Study: Entertainment CFOs have lowest job security
December 19, 2023
The Music and Entertainment Industry boasts the highest paid Chief Financial Officers in the US, hitting a high of $52.4 million (€47.8m), a study reveals.
Datarails, the financial planning and analysis (FP&A) platform for Excel users, analysed SEC filings by 1,639 of the biggest US listed companies. This included complete filings for 2022 and partial filings for 2023 in its study, CFOs and the C-Suite.
The study shows the highest paid CFO in the US is Joe Berchtold of LiveNation (52.4 million) –including salary, bonuses, stock awards and options. LiveNation’s CEO is also the highest paid CEO in corporate America.
The second-highest paid overall CFO in the US was Michael J Cavanagh of NBCUniversal-owned Comcast who saw $41 million in compensation in 2022. In January 2023, Cavanagh passed the CFO role onto Jason S. Armstrong after Cavanagh was named president of the company.
But at the same time the entertainment industry has the lowest job security for CFOs. Movie and entertainment CFOs last only 2.9 years out of the past 5 years (2017-2022). Only casino and gaming CFOs (2.8 years) and restaurant CFOs (2.6 years) had lower job security the study finds.
Cases of high turnover include AMC Network which got through four CFOs in five years. CFO Sean Sullivan who stepped down in October 2020 was replaced briefly by interim CFO Donna Coleman, replaced in January 2021 by Christina Spade as Chief Financial Officer. Spade herself, moved up to a short tenure as CEO, was replaced by Patrick O’ Connell in August 2022. Elsewhere WWE (bought by TKO) got through three CFOs in five years. Netflix, Disney and Paramount have seen through two CFOs a piece in this five-year period.
In some cases this reflects fractured CEO-CFO relationships – the departure of Disney CFO Christine McCarthy (pictured), came amid reported clashes with CEO Bob Iger according to reports while WWE got through three CFOs in five years and saw former Kristina Salen dispensed with after a little over a year in November 2021 amid reports of internal rifts.
Overall the CFO position contrasts unfavorably with companies’ Chief Operating Officers and Chief Technology officers who remain in place for 4.45 and 4.39 years followed by a company’s General Counsel (4.19), CMO (4.00), and CEO (3.55 years).
Completing the list
Completing the top paid CFOs in entertainment, third highest placed CFO in the entertainment industry based on SEC filings by the end of 2022 was Christine McCarthy until she stepped down in June 2023 ($20.2 million). In November 2023, she was replaced by Hugh Johnston, former vice chairman and CFO of PepsiCo, achieving a similar compensation of at least $19 million (a base salary of $2 million, a stock award of $14 million and a $3 million one-time signing bonus). Rich Bressler at iHeartmedia got to $15.5 million compensation (a 103 per cent increase from the previous year)