The National Association of Realtors (NAR) has spent much of the past few years having its dirty laundry aired across public domain and in courtrooms. Now a new report is taking aim at compensation for NAR executives.
On Monday, The New York Times published an expose about the lavish perks enjoyed by NAR’s executives. Chief among them is the salary of former CEO Bob Goldberg, who earned $1.2 million per year that later ballooned to $2.6 million.
Additionally, the Times reported that Goldberg’s contract entitled him to things like memberships to exclusive country clubs, first-class airfare for personal travel, expensive car allowances, money for his dog to travel with him and even tickets to “Hamilton” at the height of the musical’s popularity.
NAR could be running afoul of tax law given that it is a nonprofit trade association, the report claimed.
“It is highly unusual — I would even say virtually unheard-of — for volunteer leaders and officers to receive compensation at those levels,” Jeff Tenenbaum, a nonprofit lawyer in Washington, D.C., told the Times. “Many of us who practice association antitrust law have always wondered, ‘How can they get away with this?’”
Using NAR funds for personal benefit might be a violation known as “private inurement,” even if the spending is related to business travel. Private inurement could result in NAR losing its tax-exempt status.
The Times sourced its story through tax disclosures and former NAR executives and members who requested anonymity because they feared potential retaliation.
NAR has already been under fire from its membership for its handling of the $418 million commission lawsuit settlement agreed to in March. Frustration also appears to be boiling over with costly dues and unpopular membership rules.
Some Realtors question what they get out of their NAR memberships, but rules imposed by NAR and affiliates at the state and local levels force them to be members. Real estate agents don’t have access to a local MLS if they’re not part of the trade association.
The cost of fighting antitrust litigation — in addition to the $418 million in settlement money — has observers questioning whether courtroom battles are an extinction event for the trade group. Goldberg resigned a year ago, just days after NAR lost the Sitzer/Burnett commission lawsuit in Missouri.
The trade group has also been accused of discrimination, sexual harassment, intimidation and blackmail by a host of former employees, which led to the resignation of President Kenny Parcell in August 2023.
Non-profit executives don’t usually get lavish salaries etc?
Someone is way out of touch either at NYT or HW.