AARP

“Section 4. Terms. Paragraph (a) was revised to state: Directors shall serve for a term of two years. Terms start at the beginning of the biennium, which begins immediately after the regularly scheduled Board of Directors meeting at mid-year of each even-numbered year. Directors are eligible to serve up to an additional three terms. The Board may elect to waive the four-term limit if the Board determines that the retention of the director will better enable the Board to carry out its duties. If the CEO is elected as a director, he or she is not subject to a limitation on number of terms; however, the CEO's term shall immediately cease upon no longer serving as the CEO. Paragraph (b) was deleted and paragraphs (c) and (d) were revised to (b) and (c).”

“The Form 990 is prepared and reviewed in AARP's internal tax department. The return is then put through a secondary review which includes the AARP Controller and AARP General Counsel. After this thorough review process, the Form 990 is distributed to the Board of Directors for their review. After all issues are addressed the return is reviewed by the Chief Operating Officer prior to electronically filing with the Internal Revenue Service.”

“Annually, all board members and employees (including officers) are required to review the Code of Conduct, formally acknowledge their understanding of the Code, and disclose any real or potential conflicts of interest. Disclosures are reviewed by appropriate management (or in the case of a board member, the Board Chair, the Corporate Secretary's Office, and if necessary, the Governance Committee), and the Ethics & Compliance Office. The appropriate resolution plan is implemented (for example, recusal from participating in any deliberations and decisions relevant to the disclosure). The Ethics & Compliance Office monitors compliance (with the assistance of the Corporate Secretary's Office for board members) with these requirements and ensures proper follow-up as needed.”

“AARP considers relevant for-profit and not-for-profit data since this is the landscape in which AARP competes for talent. Establishing the appropriate compensation for positions and jobs considers external market pricing (where possible) from an independent, third party compensation consulting firm, internal criteria, and an individual's actual performance and contribution. Internal criteria are based on a standard approach that measures the internal value of positions, including: complexity and scope of responsibility, skill set and competencies, education and experience, and the reporting relationship of the position. An individual's actual performance and contribution is measured through AARP's performance management approach and then rewarded through AARP's annual base pay merit and incentive awards programs. For the CEO, the Compensation Committee, which is comprised of independent directors, engaged an independent third-party compensation consultant to review and report on the competitiveness and reasonableness of the CEO's total remuneration. Based on that report, the Compensation Committee recommended that the Board of Directors approve of the CEO's remuneration and after review and discussion, the independent members of the Board of Directors approved the Committee's recommendation. These deliberations and actions were recorded in the Committee and Board minutes. For the Executive Vice Presidents (listed in Part VII), the compensation recommendations of the CEO are provided to the Compensation Committee together with external comparability data provided by an independent third-party compensation consulting firm. The Compensation Committee reviewed and approved the 2020 recommendations, and its deliberations and action were recorded in the Committee's minutes.”

“AARP makes its Form 990 available on its website at www.aarp.org or upon request to the General Counsel's Office. AARP's audited financial statements and conflict of interest policy are also available on its website at www.aarp.org. AARP's Form 1024 will be made public upon request to AARP's Office of General Counsel. All other governing documents will be made available to the public in the event those documents are included in a filing with the Internal Revenue Service.”

“AARP has a standard 40 hour work week and are the average hours disclosed on Form 990. Officers, key employees, and highest compensated employees often work in excess of that amount.”

“Consulting and Professional Services: Program service expenses 209,049,281. Management and general expenses 12,499,882. Fundraising expenses 460,333. Total expenses 222,009,496. Member Call Centers: Program service expenses 17,497,441. Management and general expenses 0. Fundraising expenses 0. Total expenses 17,497,441.”

“Income from Terrell Place Condo Association K-1s -5,330. Actuarial adjustments for Pension and PRHB plan -92,260,341.”

“The AARP Insurance Plan is a grantor trust established by an Agreement and Declaration of Trust for the purpose of making group health insurance and other health-related products and services available to AARP, Inc. members. Agreements between AARP, Inc., AARP Services, Inc., and several insurance companies enable AARP-branded insurance products to be made available to AARP members. At the direction of the third party insurance carriers, the Plan pays AARP, Inc. a portion of the total premiums collected for the use of its intellectual property, which is reported as royalties in the consolidated statements of activities.”