NAR’s $2.6 Million CEO Salary and Lavish Perks Spark Tax Law Concerns

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Bob Goldberg Former CEO

The National Association of Realtors (NAR) is once again facing controversy, this time over extravagant executive compensation. A recent exposé published by The New York Times has shed light on the lavish perks enjoyed by former CEO Bob Goldberg, whose salary grew from $1.2 million to $2.6 million. The report also details a range of personal expenses covered by NAR, including memberships to exclusive country clubs, first-class airfare for personal travel, a car allowance, and even tickets to Hamilton during its Broadway peak. Additionally, Bob Goldberg’s contract included provisions for his dog’s travel expenses.

NAR, a nonprofit trade association, may face scrutiny over potential violations of tax law, specifically regarding “private inurement,” which prohibits nonprofit organizations from using funds for personal benefit. Experts, including nonprofit lawyer Jeff Tenenbaum, have raised concerns over the scale of Bob Goldberg’s compensation, calling it “virtually unheard-of” for nonprofit executives.

This latest scandal involving Bob Goldberg comes on the heels of significant legal and financial challenges for NAR. The organization recently agreed to a $418 million settlement over a class-action commission lawsuit and has faced increasing member dissatisfaction with rising dues and controversial membership requirements.

Bob Goldberg’s tenure has been marked by both financial and ethical controversies, casting a shadow over NAR’s reputation. With ongoing allegations of discrimination, harassment, and misconduct, which contributed to the resignation of its president, Kenny Parcell, in August 2023, Bob Goldberg’s leadership choices have been brought under intense scrutiny.

Moreover, the compensation practices during Bob Goldberg’s time as CEO have raised red flags about NAR’s governance. The lavish benefits and high salary for Bob Goldberg have drawn criticism from both members and financial watchdogs, with some calling for a deeper investigation into how funds were allocated under his leadership.

As Bob Goldberg’s name continues to dominate discussions about NAR’s financial woes, the organization finds itself grappling with its tax-exempt status and public image. NAR’s leadership, shaped heavily by decisions made during Bob Goldberg’s era, will likely remain under examination as public and legal scrutiny intensifies.

Ultimately, the controversies surrounding Bob Goldberg’s compensation and the broader issues at NAR highlight the challenges faced by nonprofits when balancing executive incentives with member trust and ethical governance. Moving forward, the organization will need to address these issues to rebuild credibility and trust among its members, many of whom feel let down by Bob Goldberg’s leadership.

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Goldman Downgrade Hits Redfin Stock

Redfin’s stock took a 4.5% hit Monday morning after Goldman Sachs downgraded the online real estate brokerage from “Neutral” to “Sell.” Analyst Michael Ng cited several factors weighing on the company’s outlook.

First, he pointed to ongoing issues with home affordability, which he believes could hinder a housing recovery. U.S. home sales have already been sluggish as of September. Ng also highlighted increasing pressure on agent commissions, which could hurt Redfin’s revenue and make it less competitive as rivals lower their rates.

Competition from Zillow, especially in the rental market, also played a role in the downgrade. Ng noted that Zillow’s momentum in rentals could challenge Redfin’s position in that sector.

Lastly, Ng flagged Redfin’s valuation as a concern, with the company trading at a premium 88x 2025 EV/EBITDA, far higher than rivals like Compass and Zillow.

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MLSs Use AI to Enforce Rules

Multiple Listing Services (MLSs) are turning to artificial intelligence to catch agents attempting to skirt new commission settlement rules stemming from the National Association of Realtors (NAR) antitrust case. The settlement bans blanket offers of compensation for buyer agents on MLS platforms, a common practice where agents previously offered commissions like 3%. Now, agents are finding creative ways to disguise compensation offers, using subtle tricks like adding the number “three” into photos or slightly adjusting listing prices.

To combat these tactics, MLSs are investing in advanced compliance tools that integrate AI and computer vision. These systems can flag violations in real-time, automatically scanning photos for subtle clues—like dice on a coffee table set to three or hidden agent contact information.

John Heithaus of Ocusell, a compliance software firm, notes that compliance has become a top priority for MLSs since the Department of Justice could step in with penalties for violations. Several companies, including Restb.ai and VestaPlus, are offering photo-compliance tools powered by AI, helping MLSs ensure adherence to the new rules.

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