The


National
Association
of
Realtors
(NAR)
has
spent
much
of
the
past
few
years
having
its
dirty
laundry
aired
across
public
domain
and
in
courtrooms.
Now
a
new
report
is
taking
aim
at
compensation
for
NAR
executives.

On
Monday,

The
New
York
Times
published
an
expose
about
the
lavish
perks
enjoyed
by
NAR’s
executives.
Chief
among
them
is
the
salary
of
former
CEO
Bob
Goldberg,
who
earned
$1.2
million
per
year
that
later
ballooned
to
$2.6
million.

Additionally,
the
Times
reported
that
Goldberg’s
contract
entitled
him
to
things
like
memberships
to
exclusive
country
clubs,
first-class
airfare
for
personal
travel,
expensive
car
allowances,
money
for
his
dog
to
travel
with
him
and
even
tickets
to
“Hamilton”
at
the
height
of
the
musical’s
popularity.

NAR
could
be
running
afoul
of
tax
law
given
that
it
is
a
nonprofit
trade
association,
the
report
claimed.

“It
is
highly
unusual
—
I
would
even
say
virtually
unheard-of
—
for
volunteer
leaders
and
officers
to
receive
compensation
at
those
levels,”
Jeff
Tenenbaum,
a
nonprofit
lawyer
in
Washington,
D.C.,
told
the
Times.
“Many
of
us
who
practice
association

antitrust
law
have
always
wondered,
‘How
can
they
get
away
with
this?’”

Using
NAR
funds
for
personal
benefit
might
be
a
violation
known
as
“private
inurement,”
even
if
the
spending
is
related
to
business
travel.
Private
inurement
could
result
in
NAR
losing
its
tax-exempt
status.

The
Times
sourced
its
story
through
tax
disclosures
and
former
NAR
executives
and
members
who
requested
anonymity
because
they
feared
potential
retaliation.

NAR
has
already
been
under
fire
from
its
membership
for
its
handling
of
the

$418
million
commission
lawsuit
settlement
agreed
to
in
March.
Frustration
also
appears
to
be
boiling
over
with

costly
dues
and

unpopular
membership
rules.

Some
Realtors
question
what
they
get
out
of
their
NAR
memberships,
but
rules
imposed
by
NAR
and
affiliates
at
the
state
and
local
levels
force
them
to
be
members.
Real
estate
agents
don’t
have
access
to
a
local

MLS
if
they’re
not
part
of
the
trade
association.

The
cost
of
fighting
antitrust
litigation
—
in
addition
to
the
$418
million
in
settlement
money
—
has
observers
questioning
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
lawsuit
in
Missouri.

The
trade
group
has
also
been
accused
of

discrimination,
sexual
harassment,
intimidation
and
blackmail
by

a
host
of
former
employees,
which
led
to
the

resignation
of
President
Kenny
Parcell
in
August
2023.

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