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Shaking the Money Tree

By David Hatch -- Broadcasting & Cable, 2/15/2004 7:00:00 PM

Billy Tauzin might consider it chump change, but Jack Valenti's $1.3 million salary makes him the king of media lobbyists. At least paywise. The Louisiana congressman turned down Valenti's post, seduced by the pharmaceutical industry's offer for nearly double the MPAA comp. The rest of Valenti's peers—and most of America—would happily settle for his exalted salary.

Do the math: With earnings well beyond the $1 million mark, Motion Picture Association of America President Jack Valenti and National Cable & Telecommunications Association President Robert Sachs are the most highly paid of 108 media lobbyists.

According to BROADCASTING & CABLE'S second-annual compensation survey of non-profit media organizations, Valenti tops the charts with a compensation of $1,370,211 in 2002, a healthy jump over the $1,218,727 he earned in 2001. Valenti, who says he is ready to call it quits at the MPAA, the group he has headed since 1966, leaves big shoes and a big wallet to fill.

Sachs had the second-highest remuneration in 2002, with earnings of $1,263,082, up substantially from $1,184,310 the year before. Valenti and Sachs held the same rankings in B&C's inaugural survey last year.

Also for the second year in a row, National Association of Broadcasters President Eddie Fritts commanded the third-highest pay package: $905,008 for the year ended March 31, 2002. His previous take was $839,992. Although Fritts is paid less than his cable and motion picture peers, as an organization, the NAB outguns its industry counterparts in revenue. In the year ended March 31, 2002, NAB's income topped $56 million.

Of course, not all lobbyists command seven digits in their paychecks. Longtime media activist Andrew Schwartzman, head of the non-profit Media Access Project law firm, made $122,800 in 2002, and David Honig, executive director of the watchdog Minority Media and Telecommunications Council, has had the same income—$140,000—for three years. When it comes to state broadcast associations, Vermont Executive Director Alan Noyes pulls in a paltry $6,500.

Salaries, in part, may reflect the improving economy. MPAA's revenue rose sharply from 2001 to 2002, increasing more than $4 million to $45,792,601. From 2000 to 2001, the association's revenue had plummeted by just over $4 million.

NCTA's revenue in 2002 was $31,025,510, down slightly from $31,477,799 in 2001. But the association had a steeper decline from 2000 to 2001, when revenue slid by more than $4 million. (This figure reflects an 11-month period, from February 2001 to December 2001, because of an accounting change at NCTA.)

B&C's survey measures non-profit, tax-exempt media lobbies, professional organizations, watchdogs and networks based on information obtained from Form 990 tax returns. The figures reflect the most recently available data and are mostly for fiscal years ending in 2001 and 2002.

According to documents, NAB revenue was off a whopping $5.6 million from its income of $61,635,513 for the year ended March 31, 2001.

Seven other trade-group executives made between $400,000 and $1 million, down from nine in last year's survey. A few executives draw paychecks from more than one non-profit, such as John Lawson, who made almost $154,000 as president of the Association of Public Television Stations and reaped an additional $125,886 as head of APTS Action, a related lobbying group.

The top breadwinner at a statewide non-profit was Spencer R. Kaitz, president of the California Cable and Telecommunications Association, with compensation totaling $383,400 for the year ended June 30, 2002.

The Radio Advertising Bureau learned from B&C last year that it had failed to file completed tax records for the years 1999-2001. Now the organization says it is caught up with the IRS. The RAB blamed the error on an outside accounting firm.

State Broadcast Associations
ASSOCIATION YEAR ENDED REVENUE TOP EXECUTIVE COMPENSATION
Florida 6/30/02 $1,574,131 C. Patrick Roberts, pres. $365,907
Texas 12/31/02 $1,686,521 Ann Arnold, exec. dir. $225,499
Northern California 12/31/02 $822,899 Tom Martz, pres. $196,400
Michigan 12/31/02 $1,916,379 Karole L. White, pres./CEO $137,419
Pennsylvania 12/31/01 $1,137,003 Richard Wyckoff, pres. $120,622
Arizona 12/31/02 $319,879 Art Brooks, pres./CEO $119,919
Wisconsin 12/31/02 $528,693 John Laabs, pres. $109,405
Alabama 12/31/02 $697,864 Jerdan Bullard, exec. dir. $106,000
Oklahoma 12/31/02 $373,614 Carl C. Smith, pres./CEO $93,692
New Jersey 12/31/02 $888,372 Philip H. Roberts, exec. dir. $93,183
Washington 12/31/01 $257,349 Mark Allen, pres./CEO $89,000
Arkansas 12/31/01 $466,309 Patricia Willcox, exec. dir.21 $82,899
West Virginia 12/31/02 $404,199 Michele Crist, exec. dir. $76,994
Minnesota 12/31/02 $657,402 James P. du Bois, pres./CEO $76,000
Colorado 6/30/02 $274,135 Jan Hammer, exec. dir.22 $70,477
Louisiana 12/31/02 $322,779 Louise Lowman Munson, exec. dir. $69,785
Maine 6/30/02 $257,840 Suzanne Goucher, pres./CEO $64,066
South Carolina 12/31/02 $241,931 Shani White, exec. dir. $60,000
Virginia 9/30/02 $39,022 Peter Easter, exec. dir.23 $60,000
New Mexico 12/31/02 $541,316 Paula Maes, pres./CEO $57,806
Mississippi 12/31/02 $223,290 Jacklyn Lett, pres. $55,000
Wyoming 12/31/02 $182,825 Laura J. Grott, exec. dir. $50,000 24
Montana 12/31/02 $379,521 Greg MacDonald, pres./CEO $37,993
North Dakota 12/31/02 $107,090 Beth Helfrich, exec. dir. $27,360
MD; Wash., D.C.; DE 9/30/02 $255,389 Chip Weinman, pres. $20,800
Vermont 6/30/02 $136,104 Alan Noyes, exec. dir. $6,500
Illinois 12/31/02 $3,547 Emily Barr, pres.25 $0
Indiana 12/31/02 $324,780 Linda C. Compton, pres./CEO $0
Massachusetts 12/31/02 $463,783 B. Allan Sprague, pres. $0
Nevada 12/31/02 $604,156 Robert D. Fisher, exec. dir.26 $0
New Hampshire 12/31/02 $362,567 B. Allan Sprague, pres. $0
North Carolina 12/31/02 $402,691 Rick Jackson, pres.27 $0
South Dakota 12/31/02 $159,427 Steve Willard, exec. dir. $0
Utah 12/31/01 $198,578 Dale Zabriskie, exec. dir. $0
California 12/31/02 $154,000 Stan Statham, pres./CEO NA28
State Cable Associations
ASSOCIATION YEAR ENDED REVENUE TOP EXECUTIVE COMPENSATION
California 6/30/02 $8,350,272 Spencer R. Kaitz, pres./gen. counsel $383,400
Florida 12/31/01 $3,199,146 Steven E. Wilkerson, pres. $295,544
MD; Wash., D.C.; DE 12/31/02 $586,155 Wayne O'Dell, pres. $157,316
Louisiana 12/31/02 $383,412 Cheryl P. McCormick, exec. dir. $129,100
Ohio 12/31/01 $1,435,485 Ed Kozelek, exec. dir. $110,000
Iowa 12/31/02 $136,853 Thomas P. Graves, exec. VP. $108,901
Missouri 12/31/02 $183,394 Greg Harrison, pres. $106,631
Washington 12/31/02 $162,547 Ronald N. Main, exec. dir. $84,000
Arkansas 12/31/02 $176,787 Greg Yielding, pres. $77,145
Wisconsin 10/31/02 $496,521 Thomas S. Hanson, exec. dir. $76,281
Idaho 12/31/02 $101,384 Ronald L. Williams, exec. dir. $67,500
Mississippi 12/31/02 $311,156 LeeAnn Hayes, exec. dir. $64,858
Indiana 12/31/02 $440,973 Brad Tracy, exec. dir.29 $61,250
Nevada 12/31/02 $174,532 Bob Gastonguay, exec. dir. $57,422
Colorado 12/31/02 $56,111 Patrick Boyle, exec. dir. $0
Georgia 5/31/02 $672,480 Nancy N. Horne, pres.30 $0
Kansas 12/31/02 $84,145 Gary Shorman, pres. $0
Mid-America 12/31/02 $108,514 Charlotte McClure, chairman $0
Nebraska 12/31/02 $85,496 Brian Thompson, pres. $0
Pennsylvania 12/31/02 $45,401 Daniel R. Tunnell, pres. $0
South Carolina 12/31/02 $516,208 Nancy N. Horne, exec. dir. $0
New Jersey 12/31/01 $1,160,184 Karen D. Alexander, pres. NA
Oklahoma 12/31/02 $110,746 Jim Walker, exec. dir./gen. counsel NA
Footnotes21Jim McCall is now executive director. | 22Marilyn Hogan is now president/CEO. | 23Compensation is for Easter Associates, a management company. | 24Salary estimate provided by Grott, a contract employee of the association. | 25Dennis Lyle is now president/CEO. | 26Fisher had a salary of $104,704 in 2001. | 27Ardie Gregory is now president. | 28Statham earned $211,696 in 2001. | 29Tracy's compensation is for April-December 2002. | 30Horne is paid by management company CSM Inc. to head the Georgia, South Carolina and Southern Cable Associations, which pay annual fees to CSM.
NA = Not available
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