Executive Compensation at the American Red Cross (2023)

When most people think of the American Red Cross (ARC), they often think of blood collection, testing, and distribution and/or disaster services – both domestic and international and in the most simplistic terms, this is what the ARC is about.

Formally known as the American National Red Cross (the organization is the designated affiliate of the International Federation of Red Cross and Red Crescent Societies), ARC was established by Clara Barton in 1881 and given a charter by Congress in 1900 and again in 1905 to carry out humanitarian services. Since that time, the charter has been amended nine times, with the most recent in 2009 to address reforms to the organization.

In 2023, ARC raised $3.2 billion with most revenue ($2 billion) coming from the sale of biomedical services (i.e. blood and plasma collected through donations and sold) with the remaining revenue obtained primarily through contributions, gifts, and grants ($900 million including $54 million from the government).

Although contributions, gifts, and grants only comprised 28% of total revenue (or $900 million), it is important to remember the revenue stream of biomedical services is dependent upon donations (i.e. blood and plasma) so although one donation is tax-deductible (revenue) and the other isn’t (blood),  donors and potential donors still need to understand where revenue comes from and how dollars are spent.

Expenses totaled $3 billion with the largest expense reported to be compensation (salaries, pension, benefits, and payroll taxes).  17,410 employees (300 more than in 2022) received $1.5 billion (about $200 million less than in 2022) or an average compensation of $88,000.  376 employees received more than $100,000 in compensation.

The 15 most highly compensated employees were reported to be:

• $873,211:  Gail McGovern, President and CEO
• $780,995:  Clifford Holtz, Chief Operating Officer
• $728,500:  Chris Hrouda, President, Biomedical Services
• $650,824:  Shaun Gilmore, Chief Transformation Officer
• $638,189:  Brian Rhoa, CFO
• $495,535:  Paul Sullivan, SVP, Donor Services
• $487,391:  Phyllis Harris, General Counsel
• $480,660:  Melissa Hurst, Chief HR Officer
• $487,490:  Jack McMaster, President, Training Services
• $484,807:  Anne McKeough, Chief Development Officer
• $448,060:  Dominik Tolli, SVP, Product Management and Platform Development
• $430,056:  Rosemary McGillian, Chief Marketing /Communications Officer
• $390,739:  Trevor Riggen, President, Humanitarian Services
• $356,723:  Carmel Darcy, CFO
• $307,476:  Jennifer Hawkins, Corp Secretary and Chief of Staff

As illustrated above, the 15 most highly compensated employees received nearly $10 million in compensation.  8 of the 15 (53%) most highly compensated employees are male while 7 of the 15 (47%) are female (note:  gender is not reported on the Form 990; gender determinations were made based on name and google searches).  Interestingly, there are 13 voting members (board members) of the governing body, 12 of whom are independent, although 16 are listed on the Form 990 (due to timing differences):  10 (63%) are male while 6 (37%) are female.

The 5 most highly compensated employees received nearly $24 million in compensation from 2017-2023:

Gail McGovern:  Total Compensation 2017-2023:  $5 million

• 2023:  $873,211
• 2022:  $832,241
• 2021:  $640,483
• 2020:  $750,823
• 2019:  $709.164
• 2018:  $686,352
• 2017:  $621,956

Clifford Holtz:  Total Compensation 2017-2023:  $5 million

• 2023:  $780,885
• 2022:  $732,793
• 2021:  $781,120
• 2020:  $736,924
• 2019:  $700,415
• 2018:  $558,926
• 2017:  $485,335

Chris Hrouda:  Total Compensation 2017-2023:  $5 million

• 2023:  $728,500
• 2022:  $717,023
• 2021:  $751,789
• 2020:  $685,404
• 2019:  $642,142
• 2018:  $574,246
• 2017:  $593,459

Shaun Gilmore:  Total Compensation 2017-2023:  $5 million

• 2023:  $650,824
• 2022:  $679,502
• 2021:  $723,696
• 2020:  $656,912
• 2019:  $651,238
• 2018:  $578,599
• 2017:  $635,902

Brian Rhoa:  Total Compensation 2017-2023:  $4 million

• 2023:  $638,189
• 2022:  $594,976
• 2021:  $629,954
• 2020:  $574,028
• 2019:  $509,225
• 2018:  $500,967
• 2017:  $512,424

376 independent contractors received more than $100,000 in compensation with the five (5) most highly compensated reported to be:

• $10 million:  Dropoff Inc, of Austin, TX for courier services
• $26  million:  One & All, of Pasadena, CA for printing and mailing
• $11 million:  Generator Media Analytics, of NY, NY for marketing
• $10 million:  Mindtree, of Warren, NJ for consulting
• $ 9 million:  Captal Courier Services, of Lennesaw, GA for courier services

To read the IRS Form 990 (for the year ending June 30, 2023), click here.