Another Reason Why This God-Awful Business Of Broadcasting Is In Such Trouble...

[AndyWaldrop]

CBS Corp.'s not-so undercover boss, Leslie Moonves, was awarded a total compensation package of $43.2 million for 2009, according to regulatory filings released Friday. The amount includes $3.5 million in base salary plus a $15-million bonus - CBS defended the compensation - Viacom's Sumner Redstone collected a total of $33 million in compensation. Viacom Chief Executive Philippe Dauman's total compensation for 2009 was $34 million.

And these same people are scratching their pointed little heads and wondering WHY this business is in such trouble! Give me a freakin' break!!!

 

[Dave E Crockett]

Radio is obviously in the hands of the accountants and no longer run by broadcasters. During a contract negotiation I was ripped by Dene Hallam for being "greedy." How does CBS justify tossing millions of dollars out in bonuses when many of their radio properties are reportedly under-performing? It sound like more clever accounting. They cut the workforce; Drop in ratings across the board in nearly all their markets, and yet that spells BONUS! I wish I had THAT contract.

 

[Goat Rodeo Cowboy]

You probably scratch your head that the whole corporate world.... not just broadcasting.... is paying CEOs an income that is so far distanced from what the average income is of all workers. That is a political and economic discussion as well as an ethics and religious thinking discussion that encompasses ALL INDUSTRIES today, not just broadcasting.

There are just under 14,000 radio stations in the US. How many are under the control of the men you have mentioned. Clear Channel, Cummulus and Citadel pay their key officers quite handsomely also. Add them all together and you have what.... 2,000, maybe as many as 3,000 radio station involved in this executive pay issue that has you agitated.

That leaves us with 11,000 or more stations that ARE NOT part of that picture.

If this "God-Awful Business of Broadcasting is in Such Trouble".... maybe there are other reasons. Why are the rest of the stations in such trouble?

 

[Dave E Crockett]

Really a great point. The real problem is that the companies you mention own 3000 or so Major or Large market stations. Smaller stations have always struggled to some degree. Radio has failed to stay as relevant as it once was. Little to no local news; Traffic sponsors that are longer than the actual traffic report, etc. Plus the industry as a whole shot itself in the foot by pushing way too many commercials and sponsor mentions down our throats. Radio's main issues surfaced after deregulation when a lot of the rules changed. The corporate owners seized the opportunity to maximize their profits, again mainly in the major and large markets, making the stations un-listenable. The backlash affected the entire industry.

 

[michaelshiloh]

And in a recent Inside Radio poll, 76% of respondents said radio in general is going in the wrong direction; 24% said radio is making "the necessary changes to ensure its survival and is on the right track."

My favorite quotes among the replies to the survey, because they seem true based on what I've seen:

“If the industry was a car, on each fill-up of gas, the owner would be putting a dime less gas in the tank and expecting more mileage,”

"The turnover rates for station sales staffs are embarrassing and the training for new sellers is minimal leading to an ever increasing pool of
former prospects saying, 'I tried radio and it didn't work'."

 

[20ozwilliehoppe]

Mr. Waldrop, thanks for those incredible stats. Anyway you could find out how much Dan Mason made last year? He supposidly is where the buck stops when it comes to CBS radio outlets. Come to think of it, maybe a lot of bucks stop at his desk, bucks saved by gutting stations and tossing people out in the street. Somebody said Danny used to work in Houston.
You would think he would better understand the uniqueness of the market. Maybe I'm wrong, maybe he took a paycut to relfect what's happening on his watch......ya think!

 

[smartestguyintheroom]

Mason was GM of KFMK (now KBXX) in the late 80s or so. It's tough to think about paying one guy $43+ million a year. Remember though, Les (may I call you Les?) is CEO for CBS, Inc. Meaning he runs the number one TV network which makes more profit than radio can dream about. So while he does oversee radio, most of his comp is probably based on the performance of the TV network production facility, their cable assets etc. Still, $43 million is a lot of dough.

If you want to look at the most over paid radio CEO, look at Farid Suleman from Citadel. This guy leads a company HE ran into bankruptcy and still makes his $17 million a year, plus perks like private jet, having his taxes paid on the $17m comp and others. Or look at Lew Dickey. Literally laid off hundreds of employees in 2009 so he could make his $10 million. Then got an additional $500k as a bonus for operating his company. Then consider the Mays brothers perpetually self renewing deals with 7 years severence if they get whacked.

Stacked up against Les's $43 million to run the entire CBS, Inc...which returns a profit to it's shareholders, Farid, Lew, Mark and Randall are really way overpaid with no justification whatsoever for their compensation.

 

[davideduardo]

Radio is obviously in the hands of the accountants and no longer run by broadcasters. During a contract negotiation I was ripped by Dene Hallam for being "greedy." How does CBS justify tossing millions of dollars out in bonuses when many of their radio properties are reportedly under-performing? It sound like more clever accounting. They cut the workforce; Drop in ratings across the board in nearly all their markets, and yet that spells BONUS! I wish I had THAT contract.

In 2009, CBS, Inc. had operating income of $1.01 billion and net income of $226.5 million.

The local radio stations contribue less than 10% of the revenue today. The profits came from TV, outdoor, publishing, etc.