Executive Compensation at the American Medical Association (AMA) 2024

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 200,000-250,000 practicing dues-paying physicians belong to the AMA. Membership rates vary ($20-$420). As such, dues account for a very small portion (about $33 million or 6%) of the revenue stream for the AMA.

There are 21 independent voting members (trustees) on the governing board (Board of Trustees), although 25 are listed on the Form 990 (2024), 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 25 (60%) trustees are male while 10 of the 25 (40%) are female.

The AMA reported total revenue of $546 million in 2024  with the biggest source of revenue from “royalties” which totaled $301 million (55% of revenue) followed by gains ($93 million or 17% of revenue) and subscriptions, reprints, credentialing, and education programs ($78 millions or 14% of revenue).  In essence, 86% of revenue comes from 3 sources: royalties, gains, 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 $427 million (including $9 million in depreciation) – 78% of revenue –  with the largest expense reported to be compensation.  1,376 employees received $259 million in compensation which equates to an average compensation of $188,000 (note:  the AMA did use outside staffing services but the specifics are not reported).  However, only 823 employees received more than $100,000 with the 16 most highly compensated reported to be:

• $3,484,519:  Karen Maybank, SVP, Chief Health Equity Officer
• $3,062,109:  James L Madara, EVP and CEO
• $1,645,705:  Kenneth Sharigian, Chief Strategic Officer
• $1,488,959:  John Giacomin, COO
• $1,386,563:  Thomas J Easley, SVP, Publisher
• $1,111,277:   Todd D Unger, SVP and Chief Experience Officer
• $1,097,680:  Denise M Hagerty, SVP and CFO
• $1,092,520:  Kristin Bibbins-Domingo, SVP, Editor-in-Chief JAMA
• $1,026,722:  Lori Prestesater, SVP, Health Solutions
• $1,016,834:  Andra Heller, SVP and General Counsel
• $   674,564:  Thomas Giannulli, Former SVP, Chief Medical Info Officer*
• $   543,875:  Howard C Bauchner, Former SVP, Editor in Chief
• $   301,913:  Bruce Scott, President-Elect/President
• $   292,910:  Jesse M Ehrenfeld, President/Past President
• $   246,683:  Michael Suk, Chair-Elect/Chair
• $  219,915:  Willie Underwood, III, Chair/Past Chair

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

The 16 most highly compensated employees received $19 million in 2024, which equates to an average compensation of $1.2 million.  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 top employees were Kaaren Maybank who received $3.5 million and  James Madara who received more than $3 million in 2024.   

11 of the 16 (69%) most highly compensated employees are male while 5 of the 16 (31%) 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.

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

• $3 million:  Silverchair, of Charlottesville, VA for IT services
• $2 million:  City Staffing, of Chicago, IL for staffing services
• $1 million:  Manatt Phelps and Phillips, of LA, CA for professional services (law firm)
• $1 million:  Creative Circle, of Chicago, IL for staffing services
• $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 gains, subscriptions, reprints and credentialing. 1,376 employees worked for the AMA in 2024; their compensation ($259 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 (2024), click here.