A New York Times investigation has revealed new details about lavish spending practices at the National Association of Realtors (NAR). At NAR, membership dues funded executive perks ranging from private club memberships to pet-sitting services.
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Former CEO Bob Goldberg’s 2017 signing put a spotlight on the organization’s spending culture. It included a $75,000 club membership fee, first class travel for himself and his wife, a $1,500 monthly car allowance, and even dog-sitting services. Over five years, his compensation package increased from $1.2 million to $2.6 million.
A New York Times investigation revealed a pattern of generous spending that extends to the organization’s top executives as well as its elected leaders. NAR’s president received more than $400,000 in 2022 and the president-elect received more than $265,000, a position the organization describes as a “volunteer” role.
Corporate credit cards issued to executives funded luxury experiences at high-end properties such as the St. Regis Hotel in Dana Point and the Montage Laguna Beach. Leaders charged cards for expensive dinners, golf, spa treatments and even Broadway shows.
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The New York Times reports that NAR continues to pay former executives large sums of money as consultants, years after they left the company. Goldberg’s predecessor has earned $250,000 annually as a “former executive/consultant” since 2019, while the former chief advocacy officer has earned more than $300,000 in 2022, according to tax records from Time Source. I had received it.
Nonprofit legal experts have expressed concern about this practice. Jeff Tenenbaum, a nonprofit lawyer based in Washington, D.C., wrote in the Times: “It is highly unusual, even virtually unheard of, for volunteer leaders and executives to receive compensation at such levels.” told.
The spending revelations come at a difficult time for NAR. The organization recently agreed to a $418 million settlement in a commission-related lawsuit, but member dissatisfaction is growing, according to the report. Three Michigan attorneys filed a class action lawsuit in August challenging NAR’s mandatory membership system, followed by similar lawsuits in Pennsylvania and California.
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