of $65,000 so ALA is using less employees but paying them more.   69 employees received more than $100,000 in compensation with the 15 most highly compensated employees listed below:

• $607,879:  Harold Wimmer, President and CEO
• $308,468:  Julia Fitzgerald, Chief Marketing Officer
• $311,439:  Jeff Seyler, Chief Division Officer, East
• $301,467:  Laura Scott, CFO
• $300,658:  Sue Swan, Chief Development Officer
• $293,830:  Deborah Brown, Chief Mission Officer
• $287,533:  William Pfeifer, EVP, Governance
• $276,987:  Sarah Krikorian, Chief HR Officer
• $242,359:  Paul Billings, National SVP, Public Policy
• $221,296:  Sally Draper, National SVP, Development, Corporate
• $219,272:  Allison Hickey, EVP, Mountain Pacific & CA
• $215,107:  Susan Rappaport, National VP, Research
• $206,952:  Neil Ballentine, Chief Technology Officer
• $188,751: Emily Murphy, Division SVP, Development
• $181,189:  Lewis Bartfield, Chief Division Officer, West

9 of the 15 (60%) most highly compensated employees are female while 6 of the 15 (40%) are male. The 15 most highly compensated employees received $4 million in compensation. The most highly compensated employee was Harold Wimmer, the President and CEO who received $607,879 in compensation in 2022.  Mr. Wimmer received more than $3 million in compensation from 2017-2022:

Harold Wimmer: Total Compensation of $3.2 million from 2017-2022:

• 2022:  $608,879
• 2021:  $579,381
• 2020:  $554,712
• 2019:  $529,212
• 2018:  $481,591
• 2017:  466,608

Harold Wimmer received $35,057 from a 457 (F) plan.

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

• $5.1 million:  Production Solutions, of Vienna, VA for marketing
• $2.8 million:  R R Donnelly, of De Pere, WI for marketing
• $1.5 million:  Innovairre/Brickmill Marketing Services, of Milford, NH for marketing
• $1.8 million:  AD Council, of NY, NY for public service advertising
• $1.7 million:  Rescue Agency Public Benefit LLC, of San Diego, CA for marketing

As illustrated above, $13 million was spent on marketing and advertising for the 5 most highly compensated independent contractors;  there are 68 other independent contractors who received more than $100,000 in compensation. That $13 million represents 10% of revenue (note:  the ALA website reports 90% of revenue is spent on program services, 8% on fundraisings and 2% on administrative and general expenses). It is also important to note ALA only spent 79% of revenue in 2022 so 90% of every dollar could not have been spent on program services.

To read the IRS Form 990 (2021 for the year ending June 30, 2022), click here.