The New York Times (NYSE: NYT) has published another investigative report into the National Association of Realtors (NAR), this time examining the financial benefits enjoyed by its executive leadership.
Under the headline “Chauffeured Cars and Broadway Tickets: Inside the National Realtors Group,” the report cites former CEO Bob Goldberg’s “package of gold-plated perks” that included “membership dues for private clubs in both Chicago and Washington and a country club of his choice, including an initiation fee of up to $75,000.” Goldberg also received first-class airline tickets for business travel while his wife snagged a round-trip first-class ticket each month.
“He was given a $1,500 monthly car allowance and $2,250 a month to cover utilities and insurance at his pied-à-terre in Chicago, where NAR has its headquarters,” the Times report stated. “NAR even agreed to pay for a pet sitter to watch his dogs when Mr. Goldberg was away from his home outside Washington on business. The extras came on top of his $1.2 million salary that would, according to NAR’s tax returns, grow to $2.6 million in five years.
Reporter Debra Kamin claimed that she spoke to 18 former NAR officers and both former and current employees of the organization while examining “tax documents, internal budgets and a confidential employment contract.” She was also provided with a recording of a “confidential budget call” led by NAR CEO Nykia Wright.
The report noted how NAR’s “president, president-elect and first vice president are elected by members and receive annual six-figure payments, tax records show. NAR refers to officers as ‘volunteers.’ They have been given corporate credit cards, and on work trips, they have racked up charges from expensive dinners, golf outings, spa treatments and sports tickets.” It also detailed how NAR’s leaders used corporate credit cards to buy tickets to the Broadway show “Hamilton” when it opened in 2015.
The report further claimed that ‘seven lawyers who specialize in nonprofit law said the group’s spending not only appears excessive but also may run afoul of tax law,” adding that NAR’s “spending is known among watchers of nonprofits.”
The Times previously put NAR in the spotlight regarding sexual harassment allegations against members of its leadership and the lawsuit that brought about the historic settlement resulting in changes to how NAR members determine their commissions. The new article also cited lawsuits filed by agents in Michigan, Pennsylvania and California against the requirement for all NAR members to join their local, state and national associations, along with a hitherto unannounced consideration of charging for NAR’s educational programs that had previously been free.
The article closed with a quote from Jen McDonald, a broker in Reno, Nevada, who declared that NAR has done nothing for its members.
“I don’t think they defended us,” she said. “I think they defended themselves.”
;
