Executive Compensation at the American Diabetes Association (2019)
The American Diabetes Association (ADA) is a non-profit, tax-exempt 501 (c) (3) based in Arlington, Virginia. Over the past several years, the ADA experienced a drop in revenues and a decline in the organization’s endowment but in 2018, with the replacement of the Executive Director and key staff, the numbers increased slightly (by $14 million) but declined by $11 million in 2019. In the most general terms, the organization has raised about $150 million annually over the past three years.
By cutting staff (from 1,500 in 2013 to 956 in 2019) and other expenses, ADA seems to be back on track financially. However, it remains to be seen if the organization will accomplish one of their key goals in the years ahead: to prevent and cure diabetes.
The ADA has been around for 80 years and during that time, diabetes (specifically, Type 2) has exploded in this country. Accurate records were not maintained in 1940 but estimates are that about 1 million Americans had diabetes back then. Today, that number is 30 million with an additional estimated 100 million Americans being pre-diabetic which often becomes Type 2 diabetes within 5 years. But, the growth in diabetes is not due to population growth.
In 1940, the population of the US was about 132 million. In 2018, the population had grown to 328 million – an increase of about 250%. The growth in diabetes (from 1 million to 30 million, without even considering the pre-diabetics) was 2,900%. In other words, the disease has been growing much faster than the population which means something has changed and that something appears to be diet and weight. Unless the ADA is able to convince people to make serious lifestyle changes, Type 2 diabetes rates will not decrease.
In 2019, the ADA raised $147 million (compared to $158 million in 2018) and spent $138 million (compared to $132 million in 2018) with the unspent revenue ($9 million) allocated to the general fund (which had $71 million at year-end). The single largest expense for ADA is compensation. 956 employees were compensated $50 million, which equates to an average compensation of $52,600. 85 employees received more than $100,000 in compensation with the 18 most highly compensated employees listed below:
- $1,038,007: Tracey D Brown, CEO
- $ 386,327: Eloise Scavella, Chief Operating and Strategy Officer
- $ 341,622: John Agos, Chief Strategic Development Officer
- $ 319,150: William Cefalu, Chief Scientific, Med, and Mis Officer (end 8/15/19)
- $ 315,605: Vignesh Clingam, Chief Marketing and Digital Officer (eff 2/28/19)
- $ 306,197: Charlotte M Carter, CFO
- $ 259,297: Linda Cann, SVP, Professional Services
- $ 253,887: Paul Nalbandian, Associate Publisher, Advertising/Sales
- $ 229,316: Sean McDonough, VP and General Counsel
- $ 221,839: Anthony Webster, Chief HR Officer (end 9/10/19)
- $ 220,517: LaShawn McIver, SVP, Gov’t Affairs, Advocacy
- $ 207,697: Tricia Cedotal, VP, Corporate Alliances
- $ 204,376: Roy Furman, Medical Director, Quality Improvement
- $ 201,864: Tony Chiles, CIO (end 9/20/19)
- $ 198,410: Jeannine Jones, VP, HR Operations
- $ 194,390: Elaine Curran, VP, Development
- $ 174,586: Christa Wilson, VP, IT
9 of the 18 (50%) most highly compensated employees are female while 9 of the 18 (50%) are male. It is also important to point out the ADA has 18 independent voting members (directors) of the governing body (board of directors) – 11 of whom are male while 7 are female (note: the Form 990 does not report gender identity; the conclusion was made based on name and a google search).
ADA made gross up payments and tax indemnifications. For information on this and severance payments, see the Form 990, Schedule J, Part III, Supplemental Information.
35 independent contractors received more than $100,000 in compensation with the 5 highest reported to be:
- $2,443,826: Blackbaud, of Austin, TX for constituent records app
- $ 725,819: Chapman Cubine and Hussey, of Arlington, VA for fundraising
- $ 598,440: Contravent, of Salt Lake City, UT for digital marketing
- $ 539,550: Spectrum Science Communication, of Washington, DC for communications
- $ 479,065: Ricoh USA, of Malvern, PA for printing services