Hollywood is a larger-than-life model of company America, particularly for executives. Median CEO compensation throughout all industries within the U.S. will attain $29.4 million in 2025, in keeping with a examine by knowledge agency Equilar. However high leisure executives are among the many lowest paid, in keeping with The Hollywood Reporter’s annual survey of the highest-paid media executives. Lots of the moguls on our checklist earn round $50 million. Or much more.
Not solely that, however the employee-to-CEO pay ratio is increased within the leisure trade. Throughout all industries, the salaries of 341 staff equal the take-home pay of 1 CEO. For a lot of the main Hollywood corporations tracked on this checklist, the median is way increased (assume 805 to 1 for former Disney president Bob Iger). “A lot of this excessive compensation comes from stock-based compensation,” mentioned Amit Batish, an govt at Equilar.
Main the cost was David Zaslav, who offered Warner Bros. Discovery from $9 a share to David Ellison’s Paramount in a bidding struggle for $31 a share. His $165 million wage final 12 months is exceeded solely by his $246.6 million 2021 compensation from a contract extension and $202 million inventory choice grant associated to the WarnerMedia merger. And in each years, his golden parachute is much extra necessary, with a complete that would vary from $550 million to $887 million, relying on the worth of his inventory choices and when the mega-deal is accomplished. (In a non-binding vote on April 23, 82% of WBD shareholders rejected Zaslav’s parachute soar.)
“Golden parachutes aren’t essentially uncommon, however one thing this massive is unprecedented,” mentioned Jun Frank, head of compensation and governance providers at ISS-Company. “Many of those withdrawal packages may be very controversial as a result of they’re very costly, and sure clauses equivalent to last-minute sweeteners have a tendency to lift larger considerations,” it added.
Meet one of many leisure trade’s latest captains, Paramount CEO David Ellison. His Skydance accomplished its acquisition of the venerable Hollywood firm in August. Because of this mega-deal, he was in a position to amass a large compensation bundle of greater than $60 million final 12 months, regardless that most of it was inventory compensation over 5 years, catapulting him into the sector’s high payday ranks.
Comcast head Michael Cavanagh’s rise continues, with a bundle of greater than $70 million that places him on the high of the leisure trade’s annual checklist of high govt compensation for 2025.
A lot of Mr. Cavanagh’s compensation was within the type of inventory awards, much like Mr. Ellison’s, and far of it was tied to his promotion to the co-CEO function in December. As a result of these stock-based awards are based mostly on honest worth on the date of grant, they could find yourself being price considerably much less or extra relying on inventory worth actions.
“Govt compensation is rising throughout U.S. corporations,” mentioned Chris Crawford, managing director of govt compensation at consulting agency Gallagher. “Whether or not it is volatility or mergers, that are taking place throughout the leisure trade proper now, these components will end in bigger one-time packages, together with new hires, promotions and outgoing managers.”
ISS-Company Media & Leisure, an arm of proxy advisory agency Institutional Shareholder Providers (ISS), additionally reviewed among the previous 12 months’s early pay knowledge, specializing in 318 corporations listed within the broader S&P 500 inventory index whose CEOs held the identical function up to now submitting 12 months. Corporations within the media and leisure sector that match this standards noticed the most important will increase in CEO compensation, with a median improve of 117%, however median whole shareholder return, a measure that examines inventory costs and dividends, decreased by 28.6%.
Lawrence Cunningham, director of the Weinberg Company Governance Middle, advised THR: “Media compensation tends to be increased than the median for company America for quite a lot of causes, together with an trade flash that enhances the CEO’s core abilities equivalent to capital allocation, administration, and management, in addition to creativity and character.”
CEO pay charges at a few of Hollywood’s largest corporations additionally outpace broader traits at company America. This ratio is calculated by evaluating an organization’s CEO wage to the median worker wage. Starbucks CEO Brian Nicol realized the satan was within the particulars when he revealed that the espresso chain earned 6,666 occasions the median worker earnings in 2024. Hollywood would not cope with these beasts sufficient. Nonetheless, among the many Equilar 100 corporations, the CEO pay ratio rose to 341:1 in 2025, a rise of 13.7 proportion factors from 300:1 in 2024. And as THR’s chart reveals, high executives at Paramount, Cinemark, TKO, Disney, Comcast and extra are above this median.
Nonetheless, specialists say it is tough to check pay ratios. In spite of everything, CEO pay is based totally on fairness, and median worker pay is usually based mostly totally on money. “In lots of instances, you may anticipate that the ratio of CEO pay to median pay would infuriate rank-and-file staff, however you assume rank-and-file staff find out about it, however you do not know in the event that they’re at all times knowledgeable in regards to the knowledge and the underlying foundation,” mentioned Lawrence Cunningham, director of the Weinberg Company Governance Middle. “Excessive CEO pay doesn’t mechanically imply unhealthy governance, however when pay is unusually excessive, we have to look carefully at administration, board, and shareholder votes.”
“There’s a variety of CEO pay charges,” mentioned Crawford, an knowledgeable at Gallagher Consulting. “There isn’t any good solution to examine. Some corporations have plenty of front-line staff, so the distinction between their median worker and CEO pay ratios goes to be this a lot bigger in comparison with expertise, biotech, or engineering corporations, which can have extra professional-level employees. Additionally, if an organization is international and has plenty of worldwide staff, the distinction in CEO pay ratios is more likely to be increased as nicely.”
Mr. Zaslav’s employee-to-CEO pay ratio would have been even increased at 1,378 to 1 with out the adjustment from the one-time inventory choice grant. Nonetheless, provided that 2025 is more likely to be his last 12 months on the high of the leisure trade powerhouse because of his sale deal to Ellison’s Paramount, the Warners president is more likely to hand over the function of trade compensation lightning rod to another person quickly, with Paramount anticipated to finish the deal this 12 months.
Hollywood Labor Commissioner Wage
THR Picture Illustration/Fraser Harrison/Getty Photos
Almost all union executives in Hollywood obtained raises of 10 % or extra in 2025, in keeping with a report submitted by the leisure union to the Division of Labor. SAG-AFTRA Head Duncan Crabtree-Eire? Up 10.27%. Russell Hollander, chief of the Administrators Guild of America? Elevated by 10.48%. IATSE Worldwide Chairman Matthew Loeb? It is a 10.45% improve.
The one exception to this pattern is the management of the Writers Guild of America, the place WGA East Regional Director Sam Wheeler is a relative newcomer and didn’t obtain a paycheck from the union in 2024. Moreover, WGA West Regional Director Ellen Stutzman obtained a 12.53 % elevate, which can have one thing to do with the truth that this pay interval coincided along with her formal recognition by membership because the WGA’s high employees member in September 2024. The union’s board appointed her to the place in 2023 after former president David Younger resigned. )
In 2025, SAG-AFTRA’s Crabtree Eire as soon as once more took the respect as Hollywood’s highest-paid employee chief, incomes a wage of $1,120,502. He was adopted by DGA’s Hollander ($883,873), WGA West’s Stutzman ($768,257) and IATSE’s Loeb ($611,326). After all, the pay of union leaders nonetheless pales compared to that of Hollywood CEOs, however not unhealthy for a 12 months through which no union has launched into one of many main minimal fundamental settlement labor negotiations with studios and streamers.
However the elevate is notable in a 12 months through which many unionized Hollywood employees struggled or misplaced their jobs amid the trade’s downturn. Commerce unions usually argue that employers can’t be compelled to create jobs, and that good working circumstances can solely be created if jobs can be found. Whereas that’s true, it’s also true that we will play a task in encouraging employers to work domestically by means of contract provisions and coverage advocacy.
Relating to the latter, Hollywood unions have been very energetic in 2025, in the end contributing to a $750 million improve in California’s movie and tv tax credit. Nonetheless, the union seems to have nonetheless discovered area in its price range to reward its leaders, even when occasions are powerful for a lot of of its members.
These charts have been revealed within the Could 6 situation of The Hollywood Reporter journal. Click on right here to subscribe.
