Who is the CEO of AARP and what is their salary?
The answer to this question involves a recent leadership change and a look at the most recently available public data. Myechia Minter-Jordan was appointed CEO of AARP in November 2024, succeeding Jo Ann Jenkins. Compensation for the CEO position is publicly reported on the organization's annual IRS Form 990. For the 2023 fiscal year, the final full year for former CEO Jo Ann Jenkins, her reported total compensation was approximately $2.5 million, which included a base salary of around $2.38 million. These figures are publicly documented and provide the most recent snapshot of AARP's executive compensation.
It is important to understand that non-profit executive compensation is not static. AARP's Board of Directors determines the CEO's pay by assessing market-rate compensation for comparable leadership positions, considering factors like the organization's size, complexity, and mission-driven goals. This process is designed to be transparent and attract top talent, which is a common practice among large non-profits.
The complex financial structure of AARP
To fully understand why AARP's CEO compensation might seem high for a non-profit, one must look at the organization's financial structure. AARP is not a single entity but a web of affiliated organizations, including the non-profit parent organization and several for-profit subsidiaries, such as AARP Services, Inc.
The parent non-profit organization receives revenue from four main sources:
- Royalties: By far the largest revenue stream, these are fees paid by third-party companies, primarily insurance carriers like UnitedHealthcare and New York Life, for the right to use the AARP brand on their products. In 2023, royalties amounted to over $1.1 billion.
- Membership Dues: Annual membership fees from its tens of millions of members constitute a significant but smaller portion of its overall revenue.
- Publication Advertising: Revenue from advertisements in AARP's publications, including AARP The Magazine (the largest circulation magazine in the US) and the AARP Bulletin.
- Investment Income and Grants: Income from AARP's investments and grants also contribute to its finances.
This multi-faceted revenue model enables AARP to fund its extensive advocacy, informational resources, and member services while also supporting competitive executive salaries. Critics sometimes question the scale of this revenue, arguing that AARP's financial interests may sometimes conflict with its non-profit mission, but AARP maintains that revenue from its for-profit ventures is reinvested into its mission-related work.
Comparing AARP executive compensation
The compensation for a CEO of a non-profit is often compared to executives at similar organizations, but AARP's unique scale makes direct comparison challenging. For context, here is a table comparing elements of executive compensation between different organization types:
| Feature | Large Non-Profit (e.g., AARP) | Large For-Profit Corporation | Non-Profit Best Practices |
|---|---|---|---|
| Salary Basis | Reasonable and not excessive; comparable to other large non-profits. | Highly competitive, based on market rates, company size, and performance. | Based on comprehensive market analysis of comparable organizations. |
| Performance Incentives | May include performance-based bonuses tied to organizational goals and mission outcomes. | Significant portion of compensation often tied to stock performance and other financial metrics. | Incentives tied to fulfilling mission, achieving fundraising goals, or operational success. |
| Benefits | Standard benefits, including health, retirement, and supplemental plans. Perks are typically limited and transparent. | Extensive benefits, stock options, and often more generous perks. | Should be clearly defined and reported, and should not be excessive. |
| Oversight | Set by a compensation committee of the independent Board of Directors. Publicly disclosed on IRS Form 990. | Set by the board of directors; compensation is disclosed via SEC filings and is subject to shareholder scrutiny. | Reviewed and approved annually by the board, often with external expertise. |
This comparison highlights the different frameworks and accountability measures in place. For AARP, public filings and board oversight are key to maintaining its non-profit status, even as it generates substantial revenue. For a detailed look at how revenue is allocated, one can review financial reports published by organizations like Paddock Post, which analyze AARP's public filings.
AARP's mission and how compensation aligns
According to AARP's official mission statement, its purpose is to empower people to choose how they live as they age through advocacy, information, and service. The organization justifies its executive compensation by arguing that it needs to attract and retain highly skilled leaders who can effectively manage a complex, multi-billion-dollar enterprise dedicated to social change. AARP's operations, which include everything from publishing the largest circulation magazine to lobbying Congress on behalf of its members, require sophisticated management and strategic direction.
The organization maintains that the revenue generated from its commercial activities ultimately supports its non-profit mission. The board's role is to ensure that compensation packages are aligned with this overarching purpose while remaining competitive enough to secure capable leadership. This ensures that the organization remains a formidable advocate for its over 38 million members.
Frequently asked questions about AARP's CEO salary
Navigating the topic of executive pay at a non-profit can be complex. Here are answers to some common questions:
- How are AARP's revenue and expenses distributed? In 2023, with $1.7 billion in revenue, AARP's largest expenses included compensation ($397 million), advertising and promotion ($372 million), and fees ($300 million). This allocation demonstrates that a significant portion of revenue goes toward running a large and complex organization.
- Is AARP transparent about its finances? As a non-profit, AARP files an annual IRS Form 990, which is a public document detailing its finances, including executive salaries. This information is available for public scrutiny and analysis.
- How does the board ensure compensation is reasonable? AARP's Board of Directors follows standard non-profit governance practices, including using a compensation committee and benchmarking against comparable organizations to establish a 'rebuttable presumption' that the compensation is not excessive.
- Why is the CEO's salary so high for a non-profit? AARP's scale is unique. It operates a multi-billion dollar enterprise with over 2,000 employees and millions of members. The CEO's salary is benchmarked against executives managing organizations of similar size and complexity, which includes both non-profits and for-profit companies.
- Did the previous CEO's salary affect her retirement? Jo Ann Jenkins retired at the end of 2024 after leading the organization for a decade. Executive compensation packages often include long-term benefits and deferred compensation, which are separate from the annual reported salary.
- How can I find the most recent CEO salary information? The most reliable source for a non-profit CEO's salary is the latest annual IRS Form 990. These documents are filed each year and detail compensation for the previous fiscal year. You can often find summaries and analysis on financial news sites and non-profit watchdogs.
- What are AARP's largest sources of income? The organization's largest revenue source is royalties from third-party endorsements, particularly from insurance products. Membership dues are also a major revenue stream.
Conclusion
The CEO of AARP, a complex and multi-faceted organization, receives compensation that reflects the scale of its operations rather than a typical small non-profit. The last publicly disclosed figure for former CEO Jo Ann Jenkins in 2023 was approximately $2.5 million in total compensation. The new CEO, Myechia Minter-Jordan, will have her compensation figures reported in future IRS Form 990 filings. The organization's financial model, which includes significant revenue from for-profit subsidiaries, funds its extensive advocacy work and informs its executive compensation structure. While controversial to some, AARP's compensation practices are public and guided by its Board of Directors, aligning with its mission to serve its 50+ members.
For a detailed breakdown of AARP's financial reports and executive compensation, see this analysis.
