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Media CEOs Made More Last Year Than Chiefs In Autos, Energy, And Finance

Executive compensation payOur annual Out Of Whack executive pay analysis already told you about the eye-popping compensation packages that Big Media CEOs made last year. But AP adds more context to the story this morning by showing that the amounts not only are high in absolute terms, they’re also outsized in comparison with the rest of corporate America. Six of the country’s 10 highest-paid CEOs come from media: CBS’ Les Moonves (No. 2, $65.6M), Viacom’s Philippe Dauman (No. 5, $37.2M), Disney’s Bob Iger (No. 7, $34.3M), Discovery’s David Zaslav (No. 8, $33.3M), Time Warner’s Jeff Bewkes (No. 9, $32.5M), and Comcast’s Brian Roberts (No. 10, $31.4M).

What’s interesting in the AP story, based on data from corporate proxies compiled by research firm Equilar, is how media chiefs compare with CEOs at companies that have far more impact on the economy. For example, ExxonMobil’s Rex Tillerson came in at No. 12 with $28.1M, Ford Motor’s Alan Mulally was No. 18 with $23,2M, Miles White of pharmaceutical giant Abbott Laboratories was No. 29 with $20.9M, Goldman Sachs’ Lloyd Blankfein was No, 37 with $19.9M, and General Electric’s Jeffrey Immelt was No. 43 with $19.2M. And last on the list of 50 was Coca-Cola’s Ahmet Kent with $18.2M. Last year’s highest-paid CEO was Anthony Petrello of oil and gas drilling company Nabors Industries with $68.2M.

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DirecTV CEO Makes $12.5M In 2013, A 31% Drop Due To Cut In Option Awards

By | Thursday March 20, 2014 @ 1:56pm PDT

At first glance the compensation for Michael White listed in DirecTV‘s new proxy statement looks like a big pay cut. Michael WhiteBut it may simply reflect an accounting fluke: The satellite company gave him $12M in option awards in 2012 that were recorded in his tally for that year, even though they vest over three years. In any event, he ends up with a tidy $12.5M for 2013 including $1.7M salary, $4.5M in stock awards, $1.6M in option awards, $4.3M in non equity incentives, $211,247 change in pension value, and $333,193 in other compensation. That last category includes $64,491 for his personal use of the company plans as well as $20,000 to match his charitable contributions. DirecTV shares appreciated 37.7% last year. White’s package is 2.7 times the median for his four top lieutenants, which is slightly below the threshold of 3X that many corporate governance experts say suggests a CEO’s pay is out of whack. The proxy shows that 6.9% of DirecTV shares are owned by Berkshire Hathaway, the company controlled by billionaire investor Warren Buffett who takes a dim view of bloated executive pay. DirecTV’s annual meeting will be held in New York on April 29.

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Big Media Pay: Who Were 2012′s Highest Paid Non-CEOs?

By | Sunday May 12, 2013 @ 3:00pm PDT

Media CEOs don’t run their companies by themselves. Having looked at chiefs whose pay is out of whack, and those who are paid the most, here are others of note: the five best compensated company chairs, COOs, CFOs, and General Counsels as well as 10 other execs with standout compensation. We find that the five highest paid chairs collectively made $106.5M (+4.1% vs. 2011), with the COOs at $136.2M (+7.5%), CFOs at $77.9M (-15.0%), and General Counsels at $42M (+6.4%). Keep some caveats in mind with these results: I looked only at chairs who aren’t also CEOs, and there aren’t that many. (To avoid duplication, I combined the compensation that Sumner Redstone collected at CBS and Viacom, and that Charles Dolan received at Cablevision and AMC Networks.) Also, it’s often hard to define the roles that execs play. For example, Disney and Comcast don’t list a COO and Comcast’s CFO is also the Vice Chairman. So these compensation figures from company proxy statements can help you to see how the media power elite stack up, but only tell part of the story. Finally, remember that the SEC requires companies to provide compensation information for their five top executives. It’s safe to assume that several unlisted execs at big companies were paid more than some listed execs at smaller ones. Here’s how some of media’s top non-CEOs fared in 2012: Read More »

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Big Media Pay: Who Were 2012′s Highest Paid CEOs?

Highest Paid CEOs 2012No surprise about who topped the list of 2012′s highest paid CEOs at the media companies whose compensation practices I track most closely. (See here for an explanation). CBS’ Les Moonves returns to the head of the pack with $62.2M, even though his package was 11.1% smaller than it was in 2011. That was an anomaly: The top 20 collectively made $542.7M, up from $416.6M in 2011, according to company proxy statements filed at the SEC. It took $25.9M to crack the Top 10 — last year Time Warner Cable’s Glenn Britt made it with $16.4M. The most notable change in this year’s list vs 2011 is the jump by Liberty Media’s Greg Maffei to No. 2 from No. 28 as his company adjusted stock options just in case the feds change the corporate deduction this year for performance-based compensation.

Related: Big Media Moguls With Out-Of-Whack Compensation

Yahoo’s Marissa Mayer also joins the top 10 following her move there from Google. Her appearance also highlights a quirk in this year’s list which has more CEOs than companies: Yahoo had three CEOs last year (Mayer is still there) and there were two apiece at Sirius XM (James Meyer replaced Mel Karmazin) and Cinemark (Tim Warner is now in charge). Also, remember that this list just includes corporate CEOs, not division chiefs or board chairs. I’ll be back soon with a list of the highest-paid media execs. The numbers on the right are the amount in millions of dollars for the total compensation as reported by each company.

Here’s our list of 2012′s highest-paid media CEOs: Read More »

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Media Moguls With Pay NOT Out-Of-Whack: EXCLUSIVE DEADLINE LIST

Media CEO SalariesA few weeks ago I listed the media company CEOs whose pay is way out of whack with other execs in the same company. But if you think that all media chiefs receive such special treatment, then you also need to look at this list: Here are the CEOs whose 2011 compensation packages were more in line with their colleagues. They were below the threshold that makes corporate governance experts worried — typically when the top dog is paid more than 3 times the median for the other executives whose pay must be listed in the proxy statement sent to shareholders and the SEC. The tallies usually include the top 5 execs. As my previous posts explained, a growing body of research (including this study, this one, and this one) shows that companies with out-of-whack pay over time often suffer from problems including groupthink that can result in bad decisionmaking and a low stock price.

On the list below you’ll find CEOs whose pay doesn’t raise a red flag on that one criterion. But let’s be clear: We aren’t saying that they are fairly or unfairly paid. Indeed, many governance experts have criticized pay packages for some of the people here — including Comcast’s Brian Roberts, News Corp’s Rupert Murdoch, and Netflix’ Reed Hastings. The numbers simply show that the boards of directors seem to recognize that multiple people deserve the credit for the company’s performance. Read More »

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Big Media Moguls With Out-Of-Whack Compensation: EXCLUSIVE DEADLINE LIST

Media CEO CompensationEXCLUSIVE: Here’s information you need to know if you’re a Big Media investor, or simply want to understand how power works in this star-obsessed industry. This is Deadline’s second annual list of CEOs whose pay is most out of whack — meaning that the company board pays him or her far more than other top execs. The metric can tell you a lot about the dynamics of power at a company. Corporate governance watchdogs say that it’s a red flag when directors pay the CEO more than three times the median compensation for other leaders named in the annual proxy statements filed at the SEC. By that measure, 18 out of 30 media companies that I tracked and that have filed 2011 data fail the test — in many cases miserably.

Related: Media Moguls With Out-Of-Whack Pay Compensation — 2010 Edition

What does it mean when there’s a gross imbalance? When it persists over time, then it could indicate that directors are in the chief executive’s pocket and don’t ask tough questions. But it’s still worrisome even if they honestly believe the top dog has skills that can’t be easily replaced. Talented up-and-comers usually split from companies where the CEO is treated as a demigod. Researchers also find that at companies with lop-sided pay, people are more likely to give the chief all the credit when things go well, and find others to scapegoat when they don’t. Sooner or later, the blend of unchecked power and groupthink damage the company’s performance — and the stock price. Read More »

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Netflix CEO Reed Hastings Collects $9.3M In 2011, A 68% Raise

By | Friday April 20, 2012 @ 11:51am PDT

If you’re a Netflix investor, you might want to reach for some pills to control your blood pressure. Although the home video company lost 62.5% of its market value last year, CEO Reed Hastings did just fine — as did all of the other top executives named in the proxy that Netflix filed today at the SEC. True, Hastings’ salary was cut 3.7% to $500,000. The document says that the Compensation Committee “took into account the Company’s performance during 2011 and reduced the Chief Executive Officer’s total compensation by $1.5 million.” But Hastings shouldn’t feel much pain. His stock option award was up nearly 76% to $8.8M. All of the company’s other top execs also made more in 2011 than they did the previous year — collectively they were up 27.6%. Hastings’s compensation accounted for 40% of the pay for the company’s five top execs. His take was about 2.7 times the average for his colleagues. Corporate governance activists become skeptical when the CEO Read More »

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CBS’ Les Moonves Lands $69.9M In Compensation For 2011, Up 21%

By | Friday April 13, 2012 @ 1:46pm PDT

CBS Les Moonves SalaryFor perspective, Moonves‘ increase is far less than the 40% rise in CBS‘ stock in 2011. Still, the CEO’s $69.9M package makes him by far the highest paid media CEO for the year among companies that have already filed their annual proxy statements. Here’s how Moonves’ compensation adds up: $3.5M salary, $27.5M bonus, $8.5M in stock awards, nearly $27.3M in option awards, $1.5M change in pension value, and $1.6M in other compensation. That last category includes $500,000 to help build “a dedicated work area at his home for the purpose of screening and evaluating television and film programming and other work-related activities.” The company also paid $557,600 for transportation, including personal use of CBS’ jets. The proxy says that the board rewarded Moonves for, among other things, the big jump in CBS’ stock price, his dealmaking and “in leading the CBS Television Network in solidifying its #1 position in key ratings measures.” Chairman Sumner Redstone was the second highest paid exec, with $20.3M, flat with 2010. But there’s no doubt that the board considers Moonves the star of the show. He received 60% of the pay awarded to CBS’ top five execs. His compensation was six times greater than the average for his four colleagues. Corporate governance watchdogs consider it a danger sign when a CEO makes more than three times the average pay doled out to the others in the elite group. CBS … Read More »

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Time Warner’s Jeff Bewkes Makes $25.9M In 2011, Down 1.4%

Bewkes’ package is insanely rich by any normal measure — but puts him at the bottom of the pack among CEOs of Big Media companies that have already released proxy statements for 2011. (This year’s breakdown for Bewkes: $2M salary, $6.1M stock awards, nearly $4M option awards, $13.5M non equity incentives, 253,280 change in pension value, and $97,966 for other compensation.) Although Time Warner shares appreciated 11.9% last year, the board dinged his bonus because the company “did not surpass the financial targets by as great an amount as it did in 2010.” Still, Bewkes’ pay was lopsided when compared to the four other highest paid Time Warner execs. His package amounted to almost as much as the other four combined, and was 3.9 times higher than their average compensation. Corporate governance watchdogs consider it troublesome when a CEO makes more than three times the average for the company’s other top officers.

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News Corp Stung By Shareholder Advisory Services Urging Investors To Reject James Murdoch And Other Board Candidates

Things could be interesting in Los Angeles on Oct. 21 when News Corp holds its annual shareholders meeting. Advisory firm Institutional Shareholder Services recommended today that stock owners reject 13 of News Corp’s 15 board members, including the three Murdochs: Rupert and his sons James and Lachlan. Joel Klein, who runs News Corp’s Education Division, and Accel Partners’ James Breyer were the only nominees deemed acceptable by ISS. The firm says that while the News Of The World phone-hacking scandal ”is perhaps the most visible and severe example of the failure of board stewardship, it is part of a mosaic of failures of board independence, oversight, and responsiveness to shareholder concerns stretching back at least to 2004, when the company reincorporated from Australia to Delaware.” The report probably won’t affect the outcome of the shareholder vote: Due to News Corp’s dual stock arrangement, the Murdoch family controls about 40% of the voting shares even though it owns just 12% of the equity. Rupert’s ally, Prince Alwaleed bin Talal, controls an additional 7% of the votes.

News Corporation says that it “strongly disagrees” with ISS’ recommendations because the “disproportionate focus” on the scandal is “a disservice to our stockholders.” The company adds that ISS “failed to consider that the Company’s compensation practices reflect its robust performance in FY 2011 driven by its broad, diverse group of businesses across the globe.” Read More »

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Sony Boss Howard Stringer Sees Pay Cut

By | Tuesday June 28, 2011 @ 8:55am PDT

It hasn’t been a good year for Sony, which has been reeling from the Japanese earthquake and tsunami and hacker attacks on its PlayStation Network that the company said will cost it $2 billion in operating profit this fiscal year. Now the problems have reached Howard Stringer’s office: The Sony chairman received 15% less compensation for the 12 months ending March 31, the company said in government filings today, putting his salary and bonuses at $4.3 million (his second in command and likely successor, Kazuo Hirai, also got a pay cut). Sony’s stock has fallen 29% since the earthquake March 11; the company has reported three consecutive annual losses. According to Bloomberg, Stringer has overseen the loss of more than 37% of Sony’s market value over the six years ended March 31 since he was made chairman and CEO.

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EXCLUSIVE DEADLINE LIST: Media Moguls With Out-Of-Whack Pay Compensation

EXCLUSIVE: This is exactly the kind of information that shareholders of Big Media need to know but rarely see. It’s considered a red flag when any public company pays one of its bigwigs – usually the CEO – three times more than the average for the four other top executives which the SEC requires them to list. So I’ve taken proxy statements and done the computations and discovered that at least 16 of 35 companies failed that test. Often miserably. Nearly half of the media company compensation packages disclosed so far for 2010 show a startling degree of hero-worship as boards of directors pay their top dogs sums that far exceed what the pay was for other top execs in the company.

Stock grants accounted for big chunks of the compensation for those who top this list, including Discovery Communications CEO David Zaslav, Viacom CEO Philippe Dauman, DirecTV CEO Michael White, Nielsen CEO David Calhoun, and CBS chief Les Moonves. Radio station owner Entercom was off the charts: CEO David Field’s $9.1 million compensation was modest by media company standards but still 25.4 times bigger than average for the company’s other four executives. It includes $7.9 million from stock grants that only pay off if Entercom shares rise to hit certain target prices.

Still, corporate governance experts who focus on what’s often called “CEO centrality” say that an out-of-whack pay package is bad news for shareholders. It indicates that the board of directors may be in the pocket of a CEO – or believes he or she has near super-human power to help the company succeed.  In either case, the board is likely to give the CEO all the credit when things go well, and blame others when they go badly. Research shows that usually hurts the stock price over time.

I’ll track this and other measures of lop-sided pay as other media companies release information for 2010. But there are a few things to keep in mind: The SEC reporting rules only cover the top-paid executives of publicly traded U.S. companies. That means we probably won’t know how much privately held Hearst pays CEO Frank Bennack, or how much Japan’s Sony pays CEO Howard Stringer. It also means that we’ll miss a lot of highly paid people who work at subsidiaries of a big company; Universal Studios’ Ron Meyer may be a big deal in Hollywood, but he was a relatively small fish last year at parent company General Electric. 

To make comparisons in our list here as fair as possible, we looked at the compensation for the five most highly paid employees for 2010. Sometimes companies report the pay for more than five people — for example, when a top executive is replaced during the year a corporation will include the incoming and outgoing person’s compensation. And the pay data given the SEC can spike in a year when an executive cashes in stock or collects deferred compensation. So here’s how the companies stack up, with the top paid executive’s 2010 reported compensation and comparison to the average (median) pay for the four other highest-paid honchos:

1. Entercom: David Field. The son of company founder Joseph Field became CEO in 2002, about 15 years after leaving his job as an investment banker at Goldman Sachs. Field made $9.1 million last year – the total of his $791,723 salary, $444,308 bonus, $7.9 million in stock, and $28,000 in other perks including medical insurance premiums. That’s a 348% raise in a year when company shares appreciated 53.2%. Though considered a strong operating executive, his salary stands out because it’s 25.4 times higher than the $358,692 average for the four other top executives listed in Entercom’s proxy statement. Field’s salary and the $3.9 million paid to CFO Stephen Fisher accounted for 93% of the $14 million that Entercom paid to its top five executives. Read More »

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