BigChampagne's Ultimate Chart (a/o February 10th):
1. “What Doesn't Kill You (Stronger),” Kelly Clarkson
2. “Set Fire to the Rain,” Adele
3. “Turn Me On,” David Guetta
4. “Rack City,” TYGA
5. “Good Feeling,” Flo Rida
6. “Smooth Criminal (Glee Cast Version),” Glee Cast
7. “Young, Wild & Free,” Snoop Dogg & Wiz Khalifa
8. “Domino ,” Jessie J
9. “Sexy and I Know It,” LMFAO
10. “Ass Back Home ,” Gym Class Heroes
The RIAA can hardly be categorized as a glowing success story, yet its CEO now earns more than $2 million in annual compensation. According to year-2008 federal tax filings shared over the weekend with Digital Music News, RIAA chief Mitch Bainwol raked an impressive $1.91 million in annual pay, with "other compensation" from the RIAA and "related organizations" offering another $123,000.
This represents a sizable increase in a short amount of time. In year-2006, Bainwol was paid roughly $1.5 million, also according to tax filings reported two years ago by Digital Music News. The latest taxation documents will be published early this week following certain clearances.
The discovery of the gargantuan salary follows the discovery of similar nosebleed compensation packages at SoundExchange, though the Bainwol take-home easily takes the cake. At SoundExchange, a handful of executives were clearing $350,000 in year-2008, including now-exiting head John Simson.
One argument is that real talent requires real compensation, as determined by the price other employers - regardless of industry - are willing to pay. The other argument is that massive salaries like these are simply too expensive for an industry in distress, and high-priced stars need not apply. In the case of the RIAA, major labels are paying the tab, while at the same time shaving their own ranks to reduce overhead. That includes efforts to curb legacy compensation packages like this one, borne in a totally different era.
Digging a bit deeper, others at the RIAA are also making large amounts of money. That includes president Cary Sherman, who pulled down $1.33 million during the same period. Other heavy-hitters were not hard to find, including Neil Turkewitz (EVP, International), who grabbed $696,000; Mitch Glazier (EVP, Government & Industry Relations), who pulled $566,000; and Steven Marks (EVP & General Counsel), who received $562,000.
On top of that, a total of seven staffers are making salaries between $200,000 and $500,000. More details ahead.
Comments Closed
Maxwellian Sunday, July 11, 2010
Astonishing. I used to think the majors were changing and that some different executives were trying to turn things around. Then I see something like this, and realize it's totally untrue.
Ignacio Sunday, July 11, 2010
The RIAA actually outsources lots of its legal work, and I know the outside firms get tons of money. It's a money-suck plain and simple.
Also, I'm curious who's making these decisions, and how could a label like EMI even afford this salary. Bainwol's smart one, he gets paid until they go out of business, then starts lobbying for another industry.
bydesign Sunday, July 11, 2010
think about this. if the RIAA were abolished tomorrow, replaced by a small group of 5-6 people who knew this business (and there are so many out of work talented record executives) they would probably have more impact. they'd come up with a much better strategy overnight, and maybe get something done. they are paying millions for a D.C. insider who's just going to move to the next industry once the labels finally go out of business. but it better be an industry rich enough or stupid enough to pay that salary.
Reality Check Monday, July 12, 2010
These numbers are absolutely meaningless without context. Perhaps it might be helpful to compare these salaries to those of top executives at other lobbying organizations. You really can't compare how much a lawyer or a lobbyist makes with a sound engineer or a record store clerk. You think you could have five or six laymen with plenty of knowledge about the music busines but zero knowledge about the law, policy considerations, or politics do this job? Give me a break. You need people with law and policy experience (hence Sherman/Marks coming from prestigious DC law firm Arnold & Porter and Bainwol coming from a lobbying firm, where I'd say there is a good chance they all were (or would be) making more than what they are making at the RIAA). And $350,000 for Simson is chump change for a person with as much insight and law, policy, management, and label experience as John.
Basic labor economics people. As a former record label employee making $40,000/year, and a recent law school grad studying for the bar and $180,000 in debt, I completely sympathize.
I have a feeling that RIAA bashing has a tendency to overpower simple logic.
bydesign Monday, July 12, 2010
right, that is definitely a good point and I think the article mentioned that. but i ask, what are all these expensive lawyers really doing? not saving record sales that's for sure. no traction on ISPs, lawsuits against fans, antagonistic judges... think about that: if the RIAA didn't exist, the situation might be better for majors.
jbedbus Monday, July 12, 2010
The idea that ANY context justifies over $2 million annual salary is completely absurd, and only goes to show the extreme degree to which we've lost our way, in this industry and this country.
I'm always amused when those with industry experience claim to be "in the know," when it is exactly that experience which puts them into the "don't get it" category.
iDream Studios Monday, July 12, 2010
We've all heard this story before. Let's get together and change the industry so that the talent earns the big bucks as the production companies support the talent (rather than steal from it).
http://idreamstudiosinc.com/aboutus.htm
@iDreamReacher
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