As Hollywood writers and actors continue to fight for fair wages and guarantees regarding the use of artificial intelligence, their cause has received a boost from Duncan Crabtree-Ireland, the National Executive Director and Chief Negotiator of SAG-AFTRA. On Thursday, Crabtree-Ireland joined the AFL-CIO in presenting the union alliance’s annual report on executive pay.
During a virtual news conference focused on Paywatch, this year’s report and website from the AFL-CIO, Crabtree-Ireland highlighted the issue of excessive compensation among media and entertainment executives. He emphasized the hypocrisy of CEOs who claim they can’t afford measures like minimum-wage increases that account for inflation, while their own compensation reflects a different reality.
One such CEO is Disney’s Bob Iger, who recently stated during a television interview that the expectations of writers and actors are unrealistic. This comment did not sit well with SAG-AFTRA President Fran Drescher, who responded firmly.
The AFL-CIO report, based on publicly reported executive compensation for 2022, reveals that CEOs of S&P 500 companies received an average total compensation of $16.7 million last year. However, the CEOs of entertainment companies affiliated with the Alliance of Motion Picture and Television Producers received an even higher average of $35 million, according to Brandon Rees, the AFL-CIO’s Deputy Director of Corporations and Capital Markets.
These staggering compensation figures are in stark contrast to the average hourly pay for actors in the U.S., which stood at $36.06 as of May 2022, according to recent government data.
It is clear that there is a significant disparity between executive compensation and the wages of those working in the entertainment industry. As Hollywood fights for fair treatment and economic equality, it is crucial for companies to address this inconsistency. We cannot turn a blind eye to this issue any longer.
Why CEOs like the ‘Pity City’ CEO are Out of Touch
In April 2022, we explore the question of why bosses, such as the ‘Pity City’ CEO, often seem out of touch with their employees. One possible answer lies in the growing CEO-to-worker pay gap, as indicated by the Paywatch report.
Last year, the report revealed a staggering CEO-to-worker pay ratio of 272-to-1. This figure brings attention to the role of CEO salaries in contributing to economic inequality, especially as CEOs rapidly incorporate artificial intelligence (AI) into their business models. The crucial question arises — will AI be utilized to enhance the living standards of working people and empower them in shaping its application in the workplace?
The concerns surrounding AI extend beyond the realm of CEOs. Notably, individuals in the entertainment industry, such as Hollywood writers and actors, have expressed worries about the impact of AI on their work. The AFL-CIO also emphasizes that this concern transcends industries, affecting professionals from various sectors.
For example, performers in the entertainment industry often face demands to relinquish their rights to their own likeness as a condition of employment. This enables studios to profit by digitally generating new content without involving the performers themselves. Similarly, writers find themselves facing challenges in their craft, and actors experience limitations in their roles. In summary, their struggle becomes a unified struggle for all.
On the other side of the spectrum, the studios and streaming services represented by AMPTP have defended their AI proposal. They claim that it safeguards performers’ digital likenesses, requiring the performers’ consent before creating or using digital replicas or making digital alterations to a performance. Regarding writers, the AMPTP demonstrates its dedication to engaging in discussions about AI matters with the Writers Guild of America.
- Netflix criticized for posting AI jobs paying up to $900,000 while writers and actors are on strike
- Actors, writers, hotel housekeepers and grad-student workers are all striking for the same reason
