CEOs of major US entertainment companies receive twice as much pay as the average company executive

CEOs of major US entertainment companies

Executive compensation for CEOs of major US entertainment companies grew more than twice the average compensation for CEOs at the nation’s largest companies last year, new data shows. The average compensation the CEOs of eight major entertainment companies, including Disney, Warner Bros., and Netflix, earned in 2023 was $34.8 million (approximately 5.5 billion yen).

CEO compensation at five of the largest entertainment companies

CEOs of major US entertainment companies receive twice as much pay as the average company executive

CEO compensation at five of the largest entertainment companies (Warner Bros., Liberty Media, Disney, Lionsgate, and Netflix) increased by more than 20% compared to the previous year.

CEOs of major US entertainment companies : Lionsgate

CEOs of major US entertainment companies receive twice as much pay as the average company executive

John Feltheimer is one of the CEOs of major US entertainment companies had the biggest increase in compensation compared to 2022, with a 284% increase. Total compensation jumped from $5.6 million (about 885 million yen) to $21.5 million (about 3.399 billion yen), of which $10 million (about 1.58 billion yen) was a cash bonus. The bonus amount increased by $7.2 million (approximately 1.138 billion yen) from the previous year.

CEOs of major US entertainment companies receive twice as much pay as the average company executive

When Disney’s Bob Iger is one of the CEOs of major US entertainment companies returned as CEO in November 2022, his executive compensation was $15 million (approximately 2,371 million yen), but his total compensation last year when he became full-time was $110. % increase to $36.1 million (approximately 5,707 million yen). This is less than the $45.9 million (approximately 7.257 billion yen) he was paid in compensation in 2021 before he stepped down as CEO, but this is mainly due to the drop in Disney’s stock price.

Greg Peters, co-CEO of Netflix

CEOs of major US entertainment companies receive twice as much pay as the average company executive

Greg Peters, is one of the CEOs of major US entertainment companies who was appointed co-CEO of Netflix in January 2023, will receive executive compensation of $28.1 million (approximately 4.442 billion yen) in 2022, when he was chief operating officer (COO) and chief product officer (CPO). ), which increased by 29% to $40.1 million (approximately 6.34 billion yen).

Comcast Chairman and CEO Brian Roberts will earn an 11% increase to $35.5 million, while Liberty Media CEO Greg Maffei will earn a 28% increase to $28.7 million. Warner Bros. CEO David Zaslove’s salary rose 26.5% to $49.7 million.

Adam Aron, CEO of movie theater operator AMC Entertainment, has agreed with his board to cut his compensation target by 25% after complaints from his shareholders. However, the total compensation received in 2023 was $25.4 million (approximately 4.016 billion yen), an increase of 7% from the previous year, which included $17.9 million (approximately 2.83 billion yen) in stock compensation and 600 million yen in bonuses. This includes 10,000,000 dollars (approximately 949 million yen).

The compensation of Paramount Global CEO Bob Bakish and Netflix co-CEO Ted Sarandos decreased slightly, but remains at the same level as in 2022, each down 2% to $31.3 million (approximately 4.948 billion yen). It decreased by 1% to $49.8 million (approximately 7.873 billion yen).

According to executive compensation consulting firm Equilar , the average compensation for the CEOs of the 100 largest U.S. companies with the largest revenue sources will be $23.7 million (approximately 3,747 million yen) in 2023, an average increase of 11.4% compared to the previous year. %Rose. In comparison, CEO compensation at entertainment companies has nearly doubled, with an average increase of 24.7% for the eight companies listed above. 

Actors and writers went on strike for months in the U.S. entertainment industry last year, hurting movie production and distribution companies. Dozens of films have been postponed, many to 2025. Box office revenues have yet to recover to pre-pandemic levels. As for the 2024 U.S. box office revenue forecast, this month the forecast for the U.S. box office revenue has increased from approximately $8 billion (approximately 1.26 trillion yen) to $8.2 billion (approximately 1.3 trillion billion yen). Streaming has taken center stage when it comes to entertainment stock trends in 2023, but legacy company stock prices are generally below their peaks during the pandemic.

Lionsgate’s stock price rose 88% after it announced in December that it would acquire Entertainment One from Hasbro and separate the business from Startz in 2024. While Disney stock was flat in 2023, Netflix stock is up more than 60% for the year, and Comcast and Warner Bros. stocks are up 26% and 21%, respectively.

However, compared to their 2021 stock prices, Paramount has fallen by about 90%, Lionsgate by about 50%, Disney by about 40%, and Netflix and Comcast by about 20% each. Shares of Warner Bros. Discovery, Warner’s parent company, are down about 70% from their peak in 2022 when the combined entity was formed.

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