Executive Compensation at AARP (2024)

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.  However, revenue from membership dues was $371 million which appears to indicate total membership is about 25 million (based o $15 annually).

Based in Washington, DC, AARP has 12 voting members in its governing body, 11 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 2024, AARP reported total revenue of $11 billion (compared to $1.7 billion in 2023, $1.8 billion in 2022 and $2.0 billion in 2021)  – a dramatic increase due to a one-time $9 billion payment from United Healthcare for he right to market Medicare Advantage and Supplemental health plans for 12 years,.  Of the $2 billion of “normal’ revenue:  the largest sources of revenue is from royalties ($0.9 billion), memberships dues ($371 million), investment income and gains ($449 million), and publication and digital advertising revenue ($162 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 $1.8 billion  with the largest expense reported to be compensation.  2,187 employees received $425 million (or an average of $194,000).

1,550 (or about 71% of employees) received more than $100,000 in compensation.  The most highly compensated employees were reported to be:

• $2,871,820:  Jo Ann Jenkins, CEO (until 11/8/24)
• $1,099,565:  Scott Frisch, EVP and COO
• $   928,355:  Nancy A LeaMond, EVP, Advocacy and Engagement
• $   836,924:  Martha Boudreau, EVP and Chief, Communications and Marketing
• $   694,621:  Kevin Donnellan, EVP and Chief of Staff
• $   663,071:  David Morales, EVP and General Counsel
• $   652,419:  Debra Whitman, EVP and Public Policy Officer
• $   616,137:  Nancy Smith, EVP and Corporate Secretary
• $   610,555:  Kevin Bell, SVP, Financial Planning and Analysis
• $   605,607:  Edna Kane-Williams, EVP and Chief Diversity Officer
• $   594,199:  Sami Hassanyeh, SVP, Digital Strategy and Membership
• $   581,266:  Kristin Dillon, SVP, States and Community Engagement
• $   562,220:  Myrna Blyth, SVP and Editorial Director
• $   556,573:  William Sweeny, SVP, Gov’t Affairs
• $   554,999:  Doris Dickens-Gilliam, Associate General Counsel
• $   548,777:  John Francis Hishta, SVP, Campaigns
• $   532,283:  Karen Mercer, SVP and Treasurer
• $   413,824:  Myechia Minter-Jordan, CEO (as of 11/11/24)

The 18 most highly compensated employees received $14 million in compensation, which equates to an average of $775,000.

The most highly compensated employee was Jo Ann Jenkins who received $2.9 million in 2024 and $18 million from 2015-2024:

Jo Ann Jenkins:  Total Compensation 2015-2024:  $18 million

• 2024:  $2.9 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, and provided housing allowances or a residence for personal use.  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.  See the Form 990, Schedule J, Part III, Supplemental Information for more details.

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

• $294 million:  Incomm Digital Solutions, of Atlanta, GA for bulk gift cards
• $ 78 million:  Essence Mediacom LLC, of NY, NY for media
• $ 34 million:  RR Donnelly, of Chicago, IL for printing services
• $ 34 million:  Strand Marketing, of Hermosa Beach, CA for digital marketing services
• $ 76 million:  Quad Graphics, of Alexandria, VA for marketing

At year-end, AARP reported net assets of $12.1 billion compared to $2.7 billion at the beginning of the year with the growth primarily attributable to the one-time $9 billion payment from United Healthcare for the 12-year contract to market Medicare Advantage and supplemental health plans through AARP.

Joseph Coughlin, an AARP Board Member received a $360,000 unrestricted grant to MIT’s Agelab (for which he is director of) in 2024.

To read the IRS Form 990 (2024), click here.