Executive Compensation at the American Medical Association (AMA) 2023

The American Medical Association (AMA) is a non-profit 501 (c) (6) – a professional association and the largest association of physicians – whose primary purpose is to:

• publish the Journal of the American Medical Association (JAMA) – a peer reviewed medical journal that includes original research, reviews, and editorials of medicine;
• maintain a code of medical ethics,
• create and maintain physician data which is sometimes referred to as master files; and
• update and maintain medical classification codes (referred to as CPT codes) used by the government, medical practices, hospitals, and insurance companies in return for royalty fees.

Although the AMA is a professional association, membership dues are surprisingly not a large source of revenue for the organization. There are about 1 million physicians in the US, but only about 250,000 practicing dues-paying physicians belong to the AMA. Membership rates vary ($20-$420). As such, dues account for a very small portion (about $35 million or 7%) of the revenue stream for the AMA.

There are 21 independent voting members (trustees) on the governing board (Board of Trustees), although 23 are listed on the Form 990 (2023), which appears to be due to timing differences.  All board members received compensation although the amounts vary from $33,500 to nearly $300,000.  15 of the 23 (65%) trustees are male while 8 of the 23 (35%) are female.

The AMA reported total revenue of $468 million in 2023  with the biggest source of revenue from “royalties” which totaled $285 million (61% of revenue) followed by subscriptions, reprints, credentialing, and education programs ($84 millions or 18% of revenue).  In essence, 79% of revenue comes from 2 sources: royalties, and subscriptions, reprints, credentialing, and education programs.

Royalties is a general term for the fees paid by any doctor, group, practice, hospital, or payers (i.e. insurance companies, Medicare, Medicaid, etc) who uses the CPT (Current Procedural Terminology) Codes/Booklets/Etc (a medical code set established and maintained by the AMA) that the AMA established to classify medical, surgical, and diagnostic services.  This is by far the largest source of income to the AMA who holds the copyright for the CPT Coding system. Therefore, any person or organization that uses the codes must pay license fees (royalties) for the use of the codes.

Expenses totaled $403 million (including $10 million in depreciation) – 86% of revenue –  with the largest expense reported to be compensation.  1,369 employees received $236 million in compensation which equates to an average compensation of $172,000 (note:  the AMA did use outside staffing services but the specifics are not reported).  However, only 698 employees received more than $100,000 with the 19 most highly compensated reported to be:

• $2,733,515:  James L Madara, EVP and CEO
• $1,736,149:  Thomas Giannulli, SVP, Chief Medical Info Officer*
• $1,494,400:  Kenneth Sharigian, Chief Strategic Officer
• $1,270,862:  Thomas J Easley, SVP, Publisher
• $1,063,205:  Howard C Bauchner, Former SVP, Editor in Chief
• $1,049,455:  John Giacomin, COO
• $1,038,150:  Kristin Bibbins-Domingo, SVP, Editor-in-Chief JAMA
• $1,007,806:  Todd D Unger, SVP and Chief Experience Officer
• $  996,763:  Denise M Hagerty, SVP and CFO
• $  864,225:  Karen Maybank, SVP, Chief Health Equity Officer
• $  851,530:  C Todd Askew, SVP, Advocacy
• $  405,092:  Phil Fontanarosa, VP and Acting Editor in Chief, JAMAA
• $  297,560:  Jack Resneck, President-Elect, President
• $  287,560:  Jesse M Ehrenfeld, Trustee/Chair Elect
• $  248,880:  Willie Underwood, III, Chair-Elect/Chair
• $  215,255:  Bruce Scott, HOD Speaker/President-Elect
• $  213,987:  Sandra Adamson Fryhofer, Chair Elect/Chair
• $  169,764:  Laurie A S McGraw, SVP, Health Solution
• $  164,358:  Gerald Harmon, Past President

“*” indicates a portion of compensation was from a related/affiliated organization

The 19 most highly compensated employees received more than $16 million in 2023, which equates to an average compensation of $850,000.  However, it is interesting to note the gaps in compensation appear to be because the individuals at the bottom of the list are trustees who sit on the Board.

The most highly compensated employee was James Madara who received more than $2.7 million in 2023 and $23 million from 2015-2023.

The 19 most highly compensated employees received $94 million in compensation from 2015-2023 (note:  highly compensated employees in 2015-2022 but not in 2023 are not included in the list below):

James Madara:  Total Compensation 2015-2023:  $23 million

• 2023:  $2,733,515
• 2022:  $2,914,728
• 2021:  $2,646,192
• 2020:  $2,902,055
• 2019:  $2,483,665
• 2018:  $2,536,019
• 2017:  $2,245,446
• 2016:  $2,269,117
• 2015:  $2,035,378

Thomas Giannulli:  Total Compensation 2021-2023:  $4 million

• 2023:  $1,736,149
• 2022:  $1,273,791
• 2021:  $1,117,127

Kenneth Sharigian:  Total Compensation 2015-2023:  $11 million

• 2023:  $1,494,400
• 2022:  $1,591,948
• 2021:  $1,541,212
• 2020:  $1,531,973
• 2019:  $1,340,374
• 2018:  $1,130,659
• 2017:  $1,027,918
• 2016:  $  893,246
• 2015:  $  902,470

Thomas Easley:  Total Compensation 2015-2023:  $9 million

• 2023:  $1,270,862
• 2022:  $1,363,218
• 2021:  $1,244,549
• 2020:  $1,169,153
• 2019:  $1,053,055
• 2018:  $  900,763
• 2017:  $  745,367
• 2016:  $  680,726
• 2015:  $  646,592

Howard Bauchner:  Total Compensation 2015-2023:  $10 million

• 2023:  $1,063,205
• 2022:  $2,550,156
• 2021:  $1,163,902
• 2020:  $1,116,913
• 2019:  $1,007,225
• 2018:  $1,057,572
• 2017:  $  922,457
• 2016:  $  843,012
• 2015:  $  687,290

Jon Giacomin:  Total Compensation 2023:  $1 million

• 2023:  $1,049,455

Kristin Bibbins-Domingo:  Total Compensation 2023:  $1 million

• 2023:  $1,038,150

Todd Unger:   Total Compensation 2019-2023:  $5 million

• 2023:  $1,007,806
• 2022:  $1,092,138
• 2021:  $1,037,506
• 2020:  $  970,250
• 2019:  $  978,376

Denise Hagerty:  Total Compensation 2015-2023:  $7 million

• 2023:  $  996,763
• 2022:  $1,055,759
• 2021:  $  945,462
• 2020:  $  821,308
• 2019:  $  790,596
• 2018:  $  730,874
• 2017:  $  681,904
• 2016:  $  691,027
• 2015:  $  693,782

C Todd Askew:  Total Compensation 2022-2023:  $2 million

• 2023:  $851,530
• 2022:  $875,544

Karen Maybank:  Total Compensation 2022-2023:  $2 million

• 2023:  $864,225
• 2022:  $871,953

Phil Fontanarosa:  Total Compensation 2021-2023:  $3 million

• 2023:  $  405,092
• 2022:  $1,304,823
• 2021:  $1,129,031

Jack Resneck:  Total Compensation 2015-2023:  $2 million

• 2023:  $297,560
• 2022:  $297,560
• 2021:  $192,155
• 2020:  $ 80,000
• 2019:  $209,315
• 2018:  $244,890
• 2017:  $146,575
• 2016:  $ 83,790
• 2015:  $ 67,650

Jesse M Ehrenfeld:  Total Compensation 2015-2023:  $2 million

• 2023:  $287,560
• 2022:  $200,555
• 2021:  $127,250
• 2020:  $195,415
• 2019:  $248,880
• 2018:  $165,515
• 2017:  $126,850
• 2016:  $ 92,400
• 2015:  $ 73,800

Willie Underwood:  Total Compensation 2019-2023:  $1 million

• 2023:  $248,880
• 2022:  $150,615
• 2021:  $ 75,400
• 2020:  $ 69,900
• 2019:  $ 35,100

Bruce Scott:  Total Compensation 2015-2023:  $1 million

• 2023:  $215,255
• 2022:  $200,950
• 2021:  $136,300
• 2020:  $ 93,250
• 2019:  $ 83,850
• 2018:  $ 74,750
• 2017:  $ 76,050
• 2016:  $ 61,670
• 2015:  $ 31,125

Sandra Adamson Fryhofer:  Total Compensation 2018-2023:  $1 million

• 2023:  $213,987
• 2022:  $253,452
• 2021:  $169,187
• 2020:  $ 99,297
• 2019:  $ 84,376
• 2018:  $ 43,275

Laurie McGraw:  Total Compensation 2017-2023:  $7 million

• 2023:  $  169,764
• 2022:  $1,343,982
• 2021:  $1,166,385
• 2020:  $1,215,052
• 2019:  $1,168,413
• 2018:  $1,054,269
• 2017:  $  900,977

Gerald Harman:  Total Compensation 2015-2023:  $2 million

• 2023:  $164,358
• 2022:  $284,276
• 2021:  $304,976
• 2020:  $185,302
• 2019:  $ 93,472
• 2018:  $188,922
• 2017:  $240,572
• 2016:  $137,622
• 2015:  $ 77,826

14 of the 19 (74%) most highly compensated employees are male while 5 of the 19 (26%) are female.

The AMA paid for first class or charter travel and health or social club dues or initiation fees.  In addition, the AMA has various deferred compensation plans. Please refer to the Form 990, Schedule J, Part III, Supplemental information for more details on first class travel, health or social club dues and the retirement plans.

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

• $2.5 million:  Silverchair, of Charlottesville, VA for IT services
• $1.8 million:  City Staffing, of Chicago, IL for staffing services
• $1.7 million:  Mathematica, of Princeton, NJ for survey services
• $1.2 million:  John Wiley and Sons, of Hoboken, NJ for IT services
• $1.1 million:  Forward Health Group, of Madison, WI for IT services

In summary, the AMA’s golden goose is its medical classification coding system – the CPT Coding System, which is the primary source of the organization’s revenue, followed by subscriptions, reprints and credentialing. 1,369 employees worked for the AMA in 2023; their compensation ($236 million) accounted for the largest expense.   The top executives are compensated millions and the organization paid for first class travel and paid for health or social club club dues or initiation fees.

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