How rich is Hollywood? Richer and richer, at the top anyway.
The media industry's top executives reaped the benefits of a strong 2013 when companies like Fox, Disney and CBS all saw their stocks climb by double digits.
In TheWrap‘s annual look at executive compensation (did someone say over-compensation?) Lionsgate CEO Jon Feltheimer earned a stunning 97 percent increase in compensation to $12.6 million while Executive Chairman Sumner Redstone took home a jaw-dropping $93.4 million, driven by a similar pay boost at both his companies, Viacom and CBS.
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Redstone's chief executives at each company, Viacom CEO Philippe Dauman and CBS CEO Les Moonves, both enjoyed healthy pay increases as well.
“Sumner has paid Philippe and Les Moonves exorbitant amounts, and done it on the basis of paying ‘above average,'” Steven M. Davidoff, a professor at Ohio State University's Michael E. Moritz College of Law told TheWrap. ”But every year they move the average higher. It's a classic case study in excessive executive compensation.”
See All TheWrap Compensation Surveys: 2008 2009 2010 2011 2012
The disparity between media compensation and the high growth industry of technology remains vast, with the latter placing greater emphasis on a company's financial performance in determining compensation. Apple's Tim Cook, the CEO of a company worth more than Lionsgate, Viacom and CBS combined, earned $4.2 million, a 2 percent raise over the prior year. Facebook CEO Mark Zuckerberg took a pay cut in the same year Facebook skyrocketed, making less than $1 million.
Executives like Cook, Zuckerberg and Netflix CEO Reed Hastings make their money by cashing stock options. Zuckerberg made $2.3 billion in 2012 by doing just that.
The link between performance and pay is not as clear in Hollywood. In Feltheimer's case, his company's stock soared with the blockbuster successes of “Hunger Games” and TV sales. Though earnings at Viacom rose in 2013, revenue dropped by one percent.
Viacom's share price has more than tripled over the past few years, but family control over the company also permits Redstone to continue to line his and his executives’ pockets. Dauman earned a $16.9 million cash bonus in 2013.
“In Silicon Valley we're still strongly in the ethic of you work for the upside,” technology forecaster Paul Saffo told TheWrap. “The traditional model here is an options based one, without a doubt. It comes out of the whole venture capital model. The model is that a company's founders provide sweat equity and capital markets provide the money.”
9. Mark Zuckerberg, "Facebook" Chairman & CEO ($650K)
Facebook CEO and Co-Founder Mark Zuckerberg earned $651,165 in 2013, down from $2 million dollars in 2012. His base salary in 2013 dropped to the ceremonial $1.
Of course, Zuckerberg, like many who made their fortune in start-ups, carries the bulk in his money in stock options. In 2013, Zuckerberg exercised a reported $3.3 billion worth of those. So don't worry, his Facebook Status is still “Filthy rich.”
Also read: Facebook CEO Mark Zuckerberg Gets Visionary With Wall Street After Strong Earnings Report
8. Tim Cook, "Apple" CEO ($4.2M)
This might seem like a small pay day for the CEO of one of the world's most valuable companies, but most top Apple executives earn money through stock that they cash out later.
Apple's stock has taken a beating over the last year and a half, as the company has not released a game-changing product since the iPad. That was only four years ago.
Cook did receive fewer stock awards this year as a result of the company's poor performance, but he's still banking plenty.
Also read: Apple Sells Record Number of iPhones and iPads to Start 2014
7. Jon Feltheimer, "Lionsgate" CEO ($12.6M)
Jon Feltheimer's compensation doubled to $12.6 million, a 97 percent gain in a year Lionsgate enjoyed success from “The Hunger Games” and “Twilight” franchises and TV sales. His package included $1.3 million in salary, $6 million in bonuses, $3.6 million in stock awards, $1.5 million in non-equity incentives, along with less material amounts in other compensation.
Lionsgate shares jumped 70 percent in the fiscal year that ended in March 2013, justifying the hefty pay increase.
The CEO and the company are enjoying the financial boon came from TV shows including “Nashville,” the early repayment of the Summit Entertainment term loan, and the performance of ”Hunger Games” ($690 million in box office).
Also read: ‘Divergent’ Finale ‘Allegiant’ Will Be Split Into Two Movies
See the rest of the story at Business Insider