Vlad's salary for 2013 was $3.8 million

[Sttew]

Again, which club would you be supporting if AD hadn't been CEO?

A classic case of cutting the tall poppy.

As you say, very surprising that a GC supporter is bagging AD. GC most definitely would not exist were it not for AD

 

[asanque]

"Base salary" being the key term here. In 2009 the BHP CEO's wage was $US10.5 million, in 2011 was $US11.63 million and in 2012 it was $US9.82 million.

When Vlad earns $8 billion profit for the AFL, he might deserve a bigger bonus.

His bonus of $2.4 million came on the back of meeting past kpis and is over 10% of the afl's net profit.

Find me a comparable organization that pays in that absurd way.

Let alone in the most scandal ridden year in afl history brought about by lack of governance and damage to afl integrity.

 

[LordLucifer]

Found this bit interesting, you get the impression that he was going to bail out earlier but the lure of the $2mill bonus kept him in the job for the extra three years.

AFL boss Andrew Demetriou had to remain in his position as chief executive for the years of 2010, 2011 and 2012 in order to receive his contentious $2 million performance bonus last year.

And Demetriou has a clause in his employment agreement that will bar him from working for a competing code for a period of time when he leaves the AFL at season's end.

While Demetriou received pay and bonuses totalling $3.8 million during 2013 - comprising $1.8million in annual salary salary, plus a ''long service'' bonus of $2million - he said that the $2 million bonus was actually earned over the course of three seasons - 2010, 2011 and 2012 - when he had reached certain benchmarks, including broadcast rights earnings.

Read more: http://www.theage.com.au/afl/afl-news/andrew-demetriou-got-threeyear-incentive-bonus-20140305-347la.html#ixzz2v8EECl7E

 

[asanque]

Found this bit interesting, you get the impression that he was going to bail out earlier but the lure of the $2mill bonus kept him in the job for the extra three years.





Read more: http://www.theage.com.au/afl/afl-news/andrew-demetriou-got-threeyear-incentive-bonus-20140305-347la.html#ixzz2v8EECl7E

Sounds like an extra bonus on top of his already standard bonus for meeting the same kpis yearly.

Plus a long term incentive bonus because apparently over $2 million a year wasn't enough incentive to stay

Fitzpatrick or santa Claus?

 

[jim boy]

When Vlad earns $8 billion profit for the AFL, he might deserve a bigger bonus.

His bonus of $2.4 million came on the back of meeting past kpis and is over 10% of the afl's net profit.

Making the biggest profit possible isn't the focus of the AFL, as along as it makes any profit, then it's the size of the revenue that matters. The AFL distributes incomes to clubs, to grass root projects, to other causes - all of which take away from profit. That's why we have GWS and Gold Coast, not to make the comnpetition more interesting, but to grow revenue.

Yeah, it's a big amount of money, but considering the $2mill was an accumulation of bonuses over three years, not that much. You are not going to get a corporate gorilla with enticements of peanuts. Jeff Browne, who I suspect will be the next AFL CEO, wont come cheap if he is to lose his CEO'ship of channel nine.

 

[master bate]

Making the biggest profit possible isn't the focus of the AFL, as along as it makes any profit, then it's the size of the revenue that matters. The AFL distributes incomes to clubs, to grass root projects, to other causes - all of which take away from profit. That's why we have GWS and Gold Coast, not to make the comnpetition more interesting, but to grow revenue.

Yeah, it's a big amount of money, but considering the $2mill was an accumulation of bonuses over three years, not that much. You are not going to get a corporate gorilla with enticements of peanuts. Jeff Browne, who I suspect will be the next AFL CEO, wont come cheap if he is to lose his CEO'ship of channel nine.

Why do we need a corporate gorilla. Demetriou himself was a school teacher who started the AFLPA and then managed footy ops. Hardly a corporate titan when he started. But by cleverly factoring in bonuses in his contract he's ended up a multimillionaire whilst getting to run the AFL.

Why would we want Jeff Browne? I'd hardly describe channel 9 as a successful business of late.

We are so quick to get caught up in the big numbers and then use them to justify massive wages for what really is a pretty simple business model. Stage games of footy, sell the TV rights, charge entry to the games and distribute up the revenue.

They'll probably offer the new CEO another crazy pay packet but I hope they learn to cut out these crazy bonuses. It's the CEO's job to do what is best for the game and if that means increasing revenues then that's fine, don't give him a bonus. It's not unreasonable to think at times decreasing revenue may be needed.

 

[kranky al]

To get the best corporate minds we have to pay corporate dollars. I hope there's a no compete clause in his departure. NRL would be stupid not to chase him or at least inquire.

Nrl wont sign him out of stupid pride

So yes stupid



Would be alright it he hadnt played afl and was purely a businessman - but there is no way they would have an afl ex player come in there and "show them how its done"

To much testosterone - maybe if they were teetering on insolvency

 

[Aussie in exile]

Found this bit interesting, you get the impression that he was going to bail out earlier but the lure of the $2mill bonus kept him in the job for the extra three years.





Read more: http://www.theage.com.au/afl/afl-news/andrew-demetriou-got-threeyear-incentive-bonus-20140305-347la.html#ixzz2v8EECl7E

In my opinion it was always money first and football second for Fat Andy.

 

[The_Wookie]

Making the biggest profit possible isn't the focus of the AFL, as along as it makes any profit, then it's the size of the revenue that matters. The AFL distributes incomes to clubs, to grass root projects, to other causes - all of which take away from profit. That's why we have GWS and Gold Coast, not to make the comnpetition more interesting, but to grow revenue.

Precisely this. In a very real sense, the AFL has generated a consistent increase in total funding - where the league made 446 million, the AFL made more than half a billion this year. Profits are great, and you can make plenty IF YOU DONT SPEND IT. You can compare it to the NRL who generated a 45 million dollar profit (as opposed to the AFL reporting a 16.67 million profit. The NRL spent less on every sector of their expenditure - including 80 million less on its clubs, and 20 million less on state competitions and development.

Yeah, it's a big amount of money, but considering the $2mill was an accumulation of bonuses over three years, not that much. You are not going to get a corporate gorilla with enticements of peanuts. Jeff Browne, who I suspect will be the next AFL CEO, wont come cheap if he is to lose his CEO'ship of channel nine.

It was reported that part of the reason his pay structure was adjusted a couple of years ago was because he was being headhunted for another job. I rate Browne an outside chance, still think Mclachlan is the front runner - its got to be the reason he didnt take the NRL job.

 

[finders]

AD deserves all he gets dont forget he had built from ground up his own multi million dollar dental supplies business before he joined the AFL
He was already well heeled so someome like that dosent take a pay cut

 

[theflea]

This theory that our AFL CEO should be paid a lot less, will simply degrade the job profile and you get what you pay for. Look at businesses that turnover 500m and compare those CEO's.

 

[manboob]

NRL.

 

[Ron The Bear]

Sounds like an extra bonus on top of his already standard bonus for meeting the same kpis yearly.

Plus a long term incentive bonus because apparently over $2 million a year wasn't enough incentive to stay

Fitzpatrick or santa Claus?

It's like compound interest in reverse.

 

[Chief]

Making the biggest profit possible isn't the focus of the AFL, as along as it makes any profit, then it's the size of the revenue that matters. The AFL distributes incomes to clubs, to grass root projects, to other causes - all of which take away from profit. That's why we have GWS and Gold Coast, not to make the comnpetition more interesting, but to grow revenue.

Yeah, it's a big amount of money, but considering the $2mill was an accumulation of bonuses over three years, not that much. You are not going to get a corporate gorilla with enticements of peanuts. Jeff Browne, who I suspect will be the next AFL CEO, wont come cheap if he is to lose his CEO'ship of channel nine.

BP boss: $8.7 mil, Market cap of $153 bil.

If this $2 mil was over 3 years, that's still about $666k per year ~ $2.5 mil per year.

Ridiculous money and just shows how shallow Australia's management pool is.

 

[BigTacoBandit]

I think the AFL needs to publish what the KPI's are that AD was assessed against. If it was things like attendance or viewer numbers (which are pretty safe assumptions), these are all things that AD manipulated at the cost of competition integrity. The Blockbuster fixture and the expansion teams now just seem like tools to get AD his bonus and no matter how much people didnt like them due to fairness he was never going to change them because it would have meant giving up $2mil.

If it was just for sticking around for three extra years, the AFL commission need to answer they would want someone hanging around if they didnt really want to be there which became apparent last year.

 

[RussellEbertHandball]

Seems about right considering the record $446M profit that was reported.

Would assume most CEOs take home an equivalent or higher percentages of their company's profits than Demetriou does.

That's the AFL total revenue figure not the profit figure. The Net profit after all distributions to clubs, game development, other distributions to players and coaches associations, running the AFL comp ie Andy's salary and bonus, etc was $16.97mil.

 

[RussellEbertHandball]

The NFL commish got $44M last year. David stern (NBA) was north of 20.

3.8 is pocket change

Revenue of the NFL industry from football related activities ( as defined by the CBA) is about $11bil. In the 2011-12 NFL financial year they only reported income of $255mil but that is the way the TV revenues are considered revenue of the clubs not the NFL office. The AFL account for TV monies as their revenue not the clubs. TV monies in the NFL are worth $5bil+ USD/year. See - for NFL office revenue and expenses filing summary
http://www.guidestar.org/organizations/13-1922622/national-football-league.aspx

The AFL industry revenues when you include the AFL revenue + 18 clubs revenue - the distributions from the AFL to the clubs - pokie and gaming revenue which NFL clubs don't have would be around $850mil to $900mil.

Goodell's $44mil payment like Demetriou's had a large component of back service pay. Most people wouldn't know that Goodell has been working for the NFL since 1982 when he started as an intern - his first job out of uni after a college sports career when he was 27. Like Andy D he was 2IC ( to Paul Tagliabue) to the boss before he got the big gig.

http://www.nytimes.com/2014/02/15/s...ssioner-earned-44-2-million-in-2012.html?_r=0

Goodell’s Pay of $44.2 Million in 2012 Puts Him in the Big Leagues
By KEN BELSONFEB. 14, 2014
N.F.L. Commissioner Roger Goodell was paid $44.2 million in 2012, making him among the best-paid executives in the country and perhaps the highest-paid leader of a nonprofit organization.
The amount of Goodell’s compensation increased about 50 percent from 2011, largely because of a bonus and pension payment of
$9.1 million that he deferred two years ago after a labor dispute between the league and its players. The deferral ensured that other league employees were paid in full.

http://www.nytimes.com/2014/02/15/s...ssioner-earned-44-2-million-in-2012.html?_r=0

But can Andy D claim the following or say 1/12th of the following??

http://www.nytimes.com/2014/02/15/s...ssioner-earned-44-2-million-in-2012.html?_r=0

Perhaps most important to the league’s owners, 23 of the 32 franchises are worth more than $1 billion, and every club is profitable, according to Forbes.

http://www.nytimes.com/2014/02/15/s...ssioner-earned-44-2-million-in-2012.html?_r=0

But Goodell like Demetriou is overpaid when compared to the normal corporate sector.

http://www.nytimes.com/2014/02/15/s...ssioner-earned-44-2-million-in-2012.html?_r=0
But even some of the largest nonprofit trade groups paid their executives far less. The chief executive of the American Petroleum Institute, for instance, was paid $5.6 million, according to the latest government filings.

Goodell’s pay was large when stacked against executives’ pay at for-profit businesses, too. According to Equilar, a compensation research company, the median salary for chief executives at companies listed on the Standard & Poor’s 500-stock index was
$9.7 million, less than one-quarter of what Goodell was paid in 2012.

Michael T. Duke, the chief executive of Walmart, the nation’s largest private employer with sales of about $470 billion, was paid $20 million. Lawrence J. Ellison, the chief executive of Oracle, was the highest-paid executive at a public company, having received $96.2 million in 2012.

Goodell’s pay, which was first reported by Sports Business Journal on Friday and will be disclosed in the N.F.L.’s annual filing with the Internal Revenue Service on Tuesday, reflects the league’s continued growth. Lucrative broadcast deals, concessions won from the players in the most recent collective bargaining agreement and an increased presence overseas have helped push the league’s annual revenue higher.
http://www.nytimes.com/2014/02/15/s...ssioner-earned-44-2-million-in-2012.html?_r=0

About half of the AFL's $446mil comes from broadcasting/media rights revenue which has a gross margin of about 95% which no other ASX 200 company would have but the other 50% would be normal gross margins.

If Andy D's base pay is $1.4mil I bet no ASX 200 company with turnover of around $4.5bil would give their CEO a base pay of $14mil. Allowing for the high margin from broadcasting/media rights revenue I bet you would not find a CEO who works for a company who has $9bil revenue get a base pay of $14mil.

Lets look at the bank CEO's who have a reasonable margin services type business.

Company..2013 Revenue 2013 profit CEO pay

CBA...... $20.408bil .......$7.677bil CEO Ian Narev paid $7.8 million (see ANZ story link below)
Westpac $17.792bil........$6.816bil CEO Gail Kelly paid $9.2 million (see ANZ story link below)
NAB...... $18.858bil........$5.452bil CEO Cameron Clyne paid $7.7mil
ANZ...... $17.246bil ..... $6.272 bil CEO Mike Smith paid $10.4mil of which $5.1mil is deferred share options

 

[Damon_3388]

That's the AFL total revenue figure not the profit figure. The Net profit after all distributions to clubs, game development, other distributions to players and coaches associations, running the AFL comp ie Andy's salary and bonus, etc was $16.97mil.

Yeah we established that a while back in the thread.

Again, the salary figure is inflated massively by the bonus, which obviously doesn't get paid every year.

 

[Kwality]

Is anyone going to take a pay cut, thats a cut to get Andys job:
The Herald Sun tossed up a few, including Wesfarmers exec Ian McLeod, formerly at Celtic, currently on the board at the Saints & the Victory
http://www.heraldsun.com.au/sport/a...demetriou-leaves/story-fni5ezdm-1226843766324

PROBLEM:
Mr McLeod was named Coles managing director in 2008, the year after Wesfarmers acquired the chain.

In recent years, Mr McLeod has received a pay and perks package worth more than $10 million every year — outstripping every other Wesfarmers executive.

 

[RussellEbertHandball]

Is anyone going to take a pay cut, thats a cut to get Andys job:
The Herald Sun tossed up a few, including Wesfarmers exec Ian McLeod, formerly at Celtic, currently on the board at the Saints & the Victory
http://www.heraldsun.com.au/sport/a...demetriou-leaves/story-fni5ezdm-1226843766324

PROBLEM:
Mr McLeod was named Coles managing director in 2008, the year after Wesfarmers acquired the chain.

In recent years, Mr McLeod has received a pay and perks package worth more than $10 million every year — outstripping every other Wesfarmers executive.

No one is going to take an 80% pay cut, but John O'Neill took one when he left banking to run the ARU back in 1995. He probably made up for it with a handy bonus clause as RU moved into the professional era post 1995 World Cup and IIRC he got a big bonus as part of running the 2003 World Cup in Oz. He probably also made up for in 2003 or 2004 when Frankie Lowy recruited him to run the FFA.

I suspect David Smith took a decent pay cut when he left Lloyds International ( ie the Asia Pacific arm of Lloyds Banking Group) and was appointed CEO of the NRL at the end of 2012 and started his new job early 2013.

 

[Ron The Bear]

Again, the salary figure is inflated massively by the bonus, which obviously doesn't get paid every year.

Correct me if I'm wrong, he's received some form of bonus in every one of the last several years, at least. If it's not a long service bonus, it's a loyalty bonus or a TV rights bonus or an Adelaide Oval bonus or some other sort of KPI bonus. It'd be bigger news if he didn't get a bonus.