Executive Compensation at the American Beverage Association (2023)

The American  Beverage Association is a Washington, DC-based non-profit 501 (c) (6) trade association representing America’s non-alcoholic beverage industry. Originally established in 1919 as the American Bottlers of Carbonated Beverages, the organization was renamed the National Soft Drink Association in 1966, when the soft drink market began growing rapidly in the USA.

In 2004, the organization’s name was changed to the American Beverage Association (ABA), which coincidently was about the time negative press was on the upswing calling out the soft drink industry for the copious amount of sugar and high fructose corn syrup in soft drinks. In subsequent years, as the government imposed taxes on these beverages siting the lack of nutritional benefits and the great cost to the consumer and the health care industry, the ABA has fought attempts by stepping up their lobbying efforts.

Basically, the ABA is a lobbying group representing the special interests of those in the non-alcoholic beverage industry, including the companies making or bottling regular and diet sodas.

So, what exactly does the ABA do?  The ABA collects about $100 million ($106 million in 2023) in revenue annually which primarily comes from two sources:  “SAB assessments” and membership dues. The “SAB assessment” is the largest source of revenue ($82 million in 2023) but it is unclear where these funds come from although a guess would include the big players in the non-alcoholic beverage industry including Coca Cola, Pepsi, Dr. Pepper, and Red Bull.  Membership dues totaled $19 million in 2023.

Expenses totaled $98 million in 2023 with the largest expenses reported to be fees to outside independent contractors ($60 million), industry projects ($19 million) and compensation ($13 million).  In other words, the ABA spends most revenue on lobbyists, law firms, public relations firms, etc and on industry projects to promote soda and other carbonated beverages, and non-carbonated beverages.

The Form 990 (2023) reports the ABA compensated 48 employees $13 million in 2023, which equates to an average compensation of $270,000.  However, only 33 employees received more than $100,000 in compensation which means there are some very highly compensated employees at the ABA, including the 9 most highly compensated employees who received $8 million:

• $2,179,913:  Kevin Keane, Interim President and CEO (beg 3/23)
• $1,940,889:  Katherine Lugar, President and CEO (thru 3/23)
• $   797,605:  Amy E Hancock, EVP, Secretary and General Counsel
• $   742,218:  Robert A Micek, EVP and CFO
• $   463,820:  Sean Krispinsky, SVP and Deputy General
• $   459,502:  Meredith Potter, SVP, Public Affairs
• $   408,196:  Ricardo D Rivas, VP, CA
• $   405,474:  Katherine Loatman, VP, Global Affairs, ICBA Exec Dir
• $   385,389:  Amy Brink, SVP, External Affairs

If the 9 employees listed above were excluded and the $8 million of their compensation is deducted from the total compensation,  then the remaining 39 employees received $5 million, which equates to an average compensation of $128,000.  24 of the 39 employees received more than $100,000 (but less than $385,000) while 15 received less than $100,000.

Of the 9 employees listed above, 5 are female  while 4 are male.

The 9 most highly compensated employees received $28 million in compensation from 2018-2023 (note:  highly compensated employees in any of the years 2018-2021 but not in 2023 are not included – i.e. Mark Hammond who received $5 million in compensation from 2018-2022):

Katherine Lugar:  Total Compensation 2018-2023:  $11 million

• 2023:  $1,940,889
• 2022:  $3,174,592
• 2021:  $2,224,290
• 2020:  $1,827,366
• 2019:  $1,071,035
• 2018:  $  531,945

Kevin Keane:  Total Compensation 2018-2023:  $7 million

• 2023:  $2,179,913
• 2022:  $1,118,323
• 2021:  $  948,926
• 2020:  $  920,502
• 2019:  $  939,035
• 2018:  $  796,437

Amy Hancock:  Total Compensation 2018-2023:  $4 million

• 2023:  $797,605
• 2022:  $731,841
• 2021:  $604,069
• 2020:  $565,115
• 2019:  $552,860
• 2018:  $575,929

Robert Micek:  Total Compensation 2022:  $1 million

• 2023:  $742,218
• 2022:  $660,018

Sean Krispinsky:  Total Compensation 2018-2023:  $2 million

• 2023:  $463,820
• 2022:  $433,584
• 2021:  $390,672
• 2020:  $369,950
• 2019:  $355,060
• 2018:  $318,385

Meredith Potter:  Total Compensation 2022-2023:  $1 million

• 2023:  $459,502
• 2022:  $432,601

Ricardo Rivas:  Total Compensation 2022-2023:  $1 million

• 2023:  $408,196
• 2022:  $368,814

Katherine Loatman:  Total Compensation 2023:  $0.4 million

• 2023:  $405,074

Amy Brink:  Total Compensation 2023:  $0.4 million

• 2023:  385,389

The IRS Form 990 also reports the ABA paid for health club or social club dues or initiation fees. Specifically, the president had access to a health club.

It is important to note 26 independent organizations received more than $100,000 in compensation with the five highest reported to be:

• $8,241,410:  Rational PR LLC, of Washington, DC for professional fees
• $1,992,630:  Public Opinion Strategies, of Alexandria, VA for professional fees
• $1,120,000:  Eat Well Global, of White Plains, NY for professional fees
• $   633,237:  Gradient, of Boston, MA for professional fees
• $   628,700:  Breezeway Consulting, of Somerville, MA for professional fees

$60 million was paid in fees to non-employees in 2023.  26 independent organizations received more than $100,000.  5 of the 26 firms received nearly $13 million, as listed above which means 21 independent organizations received more than $100,000 but less than $628,700 (the fifth highest compensated independent contractor).  If those 21 firms received $600,000 each, then another $13 million was paid out.  All of which means 26 independent organizations received $26 million of a total $60 million paid out, leaving $34 million paid to firms that received less than $100,000 each which means at a minimum there are 340 other independent contractors (and that’s if every one of them received just under $100,000 each) and probably hundreds more.  Possible yes; probable don’t know.

To read the IRS Form 990 (2023), click here.