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DMA - Fire Everyone but CEO sees 52% raise

April 23, 2009

From time to time we allow guests to post an article, in this case it’s under my username, however I didn’t write it.. but I do support what this individual wrote, the DMA has seen massive layoffs, but yet the CEO is making bank, literally. Read the story below:

General Motors, Chrysler… …and the Direct Marketing Association … Revenue declines, staff cuts and huge salaries and increases for the CEO

If that headline caught your attention, it was meant to. Our investigative reporter has uncovered some amazing similarities between the US auto industry, and the leading industry association for direct marketers, the Direct Marketing Association (DMA).

Like US car companies, the DMA is rapidly becoming irrelevant to the marketing industry. Newer, more relevant organizations like Ad-Tech, OMMA, e-Marketing Association, etc. are taking away membership, revenues… and most importantly, credibility. They are the Toyotas and Hondas of the marketing world.

As membership and revenues continue to drop off, the DMA recently reported that it laid of a third of its staff in the last 6 months. Now get this. At the same time, their CEO, John Greco’s salary went up 52% in 3 years to a whopping $840,000 per year.

For a more detailed report, go to http://www.nptimes.com/09Mar/npt-bnews090306-1.html

The similarity with the auto industry continues. DMA’s CEO John Greco reports to a Board of Directors who are nominated in 3 year rotations, and a Chairman who’s nominated every year. As long as he manages the musical chairs of the Chairman and the Board, John keeps his high-paid job.

No-one grudges him his salary if he had some performance measures he could point to. However, its quite the reverse. Under John Greco’s watch, membership has declined substantially. (They’re virtually giving it away now.) Attendance at their events has, by some reports, has dropped off by as much as 50%. Their so-called advocacy efforts have been directed solely for the benefit of the old world of catalog marketers. And they have been unsuccessful at that too. (Witness the rate increases by the Post Office!)

This is the scandal of the decade. The DMA management team appears to work hard to keep this little secret under wraps, while they continue to pay themselves extraordinary salaries. Keeping the status quo is the name of the game.

The direct marketing industry is a rapidly evolving industry, and represents a very vital part of the rebuilding of America. The industry has embraced technology and is a poised for breakthroughs on several fronts. However the industry’s premier association, the DMA has chosen to ignore all this, and associate itself with direct mail, and the US Post Office.

Don’t take my word for it. Click on this link to read details.

Written by TheFounder · Filed Under Advertising Agency News 


Comments

  • Donny

    This isn’t unique to the DMA - it’s the Association business model. Most ceo’s then live the life of ceo members, in order to make them feel comfortable at the retreats, board meetings, etc. Associations mostly operate as not-for-profit companies, despite the For Profit use of funds, which further means that most of their revenues are tax-exempt - including the advertising and sponsorships they sell at the events or in their publications. Universities do the same thing. So do Congressional election campaign offices. Sucks, doesn’t it?

  • Donny

    This isn’t unique to the DMA - it’s the Association business model. Most ceo’s then live the life of ceo members, in order to make them feel comfortable at the retreats, board meetings, etc. Associations mostly operate as not-for-profit companies, despite the For Profit use of funds, which further means that most of their revenues are tax-exempt - including the advertising and sponsorships they sell at the events or in their publications. Universities do the same thing. So do Congressional election campaign offices. Sucks, doesn’t it?

  • http://www.nptimes.com/09Mar/npt-bnews090306-1.html Timmy

    I don;t agree with Donny.

    According to the ASAE & The Center for Association Leadership, the average salary for an association executive in New York City is $222,927 with benefits bringing it to $266,304.

    DMA seems to pay its CEO 3-4 times that figure! The Non-Profit Times covered the story in March. http://www.nptimes.com/09Mar/npt-bnews090306-1.html

  • http://www.nptimes.com/09Mar/npt-bnews090306-1.html Timmy

    I don;t agree with Donny.

    According to the ASAE & The Center for Association Leadership, the average salary for an association executive in New York City is $222,927 with benefits bringing it to $266,304.

    DMA seems to pay its CEO 3-4 times that figure! The Non-Profit Times covered the story in March. http://www.nptimes.com/09Mar/npt-bnews090306-1.html

  • Herb

    Very factual points about John Greco. To further prove his unethical actions check out this point:
    While at the Yellow Pages Association, he had a lawsuit brought against him by a former employee, Karen Stanek alleging that Greco terminated her because she brought informed the CFO that Greco was trying to get personal expenses paid for by the association.

    Google- Stanek v Greco. It is all there. Greco has also provided his wife with a “sweetheart deal” to be the DMA’s lead recruiter. This was a joke as Carol Greco has no experience dealing with senior executive hirings. Not to mention a blatent conflict of interest. She is no longer employed as a consultant to the DMA, only because the DMA’s BOD had to intervene and tell him no more.

    How much longer is the BOD going to wait until this incompetent individual runs the association into permanent ruin??

  • Herb

    Very factual points about John Greco. To further prove his unethical actions check out this point:
    While at the Yellow Pages Association, he had a lawsuit brought against him by a former employee, Karen Stanek alleging that Greco terminated her because she brought informed the CFO that Greco was trying to get personal expenses paid for by the association.

    Google- Stanek v Greco. It is all there. Greco has also provided his wife with a “sweetheart deal” to be the DMA’s lead recruiter. This was a joke as Carol Greco has no experience dealing with senior executive hirings. Not to mention a blatent conflict of interest. She is no longer employed as a consultant to the DMA, only because the DMA’s BOD had to intervene and tell him no more.

    How much longer is the BOD going to wait until this incompetent individual runs the association into permanent ruin??

  • Barney

    The one thing Greco learned from his firing at the Yellow Pages Association is an appreciation for the art of ass-kissing. If he could kiss the feet of Kelly Browining he would to protect his cushy job and high salary. When Browining’s mother passed away recently, Greco flew to the funeral so he could be there in person. Do you think he wanted to go or gave two s*#%s about his mother, hell no!
    I have it on first hand information that no one on the DMA staff is allowed to email or call any of the BOD without Greco first knowing, because God forbid the they should slip up and say something that would make any member of the BOD think twice about him.

    From what I understand, Greco is also hardly in the office and has earned his Doctorate in “Working from home”. That leaves his ever trusty sidekick Lakshmi-Ratan to run the show and unfortunately for the membership of DMA Ratan could hardly manage to run a high school bake sale much less a $30 million + organization. Has anyone seen the Jim Carrey movie -Yes Man? I think that is predicated on Ratan’s and Greco’s professional relationship.
    Ratan is just as bad as Greco and they both need to be sent packing (USPS of course and it will cost a bloody fortune to mail that sad sack due to DMA’s lack of success in rate reforms!)

  • Barney

    The one thing Greco learned from his firing at the Yellow Pages Association is an appreciation for the art of ass-kissing. If he could kiss the feet of Kelly Browining he would to protect his cushy job and high salary. When Browining’s mother passed away recently, Greco flew to the funeral so he could be there in person. Do you think he wanted to go or gave two s*#%s about his mother, hell no!
    I have it on first hand information that no one on the DMA staff is allowed to email or call any of the BOD without Greco first knowing, because God forbid the they should slip up and say something that would make any member of the BOD think twice about him.

    From what I understand, Greco is also hardly in the office and has earned his Doctorate in “Working from home”. That leaves his ever trusty sidekick Lakshmi-Ratan to run the show and unfortunately for the membership of DMA Ratan could hardly manage to run a high school bake sale much less a $30 million + organization. Has anyone seen the Jim Carrey movie -Yes Man? I think that is predicated on Ratan’s and Greco’s professional relationship.
    Ratan is just as bad as Greco and they both need to be sent packing (USPS of course and it will cost a bloody fortune to mail that sad sack due to DMA’s lack of success in rate reforms!)

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