In the face of intense scrutiny over ticketing practices, Live Nation shareholders have voted “no” to the proposed $139 million salary package for CEO Michael Rapino.
Digital Music News first reported the details of the compensation package in May. The Skinny: Rapino signed a new deal with Live Nation to remain as CEO through 2027 – which came with a $6 million signing bonus. His base salary is $3 million, up from $2.1 million in 2021. For 2022, he received a $12 million performance bonus and $116 million in stock awards for approximately $139 million in total compensation for 2022.
But a majority of Live Nation shareholders voted against this compensation package for Rapino and other C-suite executives at the company. Nearly 54% of shareholders No, and in a new proposal, a majority of shareholders voted to review executive salaries every year going forward.
Executive compensation packages were generally passed through Live Nation’s shareholder votes without much trouble – so this allegation is notable. Ticketmaster’s collapse with Taylor Swift and the hearings before Congress likely did shareholders of the current leadership a disservice.
Shareholder advisory groups Institutional Shareholder Services and Glass Lewis both advised Live Nation shareholders to vote against accepting those pay packages. The main concerns were that the compensation packages were not fully disclosed and Rapino’s actual compensation was higher. The $139 million package exceeded top executive compensation at other large companies and was not aligned with long-term performance.
Had the compensation package been approved by shareholders, it would make Michael Rapino one of the highest-paid CEOs of 2022. Let’s take a look.
Who Are the Highest Paid Executives in 2022?
- Sundar Pichai | Google ($225 million)
- Barry McCarthy | Peloton Interactive ($168 million)
- George Kurtz | CrowdStrike Holdings ($147 million)
- safra catz | Oracle Corporation ($147.6 million)
- Douglas Ingram | Sarepta Therapeutics ($124.9 million)
- Michael Rapino | Live Nation Entertainment ($139 million)
- Tim cook | Apple ($99 million)
Although shareholders voted against the compensation package, it was a non-binding vote. That means it’s purely advisory, and Live Nation’s board of directors has the final say on whether Rapino gets the proposed $139 million package.