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Over the past several years, the National Association of Realtors (NAR) has been plagued by a series of missteps and scandals that have left its members questioning the organization’s leadership and integrity. From navigating disastrous lawsuits and costly settlement agreements to enforcing poorly conceived policies and rules, the organization’s leadership has demonstrated a pattern of negligence and mismanagement.
The recent multimillion-dollar settlement stemming from antitrust lawsuits is only one example of how NAR’s actions — or lack thereof — have left its members to pay the price, both financially and reputationally.
Now, yet another glaring issue has come to light: the exorbitant salaries paid to NAR’s so-called “volunteer” leaders. This issue isn’t just a matter of questionable ethics — it epitomizes the culture of waste and entitlement entrenched in NAR’s leadership.
How can an organization justify paying its “volunteers” six-figure salaries while members endure rising dues and a declining sense of trust? This is yet another example of the corruption that has driven NAR to this point, with implications that cannot be ignored.
The top 6 paid leaders in 2022: Salaries that defy volunteerism
NAR’s lack of transparency regarding leadership salaries (ironic for an organization that advocates transparency in real estate commissions) makes it difficult to find compensation details for 2023 or 2024. However, based on NAR’s Form 990 filing, NAR’s compensation structure for its leaders in 2022 clearly blurred the lines between volunteer service and paid professional roles.
Here are the top six paid individuals holding “volunteer” or leadership positions:
- Leslie Rouda Smith (NAR President): $413,556
- Kenny Parcell (President-Elect): $265,956
- Bill Malkasian (former officer): $256,951
- Dale Stinton (former officer/consultant): $250,000
- Nancy Lane (NAR Treasurer): $212,356
- Tracy Kasper (First Vice President): $181,362
- Charles Oppler (Immediate Past President): $162,344
Do these ‘volunteers’ earn more than their real estate practices?
When the high salaries paid to NAR leaders first came to light, NAR spokesman Mantill Williams defended the compensation, stating that these individuals “raise their hands to serve the industry,” which requires a “substantial time commitment, personal sacrifice and significant travel.”
While this may sound noble, it fails to address a fundamental question: Are these “volunteers” making more in their NAR roles than they did through their real estate practices? For many, the answer is yes.
With salaries exceeding hundreds of thousands of dollars annually, it is hard to argue that these roles align with the typical definition of volunteerism. If stepping away from their real estate businesses to serve the association is such a burden, as Williams states, perhaps they should not volunteer in the first place.
With 1.5 million members, surely there are successful, competent Realtors who could give back to the industry without demanding excessive compensation. Moreover, if these leaders’ real estate businesses were so poorly built that they cannot afford to step away temporarily, this raises serious questions about their qualifications to manage a national organization.
NAR deserves leaders who demonstrate genuine commitment to serving the industry — not individuals who treat these roles as opportunities for personal enrichment.
Recent investigations have uncovered several instances of lavish spending by the National Association of Realtors (NAR) leadership, raising concerns about the organization’s financial practices. Verified expenditures include:
- Broadway show tickets: NAR leaders purchased tickets to popular Broadway shows, such as Hamilton, for themselves and relatives while attending conferences in New York City.
- First-class airfare: Executives and high-ranking leaders frequently booked first-class flights for both themselves and their spouses during official travel.
- Luxury dinners: NAR credit cards were used to cover expensive dinners, including the purchase of $300 bottles of wine.
- Sports event tickets: Leaders received complimentary tickets to Chicago Cubs and Blackhawks games during their stays in Chicago.
- Spa treatments and golf outings: Corporate credit cards were utilized to pay for spa treatments and golf outings during work trips.
These expenditures have drawn sharp criticism from nonprofit watchdogs and raised serious questions about whether such spending is appropriate for a tax-exempt organization. Experts suggest that these practices may violate tax laws prohibiting nonprofit employees and leaders from using funds for personal benefit.
Once again, NAR leadership is paving the way for another lawsuit — this time with the IRS. As a nonprofit under Section 501(c)(6) of the Internal Revenue Code, NAR is strictly prohibited from using member dues for personal luxuries such as massages, golf outings and Broadway shows.
This blatant misuse of funds not only erodes member trust but also poses significant legal and financial risks to the organization.
Why does this matter?
The NAR’s leadership compensation structure is a glaring outlier, raising serious questions about the organization’s priorities and accountability. The stark disparity between NAR and other associations challenges its nonprofit mission and casts doubt on whether member dues are being used effectively.
When our leaders are paid salaries surpassing the average Realtor, it undermines the credibility and integrity of the organization.
To again address Williams’ point about the sacrifices NAR leaders make to fill their positions, let’s consider other professional associations. The American Bar Association, the American Medical Association, and the American Psychological Association — all representing highly skilled and busy professionals — have structured their organizations so their volunteers serve without salaries. If doctors and lawyers can volunteer their time to lead their associations without financial compensation, surely NAR leaders can do the same.
Conclusion: A call for reform
As a Realtor, you have to ask yourself: are you okay struggling to pay your annual dues, RPAC contributions, and other association fees so that our “volunteers” can be paid hundreds of thousands of dollars — while enjoying Broadway shows and spa treatments on your dime?
NAR must address these glaring issues. Members deserve transparency and accountability regarding how their dues are allocated. Leadership salaries should reflect the spirit of volunteerism and align with nonprofit best practices, as seen in other professional associations.
At a minimum, NAR should commit to publishing leadership salaries for 2023, 2024 and beyond because these figures are already known internally. Transparency in compensation is a crucial first step toward rebuilding trust with its members.
Just as NAR agreed in its recent legal settlement that agents must be more transparent with their commissions, the organization itself must uphold those same principles of openness and honesty. Leadership cannot demand transparency from its members while failing to apply those standards to its own financial practices.
Until these changes are made, NAR’s lavish spending practices will continue to erode trust and raise serious questions about its commitment to serving its members and the real estate industry rather than enriching its leaders.
The time for reform is now, and the responsibility lies squarely with NAR’s leadership to prioritize the best interests of their members over their own financial gain. Let this article serve as a call for NAR leadership to embrace the true spirit of volunteerism—like other associations—and take $0 in compensation.
Until they do, every member should demand accountability and pressure leadership relentlessly to make this change. Only by taking this bold step can NAR begin to rebuild trust, restore integrity, and allow the true leaders of the real estate industry — those willing to serve selflessly — to rise to the occasion.
Darryl Davis is the CEO of Darryl Davis Seminars. Connect with him on Facebook or YouTube.