Ticketmaster is one of the largest ticket sales and distribution companies in the world. Founded in 1976, it sells tickets for concert, sports, and theater events on behalf of clients across North America and abroad. Ticketmaster has exclusive deals with many major venues and artists to sell their tickets. The company has faced criticism over the years for high fees and lack of competition in the industry.
As the head of this major global company, the Ticketmaster CEO likely receives significant compensation. Publicly traded companies like Ticketmaster are required to report the salaries of their top executives. While Ticketmaster does not disclose exact numbers, we can estimate the CEO’s pay based on average compensation data.
Average CEO Salaries
Most CEOs of major corporations earn seven-figure salaries. According to the AFL-CIO, the average CEO of an S&P 500 company earned $15.5 million in 2020. The median CEO salary was $13.4 million. These numbers may seem outrageously high, especially compared to average worker pay. However, leading a multi-billion dollar global company requires significant expertise and experience.
Some of the highest paid CEOs include:
– Tim Cook of Apple – $98.7 million
– Reed Hastings of Netflix – $38.6 million
– Satya Nadella of Microsoft – $42.9 million
– Sundar Pichai of Alphabet – $240 million
– Leonard Schleifer of Regeneron – $135.4 million
Salaries tend to be particularly high in the media, entertainment, and tech industries. As a global entertainment services provider, we would expect the Ticketmaster CEO pay to be on the higher end.
Ticketmaster Company Background
Ticketmaster is a subsidiary of Live Nation Entertainment, which was formed in 2010 after Ticketmaster merged with Live Nation. Live Nation reported $6.3 billion in revenue in 2021. It sells 500 million tickets per year and works with 30,000 clients worldwide.
Some key facts about Live Nation and Ticketmaster:
– Founded: Ticketmaster was founded in 1976, while Live Nation was founded in 1996. The two merged in 2010.
– Headquarters: Beverly Hills, California
– Revenue: $6.3 billion in 2021
– Employees: 8,400 full-time employees
– Clients: Provides services for 30,000+ clients
– Events: Connects 500 million fans to 5,000 events per year
As the world’s largest live entertainment company and primary ticketing provider, Live Nation holds tremendous power in the industry. It has no close competitors when it comes to scale and reach. In 2019, the U.S. Department of Justice launched an investigation into possible antitrust practices by Live Nation related to its 2010 merger with Ticketmaster. While the investigation is still ongoing, it highlights Live Nation’s dominant position in live entertainment.
Ticketmaster CEO
The current CEO of Ticketmaster is Michael Rapino. He previously served as CEO of Live Nation before the merger.
Some key facts about Michael Rapino:
– Education: Attended University of Tucson
– Career: Became CEO of Live Nation in 2005. Helped broker the Live Nation-Ticketmaster merger in 2010.
– Appointed Ticketmaster CEO: 2017
– Other positions: President of Live Nation Global Touring from 2004 to 2008 and President of Live Nation from 2005 to 2008
– Board memberships: Serves on the Board of Directors of Activision Blizzard and PGA Worldwide Golf Properties
Rapino has led Ticketmaster for the past five years. During this time, Ticketmaster has grown its reach, especially internationally, and expanded further into digital ticketing. It has also faced increased criticism over service fees. Under Rapino, Ticketmaster profits have continued to climb.
Ticketmaster CEO Compensation
As a subsidiary of Live Nation, Ticketmaster does not directly report Michael Rapino’s salary or compensation. However, we can estimate his earnings based on what Live Nation pays its executives.
In 2020, Michael Rapino earned total compensation of $20.3 million as President and CEO of Live Nation, a 22% decrease from his 2019 pay of $24.8 million. This includes:
– Salary: $2 million
– Bonus: $5.2 million
– Stock awards: $13 million
– Option awards: $0
– Non-equity incentives: $104,423
– Other compensation: $21,548
Rapino’s base salary accounted for only 10% of his total compensation. The majority came from stock awards.
As CEO of Ticketmaster, Rapino likely earns a similar salary and compensation package. His total pay is on par with average CEO compensation at major entertainment and ticketing companies. For example, StubHub CEO Jeff Fluhr earned $10.1 million in 2020.
How Ticketmaster CEO Pay Compares
At around $20 million per year, Michael Rapino is very highly compensated. Here is how his pay compares:
– Compared to average workers: Rapino earned 1,617 times the pay of the average Live Nation worker in 2020. The average annual income of a Live Nation employee is $12,500.
– Compared to other CEOs: Rapino’s compensation ranked 14th out of the top 100 highest paid CEOs at U.S. public companies for 2020, according to the Wall Street Journal. His pay ranked below CEOs in media and tech.
– Compared to Live Nation revenue: Total compensation of $20 million in 2020 equaled about 0.3% of Live Nation’s annual revenue.
While Rapino’s compensation is in line with CEOs at comparable corporations, it is still disproportionately higher than the typical Live Nation employee. Critics argue that CEO pay exceeds reasonable levels and point to the widening gap between executives and average workers.
Breakdown of Ticketmaster CEO Pay
Here is a breakdown of the major components of Michael Rapino’s $20.3 million compensation package in 2020:
| Pay Component | Amount |
| Base salary | $2 million |
| Bonus | $5.2 million |
| Stock awards | $13 million |
| Non-equity incentive pay | $104,423 |
| Other compensation | $21,548 |
| Total | $20.3 million |
The majority (64%) of the Ticketmaster CEO’s compensation comes from stock awards or stock options tied to company performance. This gives him a strong incentive to improve Live Nation’s financial results. Non-equity incentive pay is based on meeting pre-determined performance metrics. Bonuses are awarded at the Board of Directors’ discretion. Perks like private air travel and other benefits account for a small share.
How the CEO’s Pay is Determined
The Live Nation Board of Directors sets executive compensation each year. Total pay is heavily weighted towards performance-based compensation like bonuses and stock awards. According to Live Nation’s proxy statement, here are some of the factors considered in executive pay decisions:
– Company financial performance metrics like revenue, operating income, earnings per share
– Individual executive performance reviews
– Achievement of strategic objectives
– Stock price appreciation
– Competitiveness compared to peer companies
– Input from a compensation consulting firm
By tying pay to performance, Live Nation aims to incentivize executives to drive profits higher. However, critics argue performance metrics like earnings don’t necessarily reflect service quality or fair labor practices.
Conclusion
As CEO of Ticketmaster in 2020, Michael Rapino likely earned over $20 million in total compensation. The majority of this pay consisted of stock awards, aligning his incentives with the financial performance of Live Nation Entertainment. While his compensation is in line with CEOs at similar corporations, it vastly exceeds the average Ticketmaster employee’s $12,500 salary. The significant gap between executive pay and typical worker pay continues to fuel debate about fair wage distribution at major corporations.