Saturday, June 20, 2015

Money Streams: How Much the People Behind Digital Music Earn

Money Streams: How Much the People Behind Digital Music Earn:

money bag
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Billboard followed the money to determine who's pulling in the largest (and smallest) paychecks in the industry: from the tens of millions in equity awards reaped by Apple executives to a radio-station mascot's minimum wage.

* CEO -- Pandora chairman/CEO Brian McAndrews’ $500,000 salary is small compared with that of many record-label heads, but like many executives in this sector, he makes most of his money from performance-based incentives. (In order to tie compensation to performance, companies have increasingly paid top executives with stock-based rewards.) In 2014 he earned a $455,000 bonus on top of his salary, plus "Other" compensation of $25,448. In 2013 he was given stock and option awards valued at $28.8 million. But those numbers can be deceiving, because they hold only paper value until exercised. Pandora shares have lost half their value since their early-2014 peak of $39.31, but moving the company into the black could make McAndrews millions.

All salaries are annual unless otherwise specified.

Reporting by Jem Aswad, Megan Buerger, Ed Christman, Shirley Halperin, Andrew Hampp, Glenn Peoples, Alex Pham, Jeff Rabhan, Phyllis Stark and Ray Waddell.

This story first appeared in the June 27 issue of Billboard.