Content Creation is a Semi-Glamourous Business Andy Marken August 1, 2024
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They worship everything, and they value nothing. - Sebastian, LaLa Land, Lionsgate, 2016
One of the toughest jobs in the world is to be a boss/CEO of a company.
Worse? Being a CEO in the Americas.
Worse yet? Being a CEO of a tech/entertainment company in the Americas.
How did we arrive at this epiphany?
Logic! because you have to pay some idiot an exorbitant amount of money along with a huge backend payment to take the job.
According to the Booth School of Business, the average salary of a CEO at a Fortune 500 company is about $15M and entertainment CEOs get a lot more.
The job is so tough that when Sheri Redstone (family fortune so it sorta' doesn't count) and the board blew out Bob Bakish, she had to convince three guys to share the blame job - Chris McCarthy, George Cheeks and Brian Robbins. Then she could focus full attention - along with the board - to decide if they're going to keep the old girl together, sell her as a single diamond or cut her up into smaller gemstones.
Safe Landing - A for hire CEO always needs a well-crafted exit package or golden parachute because well, paying boss gigs are tough to come by.
In addition to having some small consolation knowing it took three folks to replace him, Basich was given time to clean out his desk and got his monthly stipend ($258K/mo.) until the end of October.
Oh yeah, he had a soft landing like most CEOs who get fired with a $48.5M ++ severance package.
Hollywood may be a tough business, but it pales in comparison to tech firms. Elon Musk is so broke he asked (demanded) that his $56B compensation package be reaffirmed. Wonder how much he gets paid every time he goes to the bathroom?
It's Tougher - While we have a world economy, it's obvious that being a boss in the US is tougher than anywhere else so you have to pay the guy (most of the time it's a guy) because, ah well because.
Sorry, got sidetracked, but being CEO for an American company really has to be tougher than anywhere else in the world.
After all, they have to get paid so much more than their counterparts in other parts of the world to be convinced to take the thankless job.
According to Bloomberg analysis, US CEOs average $14.3M annually more than double their counterparts north of the border and 10X more than those in India.
There are a lot of different reasons for the discrepancies - many of the world's largest companies are located here, there's a higher cost of living (you know about that, right?) and well stuff.
Of course, their jobs - making their numbers - were made even tougher by all of the strikers (actors, auto workers, etc.) who wanted a living wage, healthcare, holidays (EU folks get a month) and simply drug the strikes out, quibbling over little things.
According to the US Bureau of Labor Statistics, the median US worker made about $31.43/hr. last year but actors were paid $17.94/hr.
While the negotiating bosses still got paid, folks on the picket lines lived off savings (?), the kindness of others and union health plans.
Most actors aren't stars, most creators aren't Tarantino or Nolan; stunt folks have it a little tougher than Fall Guy's Gosling; production folks only get in front of the camera to clean the lens and most postproduction folks grind away hours on end in dark rooms staring at screens.
Sorry to crush the kids' dreams of heading to Hollywood, getting discovered serving coffee, becoming instantly famous, living in a Beverly Hills mansion and wallowing in money.
That s*** doesn't even happen in the movies!
But ever since the golden era of Hollywood, media industry executives have always been highly paid. And over the past bunch of years, these tormented executives have been through the grinder.
There was the MeToo period, the pandemic, those troublesome worker strikes and the total upheaval of the show/movie food chain. But through it all, top executives at Disney, Warner Bros and others got paid an average of $34.8M last year (more than double their counterparts in other US industries).
Salary Plus - Executives - or their agents - may have to negotiate how much they get paid but there's an entire industry built around executive compensation that helps them ensure they get theirs first.
True, stock awards make up most of their compensation packages and they're granted at the beginning of the year.
So, it probably doesn't count that all of those shelved video projects (regardless of how far along they are) that create tax savings and folks being layed off rather than adjusting their salary, are important management decisions.
After all, the pandemic was behind us and obviously, people were going to flock back to theaters even though they had been cutting back on high ticket prices and expensive popcorn for years.
Not Going - Certain segments of the entertainment industry don't like to admit that the cost (time/money) of a movie makes it less attractive for a lot of people to go to movie houses today especially since they have options.
In fact, according to most research, only eight percent of folks consider themselves frequent movie attendees while 59 percent say they rarely or never see movies in the theater.
And we hate to break the industry, but that just ain't gonna change!
The other change, which has been equally as slow and insidious, has been the petering out of the pay TV gold mine.
Folks have options lots of options.
Past Prime - Prime TV viewing is past its prime as the cost of the payTV bundle continued to grow along with the number of ads networks/services packed into each hour. Consumers have begun switching to economic and quality options.
Actually, FX CEO John Landgraf coined the term Peak TV a few years af
