RIAA’s Pockets Grew Thin As Music Labels Grew Tired
The music trade group which represents America’s recording industry has presented the tax filing to the Internal Revenue Service (or IRS). It covered the fiscal year ending with March 31, 2011.
The massive decline occurred in the past two years as RIAA’s revenues were cut in half, more or less. According to the filing, the total revenue was of $29.1 million, down from $51.35 million two years ago. The abrupt downfall was caused by the ever-diminishing membership dues paid by music labels – from $49.76 million to $27.88 million in the same period. The effects are also highlighted by RIAA’s cuts in personnel. As such, the RIAA is now having 72 people (from 117 just two years ago) on their payroll, totalling $12.7 million in pay checks, 25% of which went to executives’ pockets.
Who cashed in the most? Well, according to the tax filing, Mitch Bainwol (CEO) went home with $1.75 million each year, while Cary Sherman (current CEO and former president of the RIAA) took just $1.37 million. No wonder they cry about piracy, right?
Following the two are Neil Turkewitz (EVP International), Steve Marks (General Counsel) and Mitch Glazier (Public Policy & Industry Relations) with $696.036, $675.528 and $599.661 respectively.
The filing continues to show that the RIAA spent $2.3 million on lobbying, a figure that seems to remain balanced over the years. As for their legal fees, they’ve also dropped – from $16.50 million to $2.34 million in the past two years.
A full report can be seen here.