The IRS and NHRA, you gotta see this.

[Jason Oldfield]

Originally Posted by Toby Lang

Part of the complaint says that the NHRA compensation arrangements may be excessive.

As an example they use the 2006 compensation of Mr. Thomas Compton. In 2006 Mr. Compton was paid $712,317. They say the average compensation paid to CEOs at the ten largest trade associations was $642,447. So, Mr. Compton was paid 9.8% more than the average.

I don't know if the NHRA operates like a for-profit business or not, but Mr. Compton's salary doesn't seem that excessive to me when compared with the others. If he were making 30-50% more than the average I would say yes, that's excessive, but less than 10%?

Also, could it be possible that the anonymous client has the initials BN?


-Toby

Toby,

The complaint says that Compton made 10% more than the average of the TOP 10 LARGEST trade organizations...not 10% more than the average. It went on to say that the 75th percentile, or the average salary of the top 24 LARGEST trade organizations, was $621,750, meaning that Compton's total compensation was 24% above that average. It doesn't say what the absolute average of all not-for-profit trade organizations is, but my guess is that it is much less, probably in the $400,000 range. The complaint also does not say where NHRA ranks size-wise among all not-for-profit trade organizations.

[Chris DeGidio]

The NHRA "suits" are paid a lot more than they should be.My opinion.

[FINESPLINE]

Should make for a lot of good reading to go with the popcorn and soft drinks. Might find going to a alcoholic beverage more fitting to watch the dancing here. !

[Toby Lang]

Jason,

As I posted above:

Originally Posted by Toby Lang

Well, in the same paragraph it says:

"... we evaluated the comparable compensation data detailed in the American Society of Association Executives compensation report."

Also, Compton made 12.7% more than the 75th percentile not 24%.


-Toby

[Greg Hill]

Toby, it's not just Compton compensation which in 2008 was $771,632. Check out the rest of these, Peter Clifford $427,274, Graham Light $353,782, Dallas Gardner $319,073, Gary Darcy $393,774, John Siragusa $356,950, Linda Louie $285,703, Jerry Archmbeault $229,135, Dan Olson $230,255, and Glen Cromwell $202,368. Also for 2009 Glen Gray made $295,948.

[X-TECH MAN]

Originally Posted by Greg Hill

Toby, it's not just Compton compensation which in 2008 was $771,632. Check out the rest of these, Peter Clifford $427,274, Graham Light $353,782, Dallas Gardner $319,073, Gary Darcy $393,774, John Siragusa $356,950, Linda Louie $285,703, Jerry Archmbeault $229,135, Dan Olson $230,255, and Glen Cromwell $202,368. Also for 2009 Glen Gray made $295,948.

And you guys and girls just keep shoving the $$$$$$$$$$$$$$$ at them every year, every race, and dont even get kissed ! LOL I love it.

[Jason Oldfield]

Originally Posted by Toby Lang

Also, Compton made 12.7% more than the 75th percentile not 24%.

-Toby

Actually, we were both wrong Toby, it was 14.5%. But, in the end, it doesn't matter. Unless NHRA is in top 10 not-for-profit trade organizations in the U.S., they can't possibly justify that his salary isn't excessive. If you want to operate as a not-for-profit, that's fine, but you also have to show some restraint when it comes to your expenditures, which NHRA clearly has not done over the years.

[John Kelley]

Originally Posted by Toby Lang

Also, could it be possible that the anonymous client has the initials BN?
-Toby

That is what I was thinking !!! :-)

[Marvin Robinson]

Well, I hope this is not an opening of Pandora's box..... I would certainly like to see better practices on behalf of the Sportsman Racer from NHRA, but I wonder if this lawsuit will turn things in that direction, or have unintended consequences for all of us.

The Salaries quoted do seem excessive, but I don't buy for one minute that Dallas and Graham work 1 hour a week. Anyone who has run any type of organization larger than 5 people knows that the principal people involved put in many times the effort and hours that you would think they do, to make things happen. Having said that, 700K, 400K or more, may be excessive compensation for what they do, I don't profess to know enough about what kind of time & effort they actually expend, and whether the salary for those positions is justified. I DO know that I'm not real happy with how they have addressed (or failed to address) many issues on the part of the Non-Professional racer.

The salaries are only a small part of a larger problem... how well does the organization serve it's designated members (ALL of them, not just the pros), and what kind of relationship does it maintain with it's members, suppliers, affiliates and contractors? How well does it control it's expenses, and does it distribute it's services equitably and in a fiscally responsible manner?? Does it properly account for all of it's activities and finances??? How well this has been done in the past will have a direct bearing on the procession of events in this lawsuit, and the outcome(s) relative to the average racer. I hope for the best...

[Gary Smith]

Originally Posted by Marvin Robinson

Well, I hope this is not an opening of Pandora's box..... I would certainly like to see better practices on behalf of the Sportsman Racer from NHRA, but I wonder if this lawsuit will turn things in that direction, or have unintended consequences for all of us.

The Salaries quoted do seem excessive, but I don't buy for one minute that Dallas and Graham work 1 hour a week. Anyone who has run any type of organization larger than 5 people knows that the principal people involved put in many times the effort and hours that you would think they do, to make things happen. Having said that, 700K, 400K or more, may be excessive compensation for what they do, I don't profess to know enough about what kind of time & effort they actually expend, and whether the salary for those positions is justified. I DO know that I'm not real happy with how they have addressed (or failed to address) many issues on the part of the Non-Professional racer.

The salaries are only a small part of a larger problem... how well does the organization serve it's designated members (ALL of them, not just the pros), and what kind of relationship does it maintain with it's members, suppliers, affiliates and contractors? How well does it control it's expenses, and does it distribute it's services equitably and in a fiscally responsible manner?? Does it properly account for all of it's activities and finances??? How well this has been done in the past will have a direct bearing on the procession of events in this lawsuit, and the outcome(s) relative to the average racer. I hope for the best...

Statistics prove that any successful organization is always run by someone who truly loves and believes in the product/service they're providing. They reap the monetary rewards when their customers/clients are happy. But those who are motivated by money first, then the product/service suffers, ultimately driving away customers through dissatisfaction and sometimes animosity. All three of the top brass (Light, Gardner, and Compton) are about the money/opportunities over the love of what they do. The NHRA is a sick train and has been running on borrowed time and will derail unless someone knows how to turn it around.