Executive Compensation at AARP (2023)

AARP – the American Association of Retired Persons – is a tax-exempt, non-profit organization who offers a broad mission:  “to empower people to choose how they live as they age” but more specifically focuses on the issues and benefits of those 50 years and older.  With an estimated 38 million members who pay $15-$20 annually, AARP is one of the largest non-profit member-based organizations in the country.

Based in Washington, DC, AARP has 13 voting members in its governing body, 12 of whom are independent; although 14 are listed on the most recent Form 990 (2023); 7 of whom are female while 7 are male.

In 2023, AARP reported total revenue of $1.7 billion (compared to $1.8 billion in 2022 and $2.0 billion in 2021) with the largest sources of revenue from royalties ($1.1 billion), memberships dues ($289 million), investment income and gains ($113 million), and publication advertising revenue ($106 million), which means AARP is primarily engaged in obtaining revenue from royalties through the use of their name with the sale of insurance policies and other products sold to members.

Expenses totaled $1.7 billion  with the largest expense reported to be compensation.  2,153 employees received $397 million (or an average of $184,000).

1,424 (or about 66% of employees) received more than $100,000 in compensation.  The most highly compensated employees were reported to be:

• $2,501,761:  Jo Ann Jenkins, CEO
• $  856,054:  Nancy A LeaMond, EVP, Advocacy and Engagement
• $  874,952:  Scott Frisch, EVP and COO
• $  791,812:  Martha Boudreau, EVP and Chief, Communications and Marketing
• $  643,180:  Kevin Donnellan, EVP and Chief of Staff
• $  615,823:  David Morales, EVP and General Counsel
• $  608,372:  Debra Whitman, EVP and Public Policy Officer
• $  572,458:  Nancy Smith, EVP and Corporate Secretary
• $  562,722:  Edna Kane-Williams, EVP and Chief Diversity Officer
• $  559,289:  Kristin Dillon, SVP, States and Community Engagement
• $  552,106:  Myrna Blyth, SVP and Editorial Director
• $  532,604:  Sami Hassanyeh, SVP, Digital Strategy and Membership
• $  517,387:  William Sweeny, SVP, Gov’t Affairs
• $  508,214:  Susan Reinhard, SVP, Public Policy
• $  498,592:  Karen Mercer, SVP and Treasurer

The 15 most highly compensated employees received $11 million in compensation, which equates to an average of $750,000.

The most highly compensated employee was Jo Ann Jenkins who received $2.5 million in 2023 and $15 million from 2015-2023:

Jo Ann Jenkins:  Total Compensation 2015-2023:  $15 million

• 2023:  $2,5 million
• 2022:  $1.6 million
• 2021:  $2.7 million
• 2020:  $1.5 million
• 2019:  $1.4 million
• 2018:  $1.3 million
• 2017:  $1.4 million
• 2016:  $1.1 million
• 2015:  $1.0 million

AARP paid for first class or charter travel, travel for companions, gross up payments or made tax indemnification.  Specifically, AARP paid for first class travel for AARP board members, officers, and key employees when business class accommodations were not available for flights exceeding 5 hours (not hard to do with a connection), or when there is late night arrival, or medical reasons.  The CEO, President, and Board Chair were allowed to fly first class or business class on flights exceeding 90 minutes.

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

• $153 million:  Incomm Digital Solutions, of Atlanta, GA for bulk gift cards
• $ 70 million:  Essence Mediacom LLC, of NY, NY for media
• $ 42 million:  RR Donnelly, of Chicago, IL for printing services
• $ 38 million:  LSC Communications, of Chicago, IL for digital print services
• $ 32 million:  Quad Graphics, of Alexandria, VA for marketing

At year-end, AARP reported net assets of $2.7 billion compared to $2.4 billion at the beginning of the year with the growth primarily attributable to unrealized gains on investments ($268 million).

Joseph Coughlin, an AARP Board Member received a $275,000 unrestricted grant to MIT’s Agelab (for which he is director of) in 2023.

To read the IRS Form 990 (2023), click here.