The next NAR scandal – extravagant executive perks – is here
The National Association of Real Estate Agents (NAR) has spent much of the past few years airing its dirty laundry in the public domain and in courtrooms. Now a new report focuses on the compensation of NAR executives.
On Monday, The New York Times published an expose on the lavish benefits enjoyed by NAR executives. Chief among them is the salary of former CEO Bob Goldberg, who earned $1.2 million per year, which later increased to $2.6 million.
In addition, the Times reported that Goldberg’s contract entitled him to such things as memberships to exclusive country clubs, first-class airline tickets for personal travel, expensive car allowances, money for his dog to travel with him and even tickets to see “Hamilton” at the height of his career. the popularity of the musical.
NAR could be in violation of tax laws because it is a nonprofit trade association, the report said.
“It is highly unusual — I would even say virtually unheard of — for volunteer leaders and officers to receive compensation at that level,” Jeff Tenenbaum, a nonprofit attorney in Washington, D.C., told the Times. “Many of us in antitrust law have always wondered, ‘How can they get away with this?’”
Using NAR funds for personal gain can be an offense known as “private insurance,” even if the expenses are related to business travel. Private insurance could cause NAR to lose its tax-exempt status.
The Times based its story on tax returns and former NAR executives and members who requested anonymity because they feared possible retaliation.
NAR is already under fire from its members for its handling of the $418 million settlement agreed in March. The frustration also seems to be boiling over due to the expensive membership fees and unpopular membership rules.
Some real estate agents wonder what they get out of their NAR membership, but rules imposed by NAR and affiliates at the state and local level force them to be members. Real estate agents cannot access a local MLS if they are not part of the trade association.
The cost of fighting antitrust litigation — in addition to the $418 million in settlement money — has observers wondering 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 case in Missouri.
The trade group has also been accused of discrimination, sexual harassment, intimidation and blackmail by numerous former employees, leading to the resignation of president Kenny Parcell in August 2023.
