RBR-TVBR Excluvise Close-Up: The Radio Advertising Bureau has been cutting expenses in recent years, but new Executive Vice President Erica Farber will face some financial challenges at the organization.
Despite cost-cutting RAB posted a net-loss of nearly $155K in 2010, the latest year it has reported to the IRS as a non-profit organization.
We don’t know what sort of salary Farber will be getting, but RAB President and CEO Jeff Haley saw his total compensation fall only modestly in 2010 to $752K from $783K in 2009.
Revenues from contributions and grants fell to $3.6 million in 2010 from $6.9 million in 2009.
Within that, Membership dues fell only about $40K, but “all other contributions, gifts, grants” and such plunged to $17K from $3.3 million.
Program service revenue declined to $1.2 million from $1.9 million. So, total revenues dropped to $4.8 million in 2010 from $8.8 million in 2009.
Expenses fell to $4.9 million in 2009 from $8.7 million in 2009. The biggest chunk of that decrease was from cutting payroll by more than $2 million to $3.8 million from $6 million.
RAB made major cuts in its top executive staff in 2009. It eliminated the highest paid employee other than Haley as long-time veteran George Hyde exited, along with Mike Mahone, who was #4.
The latest reorganization, with RAB’s Membership, Professional Development and Services units all consolidated into one group under Farber, included the departure of Ron Ruth, who was the organization’s second-highest compensated executive in 2010, after Haley. As Executive Vice President of Membership, Ruth was paid a total of $297K in salary and other compensation.
The bottom line for RAB was that it spent $154,992 more than it took in for 2010. We’ll know in a few months how it did in 2011, but don’t be surprised if Farber does some more re-working on the expense side as she takes charge of most RAB operations as of January 1, 2012.
RBR-TVBR observation: RBR-TVBR has yet to examine other similar trade advertising bureau financial returns – it would seem logical and probably come as no surprise that their revenues too have declined.
Once you examine the revenue streams and the top compensation it will be up to RAB member stations to draw their conclusions as to the viability of today’s Radio Advertising Bureau. Our recommendation is for RAB members to post their comments below on your association or you can email your thoughts to [email protected]