Executive Compensation at the International Air Transport Association (IATA)

The International Air Transport Association (IATA) is a trade association for the world’s airlines, representing nearly 300 airlines or about 85% of total air traffic.  A tax-exempt, non-profit 501 (c) (6), IATA is based in Washington, DC with 9 independent voting members (directors) of the governing body (Board of Governors, all of whom are male.

IATA is also known as Airlines For America and A4A.

In 2019, IATA reported total revenue of $39 million (compared to $39 million in 20180 most of which came from membership dues ($31 million), the Known Crewmember Program ($5 million), Industry Coordination Programs ($2 million), and the E-Business Program ($1 million).

Membership consists of approximately 290 airlines, all of whom paid a one-time application fee (currently $15,000) and annual fees of $12,000 plus a variable fee for airlines that perform more than 5 million kilometers.  In 2019 very few new airlines joined IATA which means most of the membership revenue came from annual fees.  290 airlines mutliplied by 12,000 equals $3.5 million so the majority of membership revenue came from the variable fees that the airlines paid.  $27 million divided by 290 airlines means that each airline paid an additional $100,000 annually to IATA.

So, if IATA receives nearly $40 million annually, how much do they spend and how are these funds spent?  The short answer is they spend most of what they collect (as evidenced by virtually no net assets) on compensation ($22 million), fees for services ($5 million), and office-related expenses ($4 million).

93 employees received $22 million in compensation, which equates to an average compensation of $237,000.  However, only 53 employees received more than $100,000 in compensation with the 11 most highly compensated reported to be:

• $4,238,572:  Nicholas Calio, President and CEO
• $  753,664:  Christine Burgeson, SVP, Global Government Affairs
• $  746,084:  Sharon Pinkerton, SVP, Leg, Reg Policy
• $  595,461:  Paul Archambeault, SVP, CFO, and COO
• $  567,185:  Patricia Vercelli, SVP, General Counsel
• $  539,304:  Joshua Saltzman, VP, Global Government Affairs
• $  518,584:  Shelley Rubino, VP, Global Government Affairs
• $  502,959:  Rebecca Spicer, SVP, Communications
• $  451,512:  Nancy Young, VP Environmental Affairs
• $  420,590:  Keith Glatz, VP, International
• $  365,044:  Jarrod Thompson, VP, Leg, Reg Policy

The 11 employees listed above received $10 million in compensation which means the remaining 82 employees received $12 million in compensation (or an average of $146,000).

Nicholas Calio, the President and CEO received $4.2 million in compensation in 2019 (according to the IRS Form 990 submitted to the IRS). Previously filed Form 990’s report Mr. Calio received the following compensation in the previous 8 years (2011-2019):

• $4,176,629 (2018)
• $3,945,595 (2017)
• $3,876,041 (2016)
• $3,873,362 (2015)
• $3,864,281 (2014)
• $3,841,430 (2013)
• $3,627,550 (2012)
• $3,626,426 (2011)

In total, Mr. Calio received $35 million in compensation from 2011-2019.

IATA also paid for first class or charter travel, travel for companions and social or health club dues or initiation fees.  In addition, IATA made gross up payments and/or provided tax indemnifications.  See the Form 990, Schedule J, Part III, Supplemental Information for more details.