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TVInews - 102 In world of the one-figure $1-dollar per year salary. Kenneth Lay and his Enron Texas Trial Testimony about "high salaries." The Sergey Brin, Larry Page, Eric Schmidt, Richard Kinder, Steve Jobs, Jeffrey Katzenberg, and George Clooney crowd are paid $1-dollar per year. The Writers Guild, Silicon Valley. The big difference in "earning and making money is simple," -- MORE STORY
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Until now, none of the status symbols of Wall Street, Silicon Valley nor Hollywood, would dare publish the $1-dollar salaries paid to their CEOs. Did it have something to do with China's President, Hu Jintao's salary of only $200 per month, or Schwarzenigger taking no salary as the governor of California?
When companies file their annual reports disclosing how much they pay their Company heads -- they would inevitably ignite an outrage about exorbitant executive salaries -- consider Google, Disney and movie producer/actor, George Clooney.
Despite the high stakes, Wall Street seems barely to have noticed the danger posed by the $1-dollar per year salary, especially after Enron's indicted ex-CEO, Kenneth Lay, was asked by the prosecutor, "if he planned to repay the $7.5 million he still owed on an Enron line of credit."
Besides his bonuses, the loan had been one of Lay's perks as chairman. He explained the reasons for his high salary and million dollar annual bonuses, was to pay back the high credit line given to him by Enron to buy stock in Enron and a few start-up companies doing business with Enron, and resell the stock to Enron.
After several days of grillings, Lay admited to selling $70 million of his Enron stock back to Enron to pay down a line of credit he had with the company in the amount of $7.5-million. Evidence shows he racked in about $62 million on the sale.
But the signs are there, for those inclined to read them in world of "high salaries and court proceedings in Texas." After the Enron and Adelphia loan perks are long and gone, few status symbols will ever compete against the one-figure $1-dollar per year salary now paid to Googlers Sergey Brin, Larry Page and Eric Schmidt; Richard Kinder, Steve Jobs, Jeffrey Katzenberg, and George Clooney.
All represent the following respective corporations: Google, Richard Kinder is the co-founder of energy company Kinder Morgan Inc., Steve Jobs, Apple Computer Inc. Jeffrey Katzenberg, Chief Executive of DreamWorks, George Clooney, Clooney Productions.
Today, in Hollywood, the external enemy of the film industry, are the trade unions and the ability of outside digital technology to project images on the big screen. The people taking advantage of this fear-factor, are the Internet users, the DVD manufacturer, banks and the FCC.
"For example," says Troy, "it was just announced this 39th week, the last weeks of Michael Eisner, heading Disney -- the company created Kingdom Films to entice Credit Suisse First Boston to raise the financing for making films. The bank will provide 40% of production and distribution costs for about 32 films over the next four years, and will receive 40% of the film profits, including from box-office and video sales."
"For instance, take the cost of movies, it is so great that sharing a little risk is not such a bad idea," said people close to the deal. The parlaying of movies for $$$$, guarantees Disney distribution fees and 60% of the profit. Disney last week said its film unit would have a fourth-quarter loss of as much as $300 million.
Disney shareholder reaction to the increases in compensation is largely subdued. Of course, these Disney executives were not company founders.
Today most of "real" company founders -- have something else in common, they have been put been put into the self-employed category by popular stockholder demands. They are also the first to admit they are rich because, thanks to ownership stakes in the companies they helped build, they are billionaires, as evidenced in Forbes Magazine.
Why! It was just last year," admitted one billionaire, "I needed the $96-million dollar salary and $100-million bonus just to pick up my stock-options to show our investors we had buyers for our Wall Street listed stock.
Salaries are always instructive and a measurement of success, though often ambiguously so. The only thing worse than pretending that life began on the day of our birth is the notion that it can be lived as an endless series of analogies to the past. Salaries, in other words, is not an oracle. It informs but does not direct; it influences but does not determine.
Morgan and his banks in the 20th century were defeated through confrontation. Rockefeller's successors were defeated through containment. Which is the correct formula to apply to contemporary analogies that might fit the economical straits today's investors are finding themselves.
Before the "cashless and click society," was picked up by the Dot Com, and before the Fannie Mae real estate bubble popped, the only thing money bags were used for, were to hold cash dollars printed on paper.
It was at a time "when the buck stops here" -- meant something to the investor and the bank. It was a time when the dollar gained real currency value -- not a manufactured book value manipulation by bookeepers and published by Forbes Magazine. It communicated the importance of personal sacrifice in inflationary times.
Now, the dollar sends a different message: Because many of today's corporate leaders own so much of the companies they run, their personal fortunes are tied to corporate success. They succeed when the company does.
"It's a gesture to the shareholders saying 'I've got more money than I could spend in 52 lifetimes -- just pay me a dollar and I'm happy enough,' " said Graef Crystal, an executive compensation specialist.
Google founders Brin and Page have cashed in $2.2 billion and $1.8 billion, respectively, in company stock since taking the company public in 2004, and CEO Schmidt has pulled in $645 million, according to Thomson Financial. The founders each hold nearly $13 billion in stock, and Schmidt's shares are worth about $5 billion.
Part 02 / Hollywood Movie Busines / FOR NON-FOUNDERS OF A MOVIE STUDIO IT'S A DIFFERENT STORY -- In Hollywood, it was George Clooney who first described the formula for $1-dollar salary per picture deal.
In George Clooney's, "Good Night, and Good Luck," -- Clooney not only co-wrote, produced, and directed the film, but he plays the role of (Fred Friendly) -- the producer of the top rated CBS news show of the 50s, "See It Now".
Section 8, a company created by Steven Soderbergh and Clooney, in 1999, was the primary producer and the Todd Wagner and Mark Cuban's 2929 Entertainment organization, was contracted to provide the cost for production and distribution.
Parlaying Movies - for $$$$$.
In a way, Clooney has been able to carry on that independent spirit developed by those in the film industry, that is creating updated ways to produce socially and politically relevant films -- that have faded since the '60s and '70s.
As the story goes, a tan, talkative and friendly Clooney, while sitting inside his dimly lighted cottage on the Warner Bros. studio lot in Burbank, explained the parlaying movie process this way to film and finance the 1954, Murrow vs McCarthy event.
"I'm in the enviable position of being able to force studios to make films that they wouldn't ordinarily make," he said. Besides citing "Good Night, and Good Luck," he mentioned his movie production, "Syriana," a political thriller set in the Persian Gulf, which he used to help persuade Warner Bros. to co-produce, by agreeing to take no upfront dollars as the principal actor in the movie. CLICK TO SEE MORE Movies For $$$$$ STORY.
On January 12, 2006, Walt Disney announced that its Chief Executive Robert Iger got not only a big promotion last year but also a pretty nice raise.
According to the company's proxy statement made public, Iger's annual salary jumped 33% to a minimum of $2 million when he took over as CEO in October.
Under his new five-year employment agreement, Iger also will be eligible for an annual bonus of $7.25 million, depending on Disney's growth. He also received 500,000 shares of restricted stock that is tied to Disney's long-term performance.
That pay bump comes after Iger earned a $1.5-million salary, $7.7-million bonus and $500,000 restricted stock grant as Disney president, the No. 2 job, during the 2005 fiscal year ended Sept. 30. He also received stock options for 274,241 shares.
Departing CEO Michael Eisner didn't do so badly himself, according to the filing.
Since then, it has largely been adopted by CEOs trying to restore shareholder confidence in their struggling companies, like Lee Iacocca started at Chrysler.
Like Iacocca, in the late 1970s. Gerrold Perenchio, chairman and CEO of Univision Communications Inc., passed on the buck. He draws no salary at all, but his ownership stake in the Los Angeles-based Spanish-language media company is worth nearly $1.3 billion.
"They're not working for free," say those in the know. "Saying it's a dollar salary doesn't really get to the fact that they're all having outside income produced by their stock-ownership or Family Trust."
3. Editor's Note / Cash Deferments Silicon Valley vs Writers Guild Cash Deferment 107PayDerferredWritersGuild / Writers on Low-Budget Films to Get Guild Pay.
On January 19, 2006, the Writers Guild of America said it was extending union pay and benefits for the first time to writers of low-budget feature documentaries.
The contract is aimed at writers of films with budgets of less than $1.2 million. Affecting about 100 writers, the agreement allows producers to partially defer compensation to the documentary writers who are not also employed as directors or producers.
Documentaries have been increasing in popularity, with more than 130 documentaries released in 2005, up 90% from 2002.
The same gestures made by Silicon Valley, was often undercut by corporate boards granting those CEOs hefty awards of stock options that could be sold with only a mild stock-market recovery. Buck-a-year chiefs who reaped stock-option windfalls include John Chambers of Cisco Systems Inc. and Tom Siebel of Siebel Systems Inc.
Larry Ellison of Oracle Corp. gave up his salary for 2001 through 2003, when the company's stock was struggling, but he cashed in $706 million in stock options in 2001 and $41 million in 2003.
Jobs' current Apple shares are worth $670 million. Kinder is due to pull in $84 million this year in dividends from his Kinder Morgan stock.
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TVI Magazine, tviNews.net, YES90, Your Easy Search, Associated Press, Reuters, BBC, LA Times, NY Times, VRA's D-Diaries, Industry Press Releases, They Said It and SmartSearch were used in compiling and ascertaining this Yes90 news report.
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Yes90 tviNews S90 102 In world of the one-figure $1-dollar per year salary. Kenneth Lay and his Enron Texas Trial Testimony about "high salaries." The Sergey Brin, Larry Page, Eric Schmidt, Richard Kinder, Steve Jobs, Jeffrey Katzenberg, and George Clooney crowd are paid $1-dollar per year. The Writers Guild, Silicon Valley. The big difference in "earning and making money is simple," -- MORE STORY NEWS Convergence - 18th Week of 2006 Spring Issue / Feature Story / 102GoogleClooney$1Dollar.htm / Smart90, lookradio, nbs100, tvimagazine, vratv, xingtv, Ddiaries, Soulfind, nbstubblefield, congming90, chinaexpo, vralogo, Look Radio, China Expo, Soul Find, s90tv, wifi90, dv90, nbs 100, Josie Cory, Publisher, Troy Cory, ePublisher, Troy Cory-Stubblefield / Kudoads, Photo Image665, Movies troy cory show duration:medium:free - 4 min - Television With No Borders
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