by Chris Frates - National Journalsyndication.nationaljournal.com/events/Membership... · 2012-05-30 · Insurance $1,313,887 Banking/Finance $871,697 Food/Beverage $856,163 Communications/IT

Paid to Juggle: A Profile of Successful Trade Association Executives

by Chris Frates Updated May 29, 2012

Presentation Supported by Download a customizable version of this presentation at: http://nationaljournal.com/membership/presentations

Roadmap of Our Discussion:

1

A Profile of Successful Trade Association Executives

I. Salary Survey Overview

II. Trade Association 2.0

III. Profiles of Success

IV. The Perfect Leader

Biennial Salary Survey:

I. Salary Survey Overview: About the Salary Survey

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✓ Trade Associations

Labor Unions

Public Interest Groups

Think Tanks

Professional Societies

✓

✓

✓

✓

•  Provides salary and compensation information for heads of more than 500 organizations with significant DC presence

•  Salary information taken from IRS Form 990 – tax-exempt organizations required to submit and make public

•  Compensation also includes bonuses and other monetary incentives

•  Due to the timing of IRS documents, most information in report is for calendar year 2010

Salary Survey Covers:

Source: National Journal and CEO Update, Apr 7, 2012, Biennial Salary Survey Issue.

with

Healthcare and Financial Giants Drive Top Earning Sectors

I. Salary Survey Overview: Compensation By Sector

3

Bottom Earning Sectors

Sector Median Executive Compensation

Insurance $1,313,887

Banking/Finance $871,697

Food/Beverage $856,163

Communications/IT $728,442

Sector Median Executive Compensation

Government $350,305

Natural Resources $342,936

Public Interest Groups $341,019

Agriculture/Livestock $324,394

Top Earning Sectors


Executive Pay Runs the Gamut in Washington Men and Trade Association Executives Are Top Earners

I. Salary Survey Overview: What Sets the Highest Earners Apart

Public Interest 15%

Prof. Societies 19%

Trade Associations 63%

Think Tanks 3%

Unions 1% Female

13%

Male 87%

Top Quarter Pay Equal or Greater Than $729,000

4

Public Interest Groups 38%

Prof. Societies 29%

Trade Associations 24%

Think Tanks 3%

Unions 10%

Female 21%

Male 79%

Bottom Quarter Pay Less Than $320,000

Bottom Earning Organizations

Top Earning Organizations


Snapshot of CEOs

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I. Salary Survey Overview: Snapshot of CEOs

Highest-Paid Billy Tauzin (former)

Pharmaceutical Research and Manufacturers of America

$11,578,956

Highest-Paid Female Tracy Mullin (former)

National Retail Federation $3,103,837

Largest Organization* Gail J. McGovern American Red Cross

$1,032,022

Highest-Paid Think Tank Officer Edwin J. Feulner Heritage Foundation

$1,098,612

Longest Serving Edward Crane (1977)

Cato Institute $488,257

Lowest-Paid (full year)

Margaret Baptiste National Active and Retired

Federal Employees Association $93,757

Top Quarter Upper Quarter Lower Quarter Bottom Quarter

*Measured by organization’s total revenue in tax year 2010.



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II. Trade Associations 2.0



Tectonic Shift in How Lobbyists Influence

Trade Association 2.0: The New Normal

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A Whole New Set of Skills Is Required

“The days of having one relationship that will make or break an industry doesn’t

exist anymore.” - Leslie Hortum, Executive Recruiter, Spencer Stuart

Modern Trade Association Checklist:

Monitor

Shape

Protect

Collective Reputation of Members

✓

✓

✓

Surround Sound Campaigns

Source: National Journal, Apr 7, 2012, “Paid to Juggle,” Chris Frates.

Traditional Lobbying

•  Golden Rolodex

•  Meetings with members

•  DC centric

•  Traditional lobbying

•  Multi-platform, social media marketing campaigns

•  Local grassroots focus

Trade Association 2.0 Trade Association 1.0

A Good Inside-Beltway Game Isn’t Enough – Moving Constituents to Act Moves Mountains

Trade Association 2.0: The Never Ending Story

8

Shaping Public Opinion Is an Effective Lobbyist’s Best Friend

“With public sentiment nothing can fail. Without it, nothing

can succeed.”

“Now, it’s a never-ending conversation between our industry and the public…[we] engage the debate 24/7, nonstop.”

Back to the Future

-  Jack Gerard President and CEO American Petroleum Institute

•  Social media has reinvented neighbor-to-neighbor communication •  Social platforms have become a necessary tool for countering criticism or rallying allies

•  Explosion of social media, e-mail, and other Web-based communication have revolutionized the ability to organize and mobilize armies of grassroots supporters


Boards Are Much More Engaged and Looking at the Bottom Line

Trade Association 2.0: Run It Like a Business

9

“Back in the day, people just mailed their checks to Washington, and they didn’t know what [the association] did with it, and they didn’t care. Now, boards are much more engaged and involved with their CEOs and demanding performance.”

Boards Are Linking Executive Compensation to Performance-Based Outcomes


-  Pat Cleary, President, National Association of Professional Employer Organizations

“There’s this whole pressure to be the substantive and credible spokesperson, to run the organization…like a business and decrease the reliance on dues with programs, products, and services that supplement the revenue stream.”

-  Leslie Hortum, Executive Recruiter, Spencer Stuart


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Steve Miller, President and CEO, Relies on Business and Campaign Management Expertise

III. Profiles of Success: ACCCE

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“The image of coal in the mid-1990s was a blank board that was going to be written on by somebody.”

-  Steve Miller, President and CEO, ACCCE

Earth Week 2000

$8M communication and advocacy effort

launches

2007

Launched $35M national print, online, social media, television and grassroots campaign

combined with traditional lobbying

Clean Coal establishes position in national

conversation as clean energy choice


American Coalition for Clean Coal Electricity

2008

Surround Sound Approach Drives Results

III. Profiles of Success: ACCCE

12

American Coalition for Clean Coal Electricity

McCain Supporters Wearing Clean Coal Hats at 2008 Rally

“Clean coal technology is something that can make America energy independent…”

Senator Barack Obama 2008 Presidential Campaign

Source: National Journal, Apr 7, 2012, “Paid to Juggle,” Chris Frates; American Coalition For Clean Coal Electricity Website, 2012.

API has used e-mail, forums, data banks, and local organizing to build a network of more than 11 million people not affiliated

with the oil and gas industry.

Jack Gerard of API Looked to Obama’s 2008 Social Media Campaign For Insights on Igniting Grassroots

III. Profiles of Success: API

13

American Petroleum Institute

Source: National Journal, Apr 7, 2012, “Paid to Juggle,” Chris Frates; American Petroleum Institute Website, 2012.

API “Vote 4 Energy” Online Offerings to Empower Grassroots


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The Perfect Leader Is a Campaign Manager / Business Executive Hybrid

IV. The Perfect Leader: A Checklist

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Comfortable running a multi-platform campaign and reading P&L sheets

Perfect Association Leader Checklist:

Issue expert and has technical knowledge of industry

Credible industry spokesperson with a keen strategic vision

Understands Washington and connected to Washington players

Runs a profitable business while managing competing members’ needs

Leads, recruits, and retains a top-notch staff

✓

✓

✓

✓

✓

✓


The Future of Influence: A Surround Sound Evolution

IV. The Perfect Leader: Frates’ Forecast

16 Source: National Journal, Apr 7, 2012, “Paid to Juggle,” Chris Frates.

Amplified Direct Lobbying of the People

Increased Spending to Frame Issues During Elections

Much More Attention Paid to Voter Sentiment

J K L

Surround sound campaigns will lead to:

by Chris Frates - National Journalsyndication.nationaljournal.com/events/Membership... · 2012-05-30 · Insurance $1,313,887 Banking/Finance $871,697 Food/Beverage $856,163 Communications/IT

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