How are the major labels innovating into the future?
By rewarding the executives who are fucking things up the most.
According to the latest tax filings, Universal Music Group, Sony Music Entertainment, and Warner Music Group are paying the head of the RIAA Cary Sherman an annual take-home of $1.63 million, despite drastic chops in label dues, massive layoffs at the organization, a serious defeats on Capitol Hill.
Other top RIAA execs, including Executive Vice President Steven Marks and Senior Executive Vice President Mitch Glazier, are both making well past $700,000 annually. Even the head of PR, Jonathan Lamy, makes close to $400,000.
The most amazing part is that over the past few years, the RIAA has slashed its headcount by over 50%, from nearly 120 employees down to 55. At present, the trifecta of Sherman, Marks, and Glazier account for more than 25% of total payroll.
There are very few people that are actually qualified to lead large organizations, hence the salaries. I learned this from a rocket and missile scientist, laser guided patent holder, project manager retired from Northrop. I am guilty, too, of the sticker shock gasp before I investigated the issue of executive compensation. I find it difficult to assess things without digging into the nuts and bolts, and it helps to avoid surface assumptions.
You are absolutely correct but it means that music industry is just out of luck. Very unfortunate lineup.
This ain’t rocket science.
There are many, many people that are actually just as qualified to lead the RIAA, as Cary Sherman is – and they would be MUCH cheaper. I’m not suggesting that Sherman is doing a bad job. Just noting that he hasn’t done anything to make the RIAA any more effective, yet he’s getting paid a ransom for literally just staying the previous course (which is a decidedly downward trajectory).
The RIAA isn’t a “large organization.” It’s 55 people.
If you want to dig into the nuts and bolts, in order to avoid surface assumptions, you should know that:
a) This is an exorbitantly high salary, by Washington D.C. trade organization standards, and
b) Right about when he first took over the RIAA a few years ago, he was paid twice this amount, in one year, justified as largely “deferred compensation.”
As my name states, tcooke, whoever you are, you are an idiot sir. There are exactly zero justifiable reasons why the head of a barely functional bureaucratic institution should be payed this much. Unless you think it was totally legit that 1.2 billion dollars went to executive management in the 2008 financial collapse, which if you do (ill say it again yo) you’re an idiot.
Just a heads up, you CAN run companies and NOT choose to pay yourself way too much. People do it everyday. It’s called “not sucking”
…AND HE DOES NOT ANSWER ANY EMAILS OR WRITTEN CORRESPONDENCE!
He belongs to same pack of feudal lords sitting on the thrones of almost dead labels.
If you talk to much his overpaid servant in charge of public relations will block you from seeing RIAA on Twitter!
This tells me that the one of the best things to do it don’t be an artist, musician, or a producer, just pretend your trying to help the industry while in reality most artists are making less money than at any point in history. What a wonderful business we have these days! Many are now paying to play instead of getting paid to play! The grave for the music industry has already been dug and it’s just a matter of time before everybody’s buried!
This tells me that the one of the best things to do it don’t be an artist, musician, or a producer, just pretend your trying to help the industry while in reality most artists are making less money than at any point in history. What a wonderful business we have these days! Many are now paying to play instead of getting paid to play! The grave for the music industry has already been dug and it’s just a matter of time before everybody’s buried!
The RIAA are visionary prophets. It only took 35 years, but home taping DID finally kill music!!
Look at those salaries. Talk about piracy. Jeez.
Those fax machines don’t replace their own toner.
Facts:
1. Cary is at the top of his profession and this compensation does not even crack most lists of top association executives. He
2. Cary was a partner in one of the most prestigious law firms in DC, has an incredible knowledge of copyright law and has worked since then building up years of experience and credibility at the RIAA.
3, These forms overstate compensation as they count deferred compensation twice – the year it is booked by the RIAA and then again the year it is given. Impossible to know which of the above from the filing.
4. Non profit executives cannot by law own company and get benefits of equity ownership – thus they are often paid more than their counterpart ceos in private world.
5. Non-profit association compensation correlates highly with the ceo compensation for their industry. Record company executives make big money as they manage government granted monopoly of copyright!
matches industry figures
He what?