Executive Compensation at the American Lung Association (2023)

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 16 independent voting members (directors) of the governing body although 18 are listed on the Form 990 (2023) due to timing differences;  11 of the 18 (61%) are male while 7 of the 18 (39%) are female.

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 2023, the ALA raised $109 million (compared to $129 million in 2022, $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 $30 million in grants from the government).

The organization spent $113 million (primarily on compensation, fees for services, direct mail, and advertising), and had $174 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 $4 million more than they collected in 2023, net assets  increased primarily because ALA reported $96million in net unrealizable gains on investments.

The ALA reported having 558 employees who were compensated $46 million (compared to $647 in 2022 who were compensated $42 million and 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.   80 employees received more than $100,000 in compensation with the 15 most highly compensated employees listed below:

• $655,327:  Harold Wimmer, President and CEO
• $318,847:  Julia Fitzgerald, Chief Marketing Officer
• $325,779:  Jeff Seyler, Chief Division Officer, East
• $328,349:  Laura Scott, CFO
• $324,071:  Sue Swan, Chief Development Officer
• $312,987:  Deborah Brown, Chief Mission Officer
• $297,527:  Sarah Krikorian, Chief HR Officer
• $260,261:  Paul Billings, National SVP, Public Policy
• $246,772:  Allison Hickey, EVP, Mountain Pacific & CA
• $238,406:  Susan Rappaport, National VP, Research
• $261,523:  Neil Ballentine, Chief Technology Officer
• $222,785:  Léa Gutierrez, Chief Diversity Officer
• $219,263:  Joenell Henry-Tanner, Chief of Staff, SVP. Governance
• $213,470: Emily Murphy, Division SVP, Development
• $204,326:  Maria Vanegas-Zea, National AVP, HR

The 15 most highly compensated employees received $4 million in compensation.  11 of the 15 (73%) most highly compensated employees are female while 4 of the 15 (27%) are male. The 15 most highly compensated employees received $4.4 million in compensation. The most highly compensated employee was Harold Wimmer, the President and CEO who received $655,327 in compensation in 2023.  Mr. Wimmer received $4 million in compensation from 2017-2023:

Harold Wimmer: Total Compensation:  $4 million

• 2023:  $655,327*
• 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:

• $4.5 million:  Production Solutions, of Vienna, VA for marketing
• $2.9 million:  R R Donnelly, of De Pere, WI for marketing
• $2.9 million:  AD Council, of NY, NY for public service advertising
• $2.3 million:  Innovairre/Brickmill Marketing Services, of Cherry Hill for marketing
• $1.2 million:  Rescue Agency Public Benefit LLC, of San Diego, CA for marketing

As illustrated above, $14 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 $14 million represents 13% 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 73% of revenue in 2023 so 90% of every dollar could not have been spent on program services.

To read the IRS Form 990 (2022 for the year ending June 30, 2023), click here.