Executive Compensation at the National Restaurant Association (2022)

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 with $90 million put back on the books in 2021) and an equity investment in Winsight, LLC which appears to have been sold in 2022 with a gain of $37 million (this appears to be the difference between the original write-off of $127 million in 2020 and the recovery of the $90 million note in 2021). A sponsorship agreement provides annual royalty payments equal to 2% of the gross revenues of the show for 45 years, beginning in 2019, which appear to stop after the sale.

The National Restaurant Association is the largest food trade organization in the world. Governed by a Board of Directors comprised of 63 independent individuals – 43 males and 20 females, the National Restaurant Association is a professional trade association, a tax-exempt non-profit organization based in Washington, DC.

In 2022, the National Restaurant Association reported total revenue of $97  million (compared to $86 million in 2021, $72 million in 2020, and $119 million in 2019)  so the organization still has not fully recovered from the pandemic, which was still going on in 2022.  Most of the revenue came from two (2) sources:  the sale of inventory which appears to be trade data ($79 million) and investment income, gains, and royalties ($8 million).  Membership dues – often the biggest source of revenue for trade associations – provided only $4 million to the organization in 2022.

Expenses totaled $109 million in 2022  (including $3 million in depreciation) with the five (5) highest expenses reported to be:

• Compensation ($50 million)
• State Restaurant Assoc Payments ($15 million)
• Office-Related Expenses ($14 million)
• Fees for Services ($9 million)
• Royalties ($6 million)

388 employees were compensated $50 million, which equates to an average compensation of $129,000. However, only 131 employees received more than $100,000 in compensation. The 16 most highly compensated employees were reported to be:

• $2,061,968:  Marvin Irby, CFO, CFO until 10/21; President and CEO until 5/22)
• $1,839,838:  Sean Kennedy, EVP, Policy and Government
• $1,452,836:  Michelle L Korsmo,  President and CEO (beginning 5/22)
• $1,319,775:  Sherman Brown, EVP, Training and Certification
• $1,177,202:  Chris Rodgers, EVP, General Counsel, and Corp Secretary*
• $ 976,367:  Dawn Sweeney, Former President and CEO
• $  781,444:  Kevin Steele, CIO
• $  654,338:  Tia E Mattson, EVP, Enterprise Marketing
• $  638,599:  Eric Ellis, CFO 
• $  501,785:  Clinton Wolf, SVP, Health Insurance Services
• $  474,601:  Terry Erdle, Past COO
• $  459,498:  Hudson Riehle, SVP, Research and Knowledge
• $  457,415:  Ngocdung Vu, SVP, Membership and Strategy Development
• $  434,608:  Angel0 Amador, SVP, Legal Advisory and Regulatory Council
• $  420,527:  Daniel Roehl, VP, Fed Gov’t Affairs
• $  391,412:  Dionne Harris, SVP, People and Culture

“*”Mr Rodgers appears as “Chris Rogers” in 2022 but has also previously been listed as “John Rodgers”

The 16 most highly compensated employees received $14 million in compensation.

The seven most highly compensated employees received more than $50 million between 2017-2022:

Dawn Sweeney:  Total Compensation 2017-2022:  $23 million

• 2022:  $  976,367
• 2021:  $2,089,333
• 2020:  $3,273,548
• 2019:  $5,891,851
• 2018:  $5,731,399
• 2017:  $5,202,030

Marvin Irby:  Total Compensation 2017-2022:  $8.5 million

• 2022:  $2,061,968
• 2021:  $1,591,638
• 2020:  $1,442,815
• 2019:  $1,175,743
• 2018:  $1,226,912
• 2017:  $1,132,325

Sean Kennedy:  Total Compensation 2019-2022:  $5 million

• 2022:  $1,839,838
• 2021:  $1,203,225
• 2020:  $1,127,737
• 2019:  $  536,067

Sherman Brown:  Total Compensation 2017-2022:  $6.5 million

• 2022:  $1,319,775
• 2021:  $  981,988
• 2020:  $  989,256
• 2019:  $1,002,135
• 2018:  $  914,998
• 2017:  $  796,846

Chris Rodgers:  Total Compensation 2019-2021:  $4 million

• 2022: $1,177,202
• 2021:  $  957,981
• 2020:  $  925,448
• 2019:  $  795,534

Kevin Steele:  Total Compensation 2017-2022: $4 million

• 2022:  $781,444
• 2021:  $767,736
• 2020:  $763,045
• 2019:  $702,848
• 2018:  $545,006
• 2017:  $463,334

Michelle Korsmo:  Total Compensation 2022:  $1.5 million

• 2022:  $1,452,836

12 of the 16 (75%) most highly compensated employees are male while 4 of the 16 (25%) 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 former President and CEO, Dawn Sweeney received $23 million in compensation from 2017-2022.
• The 7 most highly compensated employees received $52 million from 2017-2022 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 $155  million in net assets compared to $135 million at the beginning of the year.  The $37 million gain from the sale os Insight offset the  $11 million net loss for the year and a $5 million adjustment for the unrealized losses on investments.

To read the IRS Form 990 (2022), click here.