Live Nation last week approved a contract doubling its CEO compensation target to over $60 million per year, despite a federal jury in Manhattan ruling the company and its Ticketmaster subsidiary liable for unlawful monopoly practices
That contrast is notable given that just six months ago, CEO Michael Rapino testified under oath that his pay was linked in part to “solving the DOJ (Department of Justice) problem,” i.e. preventing an anti-trust breakup or adverse outcome from DOJ anti-monopoly enforcement
Despite a jury ruling Live Nation engaged in monopoly practices, his compensation target has doubled anyway
His previous contract was set to expire in 2027. As of Wednesday, his tenure may now continue through 2031
In April, a federal jury found that Ticketmaster used monopolistic practices to overcharge fans $1.72 per ticket in 21 states and Washington, DC
The DOJ settled its anti-trust enforcement action, reaching a deal in which Live Nation would fund $280 million for certain states’ claims. The settlement is a proposed final judgment, and a judge will rule on its approval by next year
Rapino collected $32.6 million in compensation in 2025, 291 times what its median salaried employee earned
His new $60 million annual compensation target takes effect in 2027
Half of Rapino’s new annual equity grants — $15 million in stock each year starting in 2027 — vests at 20% a year simply for remaining employed. The board also granted him $20 million in upfront stock
Rapino abstained from voting on his own compensation this September
Over the last 12 months, Live Nation common stock has rallied 8% — about half as well as the S&P 500 index’s 15% gain — and over the last five years, it’s trailed the S&P 500 by about 7%
Despite Bloomberg defining Rapino’s “solving the DOJ problem” as resolving government antitrust enforcement, he’s claimed that his board of directors cared more generally about “management of, not exactly the result” of the case, and that it’s “not whether we win or lose.”
