Professional Documents
Culture Documents
Introduction
The National Association of REALTORS (NAR) Association Leadership Development Department together with Groh & Associates, Inc. surveyed local REALTOR associations. The purpose of the survey is to collect data on local association chief staff executive compensation to create a report that the association boards and executives can use for assessing pay policies and programs for their chief staff executives. A work group comprised of REALTOR association executives developed the survey questions and retained Groh & Associates to conduct a paper survey, collect and analyze results and prepare this summary report. Use of an outside consultant to collect and secure data ensures the confidentiality of respondents.
Acknowledgement
NAR thanks the more than 500 local REALTOR association executives who participated in the survey.
National Association of REALTORS 2010 Profile of Local Association Executive Compensation and Benefits
An average results from totaling up all the statistical responses to a question and dividing the total by the number of respondents to the question. Because the survey database has many local associations with a small number of members and a few mega associations with very many members, averages may be skewed by the responses from these two groups. To provide more meaningful results for members, we have separated many findings by membership size. In addition, because the median is less sensitive to extreme ranges, it may be considered more statistically reliable.
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Profile of Chief Staff Executive Survey Results Title (Association Executive) Work status (full time) Years working for local association Years in current position Education (college degree) Professional designations 2008 32% 82% 11.3 8.7 38% 48% 2010 34% 79% 10.7 8.7 45% 44%
National Association of REALTORS 2010 Profile of Local Association Executive Compensation and Benefits
Full-time Chief Staff Executives Median Annual Base Salaries (without Bonus or Incentive) 2008 Overall Survey Findings Range Median Average $1,200 - $440,000 $69,777 $57,100 By Membership Size Small Medium Large Mega $34,000 $72,000 $105,000 $130,500 By Years in Current Position Less than 2 2-5 5-10 10-15 More than 15 $47,000 $53,400 $52,500 $59,000 $70,000 By Association Net Worth Less than $400,000 $400,000 - $999,999 $1million or more $38,000 $64,000 $95,000 By RCE Designation With designation Without designation $85,414 $48,000 By Education Level Associate degree or less Bachelors degree Advanced degree $58,225 $68,000 $78,000
$80,000 $40,000
National Association of REALTORS 2010 Profile of Local Association Executive Compensation and Benefits
Full-time Chief Staff Executives Median Bonus and Incentive Payouts Survey Results 2008 Executives with Payouts 63% Overall Survey Findings Range Median Average
2010 53%
$100 - $132,000 $2,500 $5,079 By Membership Size $1,000 $3,000 $6,000 $10,750
By Chief Executives Base Salaries Annual Base Salary $50,000 or less $50,001 - $100,000 More than $100,000 $1,800 $3,100 $9,000 By Years in Current Position Fewer than 2 2-5 10-15 More than 15 $1,100 $3,000 $2,250 $3,100 By Association Net Worth Less than $400,000 $400,000 - $999,999 $1 million or more n/a n/a n/a $1,000 $1,500 $5,000 $1,900 $1,500 $2,000 $2,500 Median Bonus $900 $2,000 $5,400
Full-time Chief Staff Executives Medical and Retirement Benefits Benefit 2008 Associations that pay for n/a medical coverage Associations that contribute 45% to retirement accounts
National Association of REALTORS 2010 Profile of Local Association Executive Compensation and Benefits
Section 1: Background
National Association of REALTORS 2010 Profile of Local Association Executive Compensation and Benefits
Section 1: Background
Responses by Region
Respondents are located in all 13 regions, as listed in Exhibit 1.1. For the survey report, the 13 regions are consolidated into six groups, as identified in Exhibit 1.2. By combining survey responses into these six survey regions, the report will provide more statistically meaningful results while continuing to address geographic diversity of NAR members.
Exhibit 1.1 Respondents by Region States in NAR Region CT, ME, MA, NH, RI, VT NJ, NY, PA DE, DC, MD, VA, WV KY, NC, SC, TN AL, FL, GA, MI, US Virgin Islands and Puerto Rico MI, OH IL, IN, WI IA, MN, NE, ND, SD AR, KS, MO, OK LA, TX AZ, CO, NV, NM, UT, WY AK, ID, MT, OR, WA CA, HI, Guam
Exhibit 1.2 Classification of Responses into Survey Regions States in NAR Combined Regions CT, ME, MA, NH, RI, VT, NJ, NY, PA KY, NC, SC, TN, AL, FL, GA, MS, USVI, PR MI, OH, IL, IN, WI, IA, MN, NE, ND, SD AR, KS, MS, OK, LA, TX AZ, CO, NV, NM, UT, WY, AK, ID, MT, OR, WA CA, HI, Guam 2008 18% 21% 22% 14% 17% 8% 2010 17% 20% 20% 17% 17% 9%
National Association of REALTORS 2010 Profile of Local Association Executive Compensation and Benefits
Membership Size
As in previous surveys, local associations are grouped into four categories by membership size (see Exhibit 1.3): Small, fewer than 500 Medium, 500 to 2,500 Large, 2,501 to 5,000 Mega, more than 5,000
Category Small Medium Large Mega
Exhibit 1.3 Responses by Membership Size Number of members served by 2008 the association Fewer than 500 500 2,500 2,501 5,000 5,001 or More 54% 34% 7% 5%
Exhibit 1.4 lists the net worth of the responding local associations by membership size.
Exhibit 1.4 Local Association Net Worth by Membership Size Membership Size Net Worth Range Median Average All $100 $11,238,645 $403,006 $1,009,678 Small $100 $1,500,000 $160,000 $259,524 Medium $37,506 $4,535,974 $913,870 $1,168,949 Large $348,949 $8,550,000 $2,642,673 $3,030,406 Mega $600,000 $11,238,645 $4,000,000 $4,384,478
National Association of REALTORS 2010 Profile of Local Association Executive Compensation and Benefits
Respondents provided average home values for single family homes in their areas as of January 1, 2010. Exhibit 1.5 shows average single-family home values by the six survey regions. The overall average for the survey is $204,338. The 2008 survey averages reflected the 2007 housing market. The decline in home values may result from the change in economic conditions between the two survey periods. However, although the two surveys had similar numbers of respondents, they are not necessarily the same local associations, meaning that the home value differences are not a precise comparison between the two surveys.
Exhibit 1.5 Local Associations Single-Family Home Values as of January 1, 2010 by Region Percent of Respondents Median Home Values $99,000 $100,000 $201,000$301,000 $401,000More than or less $200,000 $300,000 $400,000 $500,000 $500,000 2008 2010 18% 40% 28% 10% 2% 2% $370,753 $185,122 14% 31% 27% 4% 0% 63% 66% 63% 46% 18% 18% 2% 8% 40% 21% 1% 0% 2% 5% 11% 2% 1% 0% 0% 16% 2% 0% 0% 1% 34%* $353,524 $253,496 $271,467 $367,833 $502,564 $185,728 $140,545 $148,038 $229,753 $455,659
Survey Region
*Includes 23% between $500,001 and $750,000; 7% between $750.001 and $1 million and 4% over $1 million.
National Association of REALTORS 2010 Profile of Local Association Executive Compensation and Benefits
National Association of REALTORS 2010 Profile of Local Association Executive Compensation and Benefits
Exhibit 2.1 shows chief staff executive titles. Just over one third of the respondents, 34%, hold the title Association Executive. Among the other titles are Executive Director, Secretary Treasurer, Treasurer, Board President, Chief Staff Executive, Chief Staff Officer, Assistant VP, Financial Services Manager, Office Manager, MLS Administrator, Administrative Aide and Executive Secretary.
Exhibit 2.1: Respondents Titles
Virtually all respondents, 98%, are the chief staff executive for their association (see Exhibit 2.2).
Exhibit 2.2: Respondents Who Are Chief Staff Executives
Work Status
National Association of REALTORS 2010 Profile of Local Association Executive Compensation and Benefits
Most association executives, 79%, work full time, while only 16% hold the position as a parttime job. Few, 4%, are volunteers either paid or unpaid. See Exhibit 2.3. Of the 395 executives who hold the position on a full-time basis only six share the job with another associate and only five of the 81 part-time executives share the position with another associate.
Exhibit 2.3: Work Status
Respondents provided the length of time that they have held their current position (see Exhibit 2.4). The 2010 survey average is 8.7, same as in the 2008 survey and slightly higher than the average of 8.2 years in the 2006 survey.
Exhibit 2.4: Years in Current Position
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Although the responding chief staff executives have held their current positions 8.7 years, they have worked for a local REALTOR association 10.7 years, the median number that is slightly less than the 11.3 years in the 2008 survey (see Exhibit 2.5).
Exhibit 2.5: Years Working for a Local REALTOR Association
The average chief staff executive has worked 10.7 years for a local association, of which 8.7 was as the chief staff executive.
Education Level
As noted in Exhibit 2.6, about 45% of the chief staff executives have a Bachelors Degree or a more advanced degree, a higher percentage than the 38% in the 2008 survey.
Exhibit 2.6: Education Level
The most common response, by 30% of the chief staff executives, was some college.
Professional Designations
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Exhibit 2.7 shows that 44% of the chief staff executives have professional designations. About one in four hold RCE designations and just over one-third, 35%, earned e-PRO designations. The remaining chief staff executives hold various designations as indicated in Exhibit 2.8. The other designations include AHWD, ABR, CRS, CRA, CRB and GREEN designations.
Of the chief staff executives with professional designations, 36% hold more than one.
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National Association of REALTORS 2010 Profile of Local Association Executive Compensation and Benefits
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Respondents were asked to specify the amount budgeted in 2010 for the chief staff executives base compensation (annual salaries), excluding bonuses and incentives. The survey asked respondents to include the latest salary increase. This section separates budgeted annual salaries by work status, membership size, association net worth and other survey groupings to help local associations compare their compensation structure to others. See the Profile section at the beginning of this report for a comparison of 2010 findings with the 2008 survey. Exhibit 3.1 shows the range of 2010 budgeted annual salary amounts, the median and average amounts from the 491 respondents who answered this question in the 2010 survey.
Exhibit 3.1 Chief Staff Executive 2010 Budgeted Annual Salary (Excludes Bonus and Incentive) Range Median Average Total Respondents: 491 $600 - $275,000 $50,000 $59,629
In the 2008 survey, the median budgeted salary for all respondents was $57,100 and the average was $69,477.
Exhibit 3.2 separates the 2010 budgeted annual salaries by whether the respondent is working as a full-time or a part-time chief staff executive.
Exhibit 3.2 Chief Staff Executive 2010 Budgeted Annual Salary by Work Status (Excludes Bonus and Incentive) Annual Salary Range Median Average Total Respondents: 491 Full-Time $10,000-$275,000 $58,310 $69,411 Part-Time $1,699-$72,000 $14,976 $16,517
In the 2008 survey, the median budgeted salary for full-time chief staff executives was $57,590 and the average was $66,757.
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Exhibit 3.3 separates the 2010 budgeted annual salaries by the number of members in the local association. As expected, salaries progressively increase with membership size.
Exhibit 3.3 Chief Staff Executive 2010 Budgeted Annual Salary by Membership Size (Excludes Bonus and Incentive) Membership Size Small $600 $76,000 $26,000 $25,904 Medium $9,000 $213,575 $62,400 $68,652 Large $95,000 $185,000 $125,000 $127,675 Mega $113,000 $275,000 $160,000 $166,944
Chief staff executives earn $59,629 per year on average overall, but the average increases significantly by membership size.
Exhibit 3.4 shows chief staff executive base compensation by years in the current position. Exhibit 3.5 combines membership size and years in current position for a deeper comparison of median annual salaries using these two key factors combined.
Exhibit 3.4 Chief Staff Executive 2010 Budgeted Annual Salary by Years in Current Position (Excludes Bonus and Incentive) Years in Current Position Less than 2-5 5-10 10-15 2 $10,000 $2,400 $800 $600 $160,000 $200,000 $275,000 $220,900 $42,800 $53,801 $45,000 $53,869 $43,000 $56,914 $47,725 $54,996
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Exhibit 3.5 Chief Staff Executive 2010 Budgeted Media Annual Salary by Years in Current Position and Membership Size (Excludes Bonus and Incentive) Median Salary by Years in Current Position Less than 2 2-5 5 10 10 15 $32,520 $65,000 $152,500 $138,333 $33.600 $76,000 $136,000 $130,956 $30,500 $79,000 $110,022 $203,500 $37,000 $86,000 $141,500 $173,500
Exhibit 3.6 shows chief staff executive annual salary by the net worth of local associations separated into three ranges.
Exhibit 3.6 Chief Staff Executive 2010 Budgeted Annual Salary by Local Association Net Worth (Excludes Bonus and Incentive) Local Association Net Worth Annual Salary Range Median Average Total Respondents: 379 Less than $400,000 $600 - $131,237 $33,302 $34,719 $400,000 - $999,999 $28,520 $200,000 $60,000 $69,448 $1 Million or More $10,000 $275,000 $100,238 $110,493
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Exhibit 3.7 reveals annual salaries for chief staff executives with professional designations. The impact of formal education on chief staff executive annual salaries is shown in Exhibit 3.8.
Exhibit 3.7 Chief Staff Executive 2010 Budgeted Annual Salary By Professional Designations (Excludes Bonus and Incentive) Professional Designations RCE Percent with Designation Annual Salary Range Median Average Total Respondents: 319 42% RCE $10,000 - $275,000 $80,000 $86,646 e-Pro 35% e-Pro $13,572 - $250,000 $60,000 $72,708 CAE 13% CAE $44,000 - $275,000 $99,000 $112,490
Exhibit 3.8 Chief Staff Executive 2010 Budgeted Annual Salary by Education Level (Excludes Bonus and Incentive) Education Level Annual Salary Percent with Education Level Annual Salary Range Median Average High School 14% High School $800 $275,000 $33,302 $38,537 Some College 30% Some College $600 $213,575 $42,800 $49,239 Associates Degree 11% Associates Degree $10,500 $180,000 $38,831 $50,866 Bachelors Degree 26% Bachelors Degree $3,600 $219,531 $62,000 $69,611 Advanced Degree* 19% Advanced Degree* $3,600 $250,000 $80,000 $84,562
*Includes some graduate work, Masters Degrees, PhD and Law Degrees. Total Respondents: 490
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Exhibit 3.9 compares how chief staff executives receive increases in annual salaries. Note that about three quarters of the executives salary increases are based on annual merit increases. Of these, about half (36% overall) also factor in cost-of-living data to determine annual increases.
Exhibit 3.9: How Chief Staff Executives Receive Increases in Annual Salaries
The consumer price index, on which many base cost-ofliving increases, has increased 2.36% per year on average between 2006 and 2009. In 2009, the index fell -0.4% off the 2008 average.
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Employment Contracts: Exhibits 3.10 and 3.11 examine employment contracts. Of the chief staff executives, 39% have employment contracts (Exhibit 3.10). The most common contract has a two-year timeframe (Exhibit 3.11). About one-third of the contracts have an evergreen clause, which makes the contract automatically renewable each year (Exhibit 3.11). Exhibit 3.10: Employment Contracts
35% of the chief staff executive contracts have evergreen clauses for automatic renewal.
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The average bonus for fiscal year 2009 was $3,926, but chief staff executives working for larger associations earned an average of $14,543, the average for the mega-sized associations.
Exhibit 3.13 Chief Staff Executives Bonus or Incentive Payouts for 2009 Fiscal Year Range Median Average Total Respondents: 263 $100 - $85,000 $2,000 $3,926
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The following exhibits (3.14 through 3.16) separate 2009 fiscal year bonus or incentive payouts by membership size, by years in current position and by 2010 budgeted annual salaries.
Exhibit 3.14 Chief Staff Executives Bonus or Incentive Payouts for Fiscal Year 2009 by Membership Size Membership Size Payout Range Median Average Total Respondents: 263 Exhibit 3.15 Chief Staff Executives Bonus or Incentive Payouts for Fiscal Year 2009 by Years in Current Position Years in Current Position Payout Range Median Average Total Respondents: 263 Exhibit 3.16 Chief Staff Executives Bonus or Incentive Payouts for Fiscal Year 2009 by 2010 Budgeted Annual Salaries 2010 Budgeted Annual Salaries Payout Range Median Average Total Respondents: 263 $50,000 or Less $100 - $10,000 $750 $1,208 $50,001 - $100,000 $800 - $50,000 $5,400 $8,128 More than $100,000 $300 - $45,000 $2,308 $3,614 Less than 2 $300 $10,000 $1,900 $3,031 2-5 $150 $85,000 $1,500 $4,333 5-10 $100 $25,000 $1,500 $3,421 10-15 $250 $32,000 $2,000 $3,960 More than 15 $200 $12,000 $2,500 $3,428 Small $150 - $19,500 $700 $1,166 Medium $450 - $45,000 $3,000 $4,908 Large $1,000 - $15,000 $5,000 $7,351 Mega $3,200 - $85,000 $5,726 $14,543
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Performance Appraisals
About three-quarters of the responding chief staff executives, 76%, receive performance appraisals (Exhibit 3.17). An executive committee conducts the appraisal for 46% of the chief staff executives and a board of directors for 30% (Exhibit 3.18).
Exhibit 3.17: Chief Staff Executives Who Receive Performance Appraisals Each Year
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Benefits
Exhibit 3.19 lists components included in chief executives compensation packages. More than half of the executives receive health insurance, professional development or continuing education support and retirement benefits through a 401(k) plan, IRA or SEP.
Exhibit 3.19 Benefits Included in Chief Staff Executives Total Compensation Packages* By Annual Compensation Compensation Component Health insurance Professional development / continuing education IRAs / 401(k) / SEP Professional organization membership Dental insurance Life insurance Car allowance Long-term disability insurance Short-term disability insurance Club membership Spousal travel Technology allowance Deferred compensation Overall 72% 55% 53% 41% 40% 31% 28% 19% 16% 11% 10% 10% 4% Under $50,000 21% 23% 10% 8% 3% 4% 10% 1% 2% 4% 1% 2% 1% $50,001 $100,000 74% 48% 55% 42% 39% 27% 17% 11% 13% 8% 7% 8% 2% Over $100,000 97% 68% 86% 67% 81% 69% 60% 56% 38% 17% 28% 19% 10%
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Over three quarters of the local associations pay at least part of the cost of their chief staff executives medical plan (Exhibit 3.20). Half, pay for just their executives policy and 28% subsidize executives and dependents coverage. Most local associations pay 100% of the cost for medical coverage. The range, median and average percentage paid by local associations are shown in Exhibit 3.21.
Exhibit 3.20: Associations that Pay All or a Portion of Chief Staff Executives Cost for Medical Plan
Exhibit 3.21 Percent of Chief Staff Executives Cost for Medical Plan Paid by Local Associations Cost of Executives Cost of Dependents Percent Paid by Association Medical Plan Medical Plan Range Median Average Total Respondents: 254 20% - 100% 100% 94.6% 20% - 100% 100% 92.7%
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Retirement Contributions
Overall, 42% of the local associations contribute to the retirement accounts of their chief staff executives (Exhibit 3.22). Nearly all of the local associations classified as large or mega in terms of membership size contribute to their chief staff executives retirement accounts. As highlighted in Exhibit 3.23, the most common contributions are paid either as a fixed amount or structured as a matching contribution based on how much the chief staff executive contributes to his or her retirement account.
Exhibit 3.22: Associations that Contribute to Chief Staff Executives Retirement Accounts by Membership Size
Exhibit 3.23 How Local Associations Contribute to Chief Staff Executives Retirement Accounts by Membership Size Contribution to Retirement Accounts Matched Contribution Fixed Contribution Variable Contribution Total Respondents: 205 Membership Size Small 8% 8% 2% Medium 32% 35% 8% Large 44% 44% 3% Mega 40% 50% 5%
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Overall, the average contribution for the 2009 fiscal year was 5.2% and the median was 3.0% of annual earnings. Exhibit 3.24 separates these findings into ranges, medians and averages for the different types of contribution structure (i.e., matching, fixed and variable).
Exhibit 3.24 Percentage of Gross Pay Contributed to Chief Staff Executives Retirement Accounts Matching Contribution Range Median Average Total respondents: 200 1%-10% 3.0% 3.6% Fixed Contribution 1%-19% 5.0% 6.0% Variable Contribution .03%-40% n/a n/a
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Section 4: Staffing
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Section 4: Staffing
Full-time and Part-time Staff Positions
Exhibit 4.1 shows that 73% of the local associations have staff members, of which half, 50%, retain full-time employees (Exhibit 4.2). Exhibit 4.3 displays the distribution of staff members by membership size.
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Exhibit 4.3 Associations with Staff by Membership Size Membership Size Job Status Full-time only Part-time only Both No Staff Total Respondents: 459 All 36% 16% 21% 27% Small 23% 22% 9% 46% Medium 54% 10% 35% 1% Large 62% 38% 0% 0% Mega 40% 60% 0% 0%
Exhibit 4.4 offers insight into the balance between full- and part-time jobs within the local associations when factoring in membership size.
Exhibit 4.4 Number of Full-time and Part-time Association Staff by Membership Size Full-time Range Median Part-time Range All 0-57 2 Small 0-9 1 Medium 0-27 4 Large 2-24 10 Mega 6-57 17
0-6
0-3
0-6
0-25 1
0-4 2
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Exhibit 4.5 identifies the staff positions for full-time employees by membership size.
Exhibit 4.5 Full-time Staff Positions by Membership Size Full-time Employees by Membership Size Staff Positions MLS operations Accounting / bookkeeping / finance Membership / member services Administration Education / training Communications / public relations Professional standards Legislative / lobbying Customer service Store / lockbox administration Meetings / events Information technology Marketing Legal affairs Commercial International activities Other Total Respondents: 280 All 54% 50% 50% 48% 34% 24% 22% 21% 20% 19% 16% 16% 9% 3% 3% 2% 8% Small 61% 16% 24% 34% 7% 3% 1% 1% 10% 4% 8% 2% 2% 0% 0% 0% 3% Medium 49% 56% 55% 47% 35% 34% 10% 20% 23% 18% 18% 14% 6% 3% 2% 0% 6% Large 60% 87% 83% 73% 73% 50% 37% 53% 23% 40% 13% 33% 20% 7% 3% 0% 13% Mega 55% 90% 95% 75% 90% 80% 75% 65% 45% 60% 55% 60% 45% 5% 20% 25% 35%
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Exhibit 4.7 identifies the outsourced functions and unveils a correlation between outsourcing and employment for these functions.
Exhibit 4.7 Outsourced Services by Membership Size By Membership Size Association Services Legal affairs Accounting / bookkeeping / finance MLS operations Education Information technology Legislative / lobbying Leadership training Communications / public relations Marketing Diversity outreach and training International activities Administration Commercial Member outreach / field representative Meetings / events Membership / member services Other Total Respondents: 377 All 57% 45% 29% 26% 24% 18% 13% 3% 3% 1% 1% 1% 1% 1% 1% 1% 5% Small 56% 51% 32% 37% 17% 14% 15% 1% 3% 1% 1% 2% 1% 1% 2% 2% 5% Medium 62% 41% 24% 14% 20% 13% 10% 4% 3% 1% 2% 0% 0% 0% 1% 0% 4% Large 64% 24% 24% 8% 40% 20% 12% 16% 0% 0% 0% 0% 4% 0% 0% 4% 8% Mega 44% 22% 28% 6% 17% 22% 11% 11% 6% 0% 0% 0% 0% 0% 0% 0% 11%
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Income budgets for fiscal year 2010 are shown in Exhibit 5.1 and are separated by membership size in Exhibit 5.2 and by region in Exhibit 5.3
Exhibit 5.1 2010 Income Budgets Dues Range Median Average Total Respondents: 475 Exhibit 5.2 2010 Income Budgets by Membership Size Income Sources Dues $525 $440,000 $50,000 $71,763 Dues $179 $1,632,000 $254,000 $344,000 Dues $374,476 $2,392,806 $617,417 $771,896 Dues $505,500 $9,892,000 $1,120,000 $1,473,877 Non-Dues $25 $586,576 $50,789 $75,811 Non-Dues $232 $1,866,000 $156,060 $310,227 Non-Dues $35,100 $3,810,286 $522,075 $1,003,894 Non-Dues $173,375 $4,800,000 $1,519,057 $1,885,162 Total $550 $699,076 $108,500 $136,577 Total $412 $2,584,000 $588,608 $669,624 Total $422,875 $4,443,286 $1,841,000 $1,928,066 Total $1,091,533 $11,909,000 $2,584,057 $3,373,362 $179 $9,892,000 $102,000 $258,330 Non-Dues $25 $4,800,000 $93,300 $308,560 Total $412 $11,909,000 $208,000 $554,682
Membership Size Small Range Median Average Medium Range Median Average Large Range Median Average Mega Range Median Average Total Respondents: 465
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Exhibit 5.3 2010 Income Budgets by Region Region I-III Range Median Average IV-V Range Median Average VI-VIII Range Median Average IX-X Range Median Average XI-XII Range Median Average XIII Range Median Average Total Respondents: 470 Dues $4,760 $1,000,000 $140,000 $233,729 Dues $3,000 $2,392,806 $120,033 $325,174 Dues $3,500 $1,600,000 $67,500 $167,672 Dues $1,000 $1,685,314 $68,000 $159,571 Dues $525 $1,500,000 $100,000 $239,654 Dues $179 $9,892,000 $205,375 $621,484 Income Sources Non-Dues $2,000 $3,810,286 $105,000 $356,352 Non-Dues $375 $3,581,584 $128,645 $251,100 Non-Dues $25 $4,041,248 $105,000 $346,861 Non-Dues $300 - $2,082,406 $72,000 $185,719 Non-Dues $3,000 $1,333,466 $67,400 $181,500 Non-Dues $232 $4,800,000 $182,860 $731,558 Total $10,000 $4,443,286 $267,217 $581,421 Total $4,600 $5,183,026 $234,525 $567,270 Total $4,015 $5,500,000 $149,770 $481,032 Total $1,025 $2,708,131 $139,400 $323,314 Total $525 $2,300,000 $197,250 $449,482 Total $411 $11,909,000 $515,950 $1,365,232
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The survey asked respondents to rank their sources of income, excluding dividends from MLS revenue. Exhibit 5.4 aggregates the top five responses and averages the percentages that respondents provided for each income source as a percentage of their total revenue.
Exhibit 5.4 Top Five Gross Income Sources Percent of Revenue Budget Income Sources 1 2 3 4 5 Dues MLS Education Sale of products and services Interest and investment Ranking* 1.50 1.60 2.25 3.72 3.95 Median 50% 50% 5% 5% 2.3% Average 52.3% 44.5% 7.6% 6.4% 3.5% Range 1% - 100% 1% - 100% 0.05% - 35% 0.13% - 37% 0.01% - 28%
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Expenses
Expense budget for fiscal year 2010 are tabulated in Exhibit 5.5 and are sorted by membership size in Exhibit 5.6 and by region in Exhibit 5.7.
Exhibit 5.5 2010 Expense Budgets Expenses Excluding Expenses for Staff Salaries and Staff Salaries and Overhead Overhead Range Median Average Total Respondents: 475 Exhibit 5.6 2010 Expense Budgets by Membership Size Expenses Excluding Staff Expenses for Staff Salaries and Overhead Salaries and Overhead $75 $581,771 $75,600 $97,996 Expenses Excluding Staff Salaries and Overhead $209 $1,831,000 $350,000 $426,135 Expenses Excluding Staff Salaries and Overhead $254,222 $4,112,577 $1,038,000 $1,226,177 Expenses Excluding Staff Salaries and Overhead $216,788 $5,273,000 $1,288,070 $1,550,363 $25 $280,058 $41,382 $54,511 Expenses for Staff Salaries and Overhead $222 $777,000 $225,000 $266,497 Expenses for Staff Salaries and Overhead $185,000 $1,927,258 $644,500 $729,508 Expenses for Staff Salaries and Overhead $499,720 $6,342,000 $1,100,000 $1,527,589 $75 $5,273,000 $144,095 $339,804 $25 $6,342,000 $85,000 $228,281
Small Range Median Average Medium Range Median Average Large Range Median Average Mega Range Median Average
Total $100 $758,978 $123,000 $150,046 Total $431 $2.608,000 $615,500 $679,576 Total $439,222 $4,505,638 $1,897,000 $1,939,685 Total $1,084,955 $11,615,000 $2,110,656 $3,338,162
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Region I-III Range Median Average Region IV-V Range Median Average Region VI-VIII Range Median Average Region IX-X Range Median Average Region XI-XII Range Median Average Region XIII Range Median Average
Exhibit 5.7 2010 Expense Budgets by Region Expenses Excluding Staff Expenses for Staff Salaries and Overhead Salaries and Overhead $5,400 $4,112,577 $203,000 $377,711 Expenses Excluding Staff Salaries and Overhead $5,000 $2,978,225 $173,030 $373,503 Expenses Excluding Staff Salaries and Overhead $2,000 $4,000,000 $98,650 $283,626 Expenses Excluding Staff Salaries and Overhead $75 $2,067,866 $107,800 $229,474 Expenses Excluding Staff Salaries and Overhead $525 $1,477,218 $118,565 $241,146 Expenses Excluding Staff Salaries and Overhead $209 $5,273,000 $214,728 $721,422 $2,400 $1,807,826 $134,500 $247,941 Expenses for Staff Salaries and Overhead $1,200 $2,155,300 $89,000 $222,248 Expenses for Staff Salaries and Overhead $1,500 $1,842,518 $63,500 $182,691 Expenses for Staff Salaries and Overhead $25 - $1,402,615 $59,678 $122,936 Expenses for Staff Salaries and Overhead $1,200 $1,174,076 $75,000 $192,739 Expenses for Staff Salaries and Overhead $222 $6,342,000 $196,196 $563,551
Total $7,000 $4,505,638 $341,527 $621.296 Total $3,000 $5,133,525 $245,000 $592,333 Total $4,000 - $5,500,000 $161,539 $463,865 Total $100 - $2,784,043 $140,447 $338,215 Total $525 $2,308,523 $200,000 $452,185 Total $431 $11,615,000 $451,102 $1,274,593
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Respondents were asked to specify the percentage of their expense budgets that covered administration, staffing and salaries for fiscal year 2010. On average for the overall survey, the local associations set aside just under 40% of their expense budget for these expenses. Exhibit 5.8 sorts this expense category by membership size.
Exhibit 5.8 Percentage of Associations Total Expense Budgets Covering Administration, Staffing and Salaries by Membership Size Percentage of 2010 Budget Range Median Average Total respondents: 427 Membership Size All 3%-100% 39.0% 39.4% Small 3%-100% 36.0% 37.6% Medium 5%-78% 42.0% 42.2% Large 10%-86% 38.0% 43.2% Mega 25%-66% 45.6% 42.2%
The survey asked respondents to rank their expense items. Exhibit 5.9 aggregates the top five responses and averages the percentages that respondents provided for each expense as a percentage of their total expenses.
Exhibit 5.9 Top Five Gross Expense Items Percent of Expense Budget Expense Items 1 2 3 4 5 MLS Rent/mortgage/related property expenses Membership survey Travel Conventions/meetings Ranking* 1.44 2.49 2.79 3.18 3.21 Median 30% 9% 10% 5% 6% Average 32.2% 12.6% 14.5% 7.8% 8.1% Range 2% - 90% 0.5% - 70% 0.76% - 99% 0.5% - 75% 0.5% - 73%
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Index of Exhibits
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Exhibit 1.1 1.2 1.3 1.4 1.5 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17
Title Respondents by Region Classification of Responses into Survey Regions Responses by Membership Size Local Association Net Worth by Membership Size Local Associations Single-Family Home Values as of January 1, 2010 by Region Respondents Titles Respondents Who Are Chief Staff Executives Work Status Years of Service in Current Position Years Working for a Local REALTOR Association Education Level Chief Staff Executives with Professional Designations Professional Designations Held by Chief Staff Executives Chief Staff Executive 2010 Budgeted Annual Salary Chief Staff Executive 2010 Budgeted Annual Salary by Work Status Chief Staff Executive 2010 Budgeted Annual Salary by Membership Size Chief Staff Executive 2010 Budgeted Annual Salary by Years in Current Position Chief Staff Executive 2010 Budgeted Annual Salary by Years in Current Position and Membership Size Chief Staff Executive 2010 Budgeted Annual Salary by Local Association Net Worth Chief Staff Executive 2010 Budgeted Annual Salary by Professional Designations Chief Staff Executive 2010 Budgeted Annual Salary by Education Level How Chief Staff Executives Receive Increases in Annual Salaries Employment Contracts Length of Employment Contracts Chief Staff Executives that Received Bonuses for Fiscal Year 2009 Chief Staff Executives Bonus or Incentive Payouts for Fiscal Year 2009 Chief Staff Executives Bonus or Incentive Payouts for Fiscal Year 2009 by Membership Size Chief Staff Executives Bonus or Incentive Payouts for Fiscal Year 2009 by Years in Current Position Chief Staff Executives Bonus or Incentive Payouts for Fiscal Year 2009 by 2010 Budgeted Annual Salaries Chief Staff Executives Who Receive Performance Appraisals Each Year
Page 5 5 6 6 7 9 9 10 10 11 11 12 12 14 14 15 15 16 16 17 17 18 19 19 20 20 21 21 19 22
Section 1: Background
Section 3: Compensation
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Exhibit 3.18 3.19 3.20 3.21 3.22 3.23 3.24 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9
Title Who Conducts Performance Appraisals of Chief Staff Executives Benefits Included in Chief Staff Executives Total Compensation Packages Associations that Pay All or a Portion of Chief Staff Executives Cost for Medical Plan Percent of Chief Staff Executives Cost for Medical Plan Paid by Local Associations Associations that Contribute to Chief Staff Executives Retirement Accounts by Membership Size How Local Associations Contribute to Chief Executives Retirement Accounts by Membership Size Percentage of Gross Pay Contributed to Chief Staff Executives Retirement Accounts Associations with Staff Job Status of Staff Members Associations with Staff by Membership Size Number of Full-time and Part-time Association Staff by Membership Staff Full-time Staff Positions by Membership Size Part-time Staff Positions by Membership Size Outsourced Services by Membership Size Average Number of Properties Owned or Rented by Local Associations Performance of Property Management Activities by Local Associations Square Feet Managed by Local Associations Annual Rental Income from Managed Properties for Local Associations 2010 Income Budgets 2010 Income Budgets by Membership Size 2010 Income Budgets by Region Top Five Gross Income Sources 2010 Expense Budgets 2010 Expense Budgets by Membership Size 2010 Expense Budgets by Region Percentage of Associations Total Expense Budgets Covering Administration, Staffing and Salaries by Membership Size Top Five Gross Expense Items
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Section 4: Staffing
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