|Title:||CEO compensation in copyright-intensive industries|
|Citation:||Band, J. (2013). CEO compensation in copyright-intensive industries. Bandwidth. Available at SSRN 2333854.|
|Link(s):||Definitive , Open Access|
|Key Related Studies:|
|About the Data|
|Data Description:||A total of 30 firms: five leading firms in three copyright-intensive industries -- motion pictures, publishing, and software -- and five leading firms in three other industries: construction, transportation, and mining.|
|Data Type:||Secondary data|
|Secondary Data Sources:|
|Data Collection Methods:|
|Data Analysis Methods:|
|Cross Country Study?:||No|
|Government or policy study?:||No|
|Time Period(s) of Collection:||
In June 2013, the author produced a study on the profitability of copyright-intensive industries by comparing the compensation of the chief executive officers of these same 30 firms over the past six years. The study compared the performance over the past ten years of five leading firms in three copyright-intensive industries: motion pictures, publishing, and software, with the performance of five leading firms in three other industries: construction, transportation, and mining. It found that the firms in the copyright-intensive industries were more profitable than the firms in the other industries in every period examined.
Main Results of the Study
- Each year, the CEOs of the firms in the copyright intensive industries received significantly higher compensation than the CEOs of the firms in the other industries. For example, in 2012, copyright-intensive industry CEOs received $22.9 million in compensation on average, while the CEOs in the other industries received $7.4 million on average.
- In other words, the 2012 compensation of copyright-intensive industry CEOs was more than triple the compensation of CEOs in the other industries. During the entire six-year period, copyright intensive industry CEO compensation on average was 2.8 times higher than CEO compensation in the other industries.
- Moreover, between 2007 and 2012, CEO compensation in the copyright intensive firms grew by 45%, while it increased by only 8% in the other industries. These upwardly trending compensation levels demonstrate that the copyright-intensive industry CEOs are not sharing the pain that infringement allegedly causes their employees.
Policy Implications as Stated By Author
During a period when the copyright-intensive industries purportedly are losing jobs because of attacks by pirates, CEO compensation has increased dramatically, both in absolute terms and relative to CEO compensation in other industries. These generous compensation packages must be reflected upon as they belie the suggestion that the copyright industries confront an existential threat from infringement.
Coverage of Study
|Level of aggregation:||Firm|
|Period of material under study:||2007-2012|