The compensation of CEOs of some of America’s largest entertainment firms significantly outpaced that of the average chief executive at the country’s largest companies in 2023, with the top executives at Disney, Warner Bros., Netflix, and five other companies earning an average of $34.8 million, according to new data. The CEOs of five of the largest public entertainment companies saw their compensation rise by more than 20% from 2022 to 2023. Lionsgate CEO Jon Feltheimer experienced the largest jump, with his total compensation increasing by 284% to $21.5 million, largely due to a $10 million cash bonus.
Bob Iger, who returned as Disney’s CEO in 2022 before going full-time in 2023, saw his earnings jump by 110% to $36.1 million. This was still less than the $45.9 million he was paid in 2021 before retiring from the company for the first time, primarily due to a drop in Disney’s share prices. Netflix’s Greg Peters, who was made co-CEO in 2023, also saw a 29% increase in his pay to $40.1 million. Comcast chairman and CEO Brian Roberts earned $35.5 million in 2023, a rise of 11%, while Liberty Media CEO Greg Maffei’s pay increased by 28% to $28.7 million, and Warner Bros. CEO David Zaslav was paid $49.7 million, up 26.5% from the previous year.
AMC Entertainment CEO Adam Aron saw his compensation increase by 7% to $25.4 million after agreeing to cut his target compensation by 25% to appease shareholders, showcasing the impact of shareholder pressure on executive pay. Paramount Global CEO Bob Bakish and Netflix co-CEO Ted Sarandos experienced slightly lower pay in 2023, with Bakish earning $31.3 million (down 2%) and Sarandos receiving $49.8 million (down 1%). Meanwhile, according to Equilar, the average pay for CEOs of the 100 companies with the largest revenue streams in 2023 was $23.7 million, with a rise of 11.4% from the previous year, highlighting the significant increase in entertainment CEO salaries.
Production companies and distributors faced challenges such as actors’ and writers’ strikes and box office earnings that have yet to return to pre-pandemic levels in 2023. Despite these obstacles, the domestic box office reached $9 billion by the end of the year, surpassing expectations and providing some optimism for the industry’s recovery. Streaming platforms played a significant role in the entertainment sector’s performance, with companies like Lionsgate and Netflix experiencing stock gains. While streaming platforms fared well, shares of legacy companies like Disney and Paramount faced declines from their pandemic peaks, reflecting the shifting landscape of the entertainment industry.
Looking ahead, early box office projections for 2024 estimate domestic sales to reach around $8.2 billion, showcasing continued optimism for the industry’s recovery. Companies like Disney and Universal have added new films to their release calendars, indicating a proactive approach to driving audience engagement and revenue. As the entertainment sector continues to navigate challenges and seize opportunities in a rapidly evolving landscape, executive compensation will likely remain a topic of scrutiny and discussion among stakeholders and shareholders.
