FIRST ON FOX: The Obama Foundation is facing scrutiny over income inequality. While many of its employees earn six-figure salaries—CEO Valerie Jarrett leading at $771,000—others, notably those seeking union representation, are struggling at the lower end of the pay scale.
This wage gap has come to light as reports revealed that the cost of the Obama Presidential Center, which has been delayed, has now reached $1 billion—three times the initial estimate for this Chicago facility. According to the foundation’s 2025 tax filing, nearly half of its 342 employees, specifically 172, are earning over $100,000.
Jarrett, a close advisor to Barack Obama and a former senior White House official, has managed the foundation since 2021, overseeing the completion of the Presidential Center in Chicago’s South Side.
Her salary increased by about $15,500 from 2024, placing her among at least four of the nonprofit’s ten highest-paid executives, many of whom have ties to the Obama administration.
“The Foundation pays our employees rates that are competitive with the market,” stated Emily Bittner, vice president of communications for the Obama Foundation, noting that the organization employs over 500 people globally, with around 300 working at the Center.
Interestingly, the foundation’s current employee count has surpassed the 342 reported in its 2025 tax filings, which covered a period ending almost six months before the opening of the Center in June. However, the nonprofit has not released an updated payroll breakdown.
In 2025, the Obama Foundation’s payroll and benefits totaled $50.4 million, a significant increase from $18.5 million in 2018. Overall revenue for the last year was approximately $159 million, mostly comprising contributions and grants, nearly $151 million of which were in that category.
The increase in spending comes amid the foundation’s expansion of leadership and civic programs while aiming to finalize the developing Presidential Center located on public parkland in Jackson Park, Chicago.
WATCH: Expert discusses Obama Foundation’s finances amid $1B Presidential Center costs
Expert view
Brian Mittendorf, an accounting professor at Ohio State University, noted the unique nature of the Obama Foundation’s employee compensation structure compared to typical nonprofits. He remarked that, given the organization’s specialization, a higher percentage of employees earning over $100,000 is not uncommon.
“That’s clearly a higher percentage than what you’d find in the average nonprofit,” he commented, adding that it reflects the need for specialized skills—something common in organizations that emphasize think-tank capabilities.
By comparison, the Obama Foundation’s proportion of well-paid employees exceeded that of five other presidential nonprofits examined. About 50% of its employees reported earnings above the $100,000 mark in 2025, far exceeding the Bush, Carter, Clinton, Reagan, and George & Barbara Bush foundations according to their 2024 tax filings.
Executive pay
Jarrett’s salary trajectory shows a rise from about $581,000 at the start of her tenure to $740,000 in 2022, holding that figure steady through 2024 before growing to nearly $755,000 in 2025.
In contrast, other major presidential foundations reported lower CEO salaries than Jarrett’s. For example, during the fiscal years ending in 2025, the Reagan Foundation’s CEO earned about $735,000, while the Carter Center’s was at $531,000.
Top earners at the Obama Foundation also include Christina Tchen, who earned roughly $431,000, and Michael Strautmanis at about $404,000. Additional significant salaries come from individuals like Robbin Cohen, who made approximately $666,000.
The Obama Foundation defended its practices around executive pay, asserting that decisions are made based on comparability data and consulting advice. They also pointed to salaries in other major charities, indicating that these figures reflect higher compensation for executives in similar roles.
However, Mittendorf acknowledged that substantial pay in the nonprofit sector often draws public criticism, especially in contexts like this where public awareness and opinion are heightened.
Illinois Republican Party Chairman Bob Grogan criticized the foundation’s practices, claiming its activities enrich Obama’s close associates while misusing taxpayer resources.
Despite accusations, the Obama Foundation insists that the costs of constructing the Presidential Center come from private funding, with operations supported by donations and revenues. They acknowledge some public funds have been used for some local infrastructure upgrades around the site.
Workers push to unionize
In the midst of high executive salaries, regular employees at the Obama Foundation are advocating for union representation. They cite rolling back benefits and insurmountable workloads as issues along with deteriorating workplace conditions that resulted in experienced colleagues leaving.
Organized under Obama Workers United with AFSCME Council 31, the workers range from visitor services to cleaning staff and those in technology and educational roles.
In a public letter, they expressed concerns about increasing workloads combined with insufficient benefits. They are also calling on leadership to respect their right to organize and avoid hiring anti-union representatives.
The foundation replied that it champions the right to organize and values its staff members’ contributions, aiming to work collaboratively with union representatives as the process unfolds.
