Michael Rapino is the CEO and President of Live Nation Entertainment, the world’s largest live entertainment company. As the head of Live Nation, Rapino oversees a global live events and ticketing giant with 2019 revenues of over $11 billion. With his high-profile position and substantial compensation, Rapino’s earnings attract significant interest. Here is an in-depth look at how much Michael Rapino makes.
Rapino’s Salary
As Live Nation’s CEO and President, Rapino earns a substantial base salary. For 2019, Rapino’s base salary was $3 million, up from $2.9 million in 2018. His employment agreement outlines an annual base salary of $3 million through 2022. With this salary, Rapino is one of the highest paid executives in the live entertainment and music industry.
Annual Bonuses
In addition to his salary, Rapino earns an annual performance bonus based on Live Nation’s financial results and Rapino’s individual performance. For 2019, Rapino had a target bonus opportunity of 200% of his base salary, or $6 million. Based on Live Nation’s revenue and adjusted operating income results for 2019, the company reported that Rapino had earned 160% of his target bonus, equal to $9.6 million. Rapino’s annual bonus provides a substantial boost to his total compensation each year.
Long-Term Equity Compensation
The largest component of Rapino’s compensation comes from long-term equity awards. Each year, Rapino receives a significant grant of performance-based restricted stock units. For 2019, Rapino received a grant of 389,299 restricted stock units. These units vest and convert to shares based on Live Nation’s achievement of pre-set revenue, operating income, and stock price goals over a 3-year period. At the stock’s closing price on the grant date, Rapino’s 2019 equity award had a value of $25.5 million.
Perquisites and Other Compensation
As Live Nation’s CEO, Rapino also receives various executive perquisites and benefits. For 2019, Live Nation reported $548,823 worth of “other” compensation for Rapino. This includes a $200,000 401(k) plan contribution, $121,477 for Rapino’s personal use of Live Nation aircraft, $95,482 for Rapino’s car service, and over $100,000 for Rapino’s health insurance costs and life insurance premiums.
Total Compensation
Adding up the components of Rapino’s compensation package, his total earnings for 2019 came to over $38 million. This included his $3 million salary, $9.6 million bonus, $25.5 million in equity, and nearly $550,000 in perquisites and other compensation. The table below summarizes Rapino’s total 2019 compensation:
Compensation Element | Amount |
---|---|
Base Salary | $3 million |
Annual Bonus | $9.6 million |
Long-Term Equity | $25.5 million |
Other Compensation | $548,823 |
Total | $38.6 million |
Thanks to this substantial compensation package, Rapino ranked among the highest paid CEOs in the S&P 500 for 2019. His 2019 earnings represent a pay raise from 2018, when his total compensation was $36.2 million.
Wealth from Live Nation Stock
In addition to his direct compensation, Rapino has accrued significant wealth through his Live Nation stock holdings. He owns over 2 million shares of Live Nation stock, worth over $140 million at current market prices. The value of Rapino’s Live Nation stake has soared in recent years as the company’s share price has climbed higher. Rapino has profited handsomely as Live Nation’s growth has delivered gains to shareholders.
Career History
Michael Rapino first joined Live Nation in 2005 when the company acquired Rapino’s promotion company, SFX Entertainment. Rapino stayed on and became Live Nation’s CEO in 2010. Under Rapino’s leadership, Live Nation has expanded aggressively through acquisitions, forged new partnerships, and reported strong growth in revenue, operating income, and stock price. The company’s success under Rapino has enabled him to negotiate a series of lucrative employment contracts.
Future Compensation
Looking ahead, Rapino appears positioned to continue earning substantial compensation packages at Live Nation. His current employment contract runs through 2022 and outlines future salary, bonus opportunities, and equity awards valued in the tens of millions. Barring any shakeups, Rapino is line to remain among the highest paid executives in the entertainment industry for years to come.
Perspective on Rapino’s Earnings
While Rapino’s $38+ million compensation package is certainly massive, it is important to put it perspective relative to Live Nation’s financial success. As the CEO of a multi-billion dollar global company, Rapino oversees huge operations that demand significant leadership responsibilities. Under his tenure, Live Nation has delivered excellent gains in revenue, profits, and stockholder value. The company credits Rapino as a driving force behind its strategic direction and strong results. Given Live Nation’s size and performance, Rapino’s compensation is justified to retain and motivate his continued leadership, even if the raw earnings figures seem exorbitant.
Rapino’s compensation also reflects broader trends of soaring pay packages for top executives. Among S&P 500 companies, median total CEO compensation rose over $13 million in 2019. Top CEOs at media, entertainment, and communications firms like Live Nation earn median pay over $20 million. Rapino’s earnings put him at the upper end of executive compensation scales, but he is still well within norms for CEOs leading multi-billion dollar public corporations. Overall, while Rapino’s pay is extraordinarily high, it is generally defensible given his responsibilities and Live Nation’s financial success.
Final Thoughts
In total for 2019, Live Nation CEO and President Michael Rapino earned a compensation package worth over $38 million. This included his salary, bonus, equity awards, and various executive perquisites. Rapino has also accrued substantial additional wealth through his Live Nation stock holdings. As the leader of a highly successful multi-billion dollar company, Rapino commands elite compensation that fuels debate, though is arguably justifiable given Live Nation’s size and performance. Going forward, Rapino stands to continue earning tens of millions annually as he guides Live Nation’s strategic direction and oversees its live entertainment dominance.