AOTA and NBCOT Financials: Is the NBCOT CEO Overpaid??

I went down a research rabbit hole looking into the financials for health care associations and non-profits, including the NBCOT and AOTA. I found some very interesting data…

NBCOT

$16.8M revenue – $13.5M expenses = $3.3M net

The NBCOT is a 501(c)(6) and their revenue was $16.8M. They have 44 employees. Their more interesting revenue consisted of $13.5M in program services, $1.4M in investment income and dividends. Their expenses included $1.3M in compensation to officers (see below), $3.9M in non-officer salaries and wages, $353K in pension and retirement, $365K in other employee benefits, and $148K in legal fees.

Thankfully $874K goes towards IT expenses, so this is a good sign. You don’t want them to get hacked and their database compromised.

AOTA

$30.4M revenue – $18.9M expenses = $11.5M Net

The AOTA is also a 501(c)(6) and their revenue was $30.4M. They have 84 employees. Their revenue consisted of $13.7M in program services, $415K in investment income and dividends, $411K in royalty revenue, $13M from sale of non-inventory assets, $1.8M in sales from inventory, and $577K in miscellaneous revenues. Their more interesting expenses included $1.7M in officer compensation, $7.3M in non-officer salaries and wages, $203K in pension/retirement, $555K in employee benefits, $628K in payroll taxes and $262K in legal fees.

The AOTA spent $1M in office expenses, $154K in marketing, $972K in IT, and $597K in travel. That’s a lot for travel it seems. Perhaps a lot of it goes towards the conferences?

The Big Picture

Looking at the officers for AOTA and NBCOT. The top officer for the NBCOT Paul Grace got paid $1M compared to the AOTA’s Christopher Bluhm’s $336K. That’s a huge difference considering the AOTA made $11.5M while the NBCOT only $3.3M net! Is the NBCOT’s top officer overpaid? For more context, I looked into the top officers at other related health associations.

The APTA’s ($50M revenue – $48M expenses = $2M Net) top officer, Justin Moore who is their CEO got compensated $435K, followed by their COO and VP Mandy Frohlich with $251K. Their CFO was compensated $247K. This seems pretty reasonable.

Even the ASHA with their impressive revenue of $66M – $64M in expenses = $2M Net had their CEO Arlene Pietranton compensated $565K.

So NBCOT’s CEO got paid double that of most other CEOs despite having similar net compared to all the other associations. For other associations, they also did not split off like OT did with from the AOTA into the NBCOT. Keep in mind that AOTA has double the number of employees (more money to compensate employees) compared to NBCOT’s 44 (more money back to the officers).

I think the NBCOT’s  ceo is overpaid.

Investments

Let’s take a closer look at the financials now. Organizations often invest in their future such as in stocks and other assets.

We can see that the NBCOT has double the amount of investments and securities compared to the AOTA! The AOTA only recently started to ramp up their investments with a staggering 999%-fold increase year over year.

If you look at the description, the NBCOT’s is only like 1 paragraph, compared to the AOTA’s multi-page description

What is the NBCOT CEO and the NBCOT itself doing to advance the OT profession? They’re certifying and continue to certify and are setting standards of practice? States technically do this, unless they strictly follow the NBCOT.

I don’t even use the NBCOT itself when it comes to CEUs. I use third-party sources that are much better in my opinion. This is why I am choosing not to re-certify with the NBCOT anymore and to just become an OTL. But do your own research before you do this as it may have some consequences depending on the state that you are licensed in.

Sources

https://www.causeiq.com/organizations/american-occupational-therapy-association,131526422/

https://www.causeiq.com/organizations/national-board-for-certification-in-occupational-t,521620299/

 

Jeff is a licensed occupational therapist and lead content creator for OT Dude. He covers all things occupational therapy as well as other topics including healthcare, wellness, mental health, technology, science, sociology, and philosophy. Buy me a Coffee on Venmo.