Executive Compensation at the National Restaurant Association (2021)

The National Restaurant Association had a windfall of about $170 million in 2018 when they sold the “National Restaurant Association Show” to a unrelated private company Winsight, LLC – an information services company focused on the food and beverage industry. Consideration received included a promissory note (about $150 million of which $127 million was written off in 2020 and $90 million put back on the books in 2021) and an equity investment in Winsight, LLC. A sponsorship agreement provides annual royalty payments equal to 2% of the gross revenues of the show for 45 years, beginning in 2019.

The National Restaurant Association is the largest food trade organization in the world. Governed by a Board of Directors comprised of 58 independent individuals – 44 males and 14 females, the National Restaurant Association is a professional trade association, a tax-exempt non-profit organization based in Washington, DC.

In 2021, the National Restaurant Association reported total revenue of $96  million (compared to $72 million in 2020, and $119 million in 2019) most of which came from two (2) sources:  the sale of inventory which appears to be trade data ($67 million) and investment income, gains, and royalties ($21 million).  Membership dues – often the biggest source of revenue for trade associations – provided only $4 million to the organization in 2021.

Expenses totaled $98 million in 2021  (including $13 million in depreciation) with the five (5) highest expenses (not including depreciation) reported to be:

• Compensation ($39 million)
• State Restaurant Assoc Payments ($15 million)
• Office-Related Expenses ($13 million)
• Fees for Services ($8 million)
• Royalties ($5 million)

366 employees were compensated $39 million, which equates to an average compensation of $107,000. However, only 117 employees received more than $100,000 in compensation. The 15 most highly compensated employees were reported to be:

• $2,091,677:  Tom Bene, Past President and CEO (began 6/20)
• $2,089,333:  Dawn Sweeney, Former President and CEO
• $1,189,805:  Terry Erdle, Past COO
• $1,591,638:  Marvin Irby, CFO, CFO until 10/21; President and CEO
• $1,203,225:  Sean Kennedy, EVP, Policy and Government
• $  981,988:  Sherman Brown, EVP, Training and Certification
• $  957,981:  John Rodgers, EVP, General Counsel, and Corp Secretary
• $  767,736:  Kevin Steele, CIO
• $  503,535: Tia E Mattson, EVP, Enterprise Marketing
• $  430,085:  Hudson Riehle, SVP, Research and Knowledge
• $  378,811:  Perry Quinn, SVP, Business Innovation Development
• $  460,734:  Clinton Wolf, SVP, Health Insurance Services
• $  393,635:  Angel0 Amador, SVP, Legal Advisory and Regulatory Council
• $  392,300:  Daniel Roehl, VP, Fed Gov’t Affairs
• $  334,550:  Eric Ellis, CFO (start 10/21)

The 15 most highly compensated employees received $14 million in compensation.

The seven most highly compensated employees received $50 million between 2017-2021:

Tom Bene:  Total Compensation 2020-2021:  $4 million

• 2021:  $2,091,677
• 2020:  $1,560,544

Dawn Sweeney:  Total Compensation 2017-2021:  $22 million

• 2021:  $2,089,333
• 2020:  $3,273,548
• 2019:  $5,891,851
• 2018:  $5,731,399
• 2017:  $5,202,030

Terry Erdle:  Total Compensation 2017-2021:  $6.5 million

• 2021:  $1,189,805
• 2020:  $1,562,433
• 2019:  $1,427,471
• 2018:  $1,271,090
• 2017:  $1,100,341

Marvin Irby:  Total Compensation 2017-2021:  $6.5 million

• 2021:  $1,591,638
• 2020:  $1,442,815
• 2019:  $1,175,743
• 2018:  $1,226,912
• 2017:  $1,132,325

Sean Kennedy:  Total Compensation 2019-2021:  $3 million

• 2021:  $1,203,225
• 2020:  $1,127,737
• 2019:  $  536,067

Sherman Brown:  Total Compensation 2017-2021:  $5 million

• 2021:  $  981,988
• 2020:  $  989,256
• 2019:  $1,002,135
• 2018:  $  914,998
• 2017:  $  796,846

John Rodgers:  Total Compensation 2019-2021:  $3 million

• 2021:  $957,981
• 2020:  $925,448
• 2019:  $795,534

13 of the 15 most highly compensated employees are male while 2 of the 15 are female (note:  gender is not reported on the Form 990; conclusions were made based on name and google searches).

The National Restaurant Association paid for first class or charter travel, travel for companions, and health or social club dues or initiation fees.  In addition, the organization made gross up payments or provided tax indemnification.  For details on these expenses, see the Form 990, Schedule J, Part III, Supplemental Information.

In conclusion,

• National Restaurant Association is a trade organization that relies primarily on  the sale of trade data for revenue.
• The President and CEO, Dawn Sweeney received $22 million in compensation from 2017-2021.
• The 7 most highly compensated employees received $50 million from 2017-2021 while the organization paid for first class travel, companion travel, a club membership, and provided gross up payments on a long-term disability policy.  And, finally it is interesting to note, the National Restaurant Association has $135  million in net assets (which is primarily due to the recovery ($90 million) of a write-off ($127 million) of the Winsight note).  

To read the IRS Form 990 (2021), click here.