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Studios Are Furious That SEC Is Curious About Hollywood Pay
The Wall Street Journal ^ | April 10, 2006 | MATTHEW KARNITSCHNIG, MERISSA MARR and KARA SCANNELL

Posted on 04/10/2006 3:31:21 AM PDT by abb

Media companies, worried that some of their most closely guarded Hollywood secrets could be exposed, are rallying to fight a proposed change to corporate-disclosure rules.

The proposed regulation, under consideration by the Securities and Exchange Commission, would require a corporation to publish the salary details of as many as three nonexecutive employees whose total compensation exceeds that of any of its top five officers. Companies currently have to disclose only the pay of the chief executive officer and the next four highest-paid officers.

The new rule, which the SEC is expected to decide on later this year, would apply to all listed companies but would likely have the most impact in industries such as media, financial services, technology and pharmaceuticals, in which star performers can earn more than CEOs.

Nowhere are stars with huge paychecks more plentiful than in entertainment. But despite the industry's reputation for flaunting wealth, detailed information on the compensation of a big-name entertainment figure is rare. In addition to a salary, top earners often receive bonuses, stock and perquisites -- extras that are usually protected by extensive confidentiality clauses in contracts.

The SEC says the proposed change was motivated by a desire to give shareholders more information about how corporate funds are being spent. The agency says it isn't requiring more detailed information about the employees, such as their names, because the workers in question don't have a "policy-making function." The SEC's deadline for public comment on the measure is today.

Viacom Inc., which owns the Paramount film studio, sees things differently; it plans to file a letter with the SEC arguing that the compensation information should be treated as a trade secret. The proposed rule "would likely impose significant additional costs and administrative burdens in order to achieve disclosure..."

(Excerpt) Read more at online.wsj.com ...


TOPICS: News/Current Events
KEYWORDS: hollywood; libertarians; whataretheyhiding
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In today's free section of the WSJ...
1 posted on 04/10/2006 3:31:23 AM PDT by abb
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To: abb

bttt


2 posted on 04/10/2006 3:34:37 AM PDT by dennisw (If you know the enemy and know yourself you need not fear the results of a hundred battles-Sun Tzu)
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To: abb

"All Corporations are EVIL," said Hollywood, "except Hollywood Corporations."


3 posted on 04/10/2006 3:38:03 AM PDT by martin_fierro (< |:)~)
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To: martin_fierro

It's always amusing how the word "fair" morphs into different meanings depending on who wields its use....


4 posted on 04/10/2006 3:47:10 AM PDT by abb (Because News Reporting is too important to be left to the Journalists.)
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To: abb

Frankly this is actually quite a disturbing policy if they intend to release names along with compensation. Not only does it possibly put people at risk, but it puts companies at risk as the market price for their top execs is shown bare to their competition (think wall street).


5 posted on 04/10/2006 3:53:36 AM PDT by max_rpf
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To: max_rpf

Executives of publicly traded companies (CEO, COO, etc) already must disclose their compensation in the annual proxy statement. This news article refers to the stars who aren't executives but are highly compensated. Think Tom Cruise, Brad Pitt, etc...


6 posted on 04/10/2006 4:19:44 AM PDT by abb (Because News Reporting is too important to be left to the Journalists.)
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To: max_rpf
Put people at risk?!!? How?!!? What does my knowing how much money another person makes "put them at risk"?

IMHO, EVERYONES salary should be known. That way, the free market can work to ensure that everyone is paid fairly.

7 posted on 04/10/2006 4:26:12 AM PDT by SW6906 (5 things you can't have too much of: sex, money, firewood, guns and ammunition.)
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To: traviskicks

ping


8 posted on 04/10/2006 4:31:04 AM PDT by freepatriot32 (Holding you head high & voting Libertarian is better then holding your nose and voting republican)
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To: abb

Wonder if there have been some accounting shenanigans going on?


9 posted on 04/10/2006 4:32:40 AM PDT by mewzilla (Property must be secured or liberty cannot exist. John Adams)
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To: mewzilla

Ya think? LOL!!!


10 posted on 04/10/2006 4:33:41 AM PDT by abb (Because News Reporting is too important to be left to the Journalists.)
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To: abb

Well, daylight's the best disinfectant :)


11 posted on 04/10/2006 4:34:41 AM PDT by mewzilla (Property must be secured or liberty cannot exist. John Adams)
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To: abb

Didn't slick willie exempt hollyweird from taxation on excess compensation?


12 posted on 04/10/2006 4:36:22 AM PDT by OldFriend (AMERICA WOULD NOT BE THE LAND OF THE FREE IF IT WERE NOT ALSO THE HOME OF THE BRAVE)
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To: abb
So, Hollywood accounting comes under scrutiny.

Wikipedia: Hollywood accounting

13 posted on 04/10/2006 4:44:07 AM PDT by Spirochete
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To: SW6906

IMHO, EVERYONES salary should be known. That way, the free market can work to ensure that everyone is paid fairly.


Well, how about starting with you? You can post it right here.


14 posted on 04/10/2006 5:47:07 AM PDT by PeterPrinciple (Seeking the truth here folks.)
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To: SW6906

What you propose would insure that everyone could be paid less.


15 posted on 04/10/2006 5:54:56 AM PDT by em2vn
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To: PeterPrinciple

I think the big deal is -"compensation to a few individuals,
will change the profit/loss of the corporation"-
used to be the -CEO,CFO,Chairman,VP's etc.now you are looking
at specific individuals - because Hollyweird has been showing
such mega blockbusters-( Forrest Gump) showing a loss!
see the following ::http://www.sec.gov/spotlight/sarbanes-oxley.ht

Sarbanes Oxley is going to get them for non compliance of
standard accounting procedures.


16 posted on 04/10/2006 6:01:53 AM PDT by mj1234
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To: mewzilla
Wonder if there have been some accounting shenanigans going on?

I was thinking tax dodging... not that I'm a fan of the IRS, but if I have to pay, they should have to. Then maybe we'll all rise up together, hand in hand, like a communist Hollywood movie.

17 posted on 04/10/2006 6:22:55 AM PDT by IncPen (Torture should be safe, legal, and rare.)
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To: IncPen
I was wondering about the tax dodging, too.

But Hollyweird leftists wouldn't stiff Big Government of all the taxes it needs to fund the nanny state...would they?

18 posted on 04/10/2006 6:25:32 AM PDT by mewzilla (Property must be secured or liberty cannot exist. John Adams)
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To: freepatriot32; albertp; Allosaurs_r_us; Abram; Americanwolfsbrother; AlexandriaDuke; ...
Wonder if this will turn Hollywood against Big Government? Doubt it. :)





Libertarian ping! To be added or removed from my ping list freepmail me or post a message here.
19 posted on 04/10/2006 6:26:49 AM PDT by traviskicks (http://www.neoperspectives.com/israel_palestine_conflict.htm)
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To: abb

"It's always amusing how the word "fair" morphs into different meanings depending on who wields its use"

It all depends on whose "ox" is getting gored.


20 posted on 04/10/2006 6:35:53 AM PDT by Supernatural (Shoot first, ask questions later.)
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