But The Next Transition Was (Surprisingly)  Far More Cost-Effective Thanks To Pelton Refusing Compensation

With the recent public publication of EAA's 2011-2012 IRS Form 990s, details are emerging that show that their first major leadership transition in recent years (in 2011), was a costly one. All told, for the period ending February 29th, 2012, EAA expended some 2,250,395 for the top eight positions specified in their IRS documentation. Some $247,977 was paid out in bonuses, while another $247,390 was listed as 'other reportable compensation.'

A rather hefty $947,242 was paid to just two persons.... Rod Hightower and Tom Poberezny... even though Tom departed EAA some 6 months before the end of the period for which this 990 was filed. While Tom's compensation was listed as part of EAA's IRS report, we understand that the funds were actually reimbursed by monies coming from the EAA Foundation, according to EAA's accounting folks. In the previous full year of Tom Poberezny's leadership, he collected a total of $569,882 for his services.

For the period ending in February of 2012, EAA's total assets amounted to $36,942,983 -- of which $19,967,233 was listed among their total liabilities and $16,975,750 comprised their Net Assets for the year.

And while the most recent report would not have reflected this, EAA answered a number of questions beyond the scope of this reporting period (something that AOPA has refused to do) and revealed one particularly surprising detail... that in the transition period since the departure of Rod Hightower last fall, EAA Chairman Jack Pelton is taking NO salary or compensation as he guides EAA through this somewhat difficult period.

While Pelton's direct expenses are being reimbursed, Pelton expressed that, "EAA is an organization that has been part of my life for many years. My Dad was a member of Chapter 1 in California. I strongly believe in the mission of EAA and its culture. I'm happy to offer what I can to keep moving EAA forward. As the EAA Chairman of the Board holds a key leadership role but is also a volunteer position, I didn't feel it would be right to accept a salary while working with our excellent board and the staff in Oshkosh with the additional duties of CEO. It is part of, as they say, being all in and committed."

For the period ending 2/2012, Hightower was paid, individually, $482,815 -- comprising a base compensation of $346,672, with a bonus of $43,575 and other reportable compensation of $72,360, but may not comprise a full year's salary and other compensation. This number is about half the total compensation paid by AOPA to Craig Fuller in the last Form 990 we were able to inspect.

EAA Founder, Paul Poberezny, still receives some $108,115 in compensation from EAA where he is listed as its Founder and a Director. 

Aero-Analysis: ANN has received the latest IRS forms recently and are looking over them (both for EAA and the EAA Foundation) for more details and analysis of this pivotal organization. We must note however, that thus far, EAA has not ducked ANY of the questions or inquiries we've made (unlike AOPA who has become downright threatening when questioned), and that we are particularly pleased by the recent announcement that EAA will make their annual membership meeting far more accessible and timely than it has been in the past. What we see, so far, is an organization that has had some serious difficulties and a tough transition, trying to make the right decisions in the midst of internal and external conditions (a tough economy and even more difficult political climate). Progress seems to be occurring slowly... but the openness we've experienced, of late, and the decision to be more accessible to its membership are part of a slow trend in the right direction -- which we encourage. We'll keep you apprised as to what we learn from here.

FMI: www.eaa.org, www.irs.gov