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The Hollywood Foreign Press Association has steadily increased the fees paid to members for various tasks related to the Golden Globe Awards, according to a Los Angeles Times report that may raise tax issues for the nonprofit journalistic organization and its members.
The tight-knit little HFPA has long come under scrutiny for many of its practices, especially as its signature Golden Globes Awards have grown in influence, audience, and licensing fees from NBC. Much of this emphasis has been on the victory and meals of HFPA members, and the high cost of film and television travel, giveaways and other perks that influence the nomination and appointment process. Globes vote.
But in a new story published by The Los Angeles Times on Sunday, the organization’s growing practice of paying high fees to many of its 87 members for various tasks, including serving on committees and moderating panels, has raised concerns. eyebrows both in and out of the HFPA. .
According to the newspaper, the HFPA budgeted $ 2.15 million in its current fiscal year (which ends in June 2021) to pay members for a variety of reasons. The newspaper noted that two dozen members received $ 3,465 to watch foreign films in January, while members of a travel committee are paid $ 2,310 per month, while members of the archives committee each earn $ 2,200. per month and film festival committee members are paid $ 1,100 per month. A history committee pays members $ 1,000 per month.
Press conference moderators earn $ 1,200 per month, while articles for the HFPA website also earn members extra money (a total of $ 585,000 for the fiscal year ending June 2020) .
The HFPA also generously remunerates its board of directors, writes The Times, noting that five officers were paid between $ 63,433 and $ 135,957 in the tax year ending June 30, 2019. The directors of the board were paid between $ 22,915 and $ 78,079 in the same time frame.
Tax experts cited by the newspaper called the payments unusual, especially for a tax-exempt organization. Insiders told The Times that the amount of money paid to members began to increase dramatically a decade ago, when the journalism market began its rapid economic downturn.
Sources say Variety that under the late president of the HFPA, Lorenzo Soria, who passed away last August, the organization had conducted external audits on its compensation practices. The organization is believed to have made small adjustments to ensure compliance with tax laws governing nonprofits. Soria was in his third term as president of the HFPA, which began in 2019, at the time of his death.
The HFPA also benefited greatly from the audience success of The Globes, which became one of the most-watched non-sports shows of the year, and now earns $ 27.4 million from the NBC organization, a gain over $ 3.6 million. from 2017. Internal documents show the HFPA had $ 50 million in cash at the end of October, according to the Times. The license fees have also enabled the HFPA to increase the amount of its charitable contributions, with more than $ 5 million in grants to a range of organizations in 2020.
The HFPA has long been criticized that its nominations are influenced by the largesse presented by the studios’ awards campaigns. The Times noted that HFPA members were treated to a trip to Paris by Paramount TV for a fixed visit for the Netflix comedy “Emily in Paris,” which surprised some award prognosticators by winning a Globe name for best. comic series. (But HFPA members were not airlifted to the junket, which was similar in nature to other events for suitors. And people familiar with the junket dispute that it was a standout event, describing it as a low budget trip with mediocre As Variety noted, “Emily in Paris” was a nomination that fits with the group’s past choices.)
Variety contacted the HFPA for comment. A source close to the organization suggested that members are only paid when they provide services to the HFPA that are outside of their capacity as members, acting instead as employees. The source said HFPA’s compensation decisions “are based on an assessment of compensation practices by similar nonprofits and market rates for those services,” and approved by a professional nonprofit compensation consultant. lucrative and an outside lawyer.
The source also noted that the HFPA does not have highly paid non-member executives and reports the compensation paid to key employees and officers through the IRS, and describes this compensation as “relatively modest.”
“We recognize the unprecedented economic challenges facing our employees as a result of the effects of the pandemic,” a representative from HFPA told the LA Times. “The HFPA is committed to maintaining the continuity of our skilled and experienced workforce to ensure our future success, and will continue to compensate them for the range of services they provide to the organization.
A related story from the LA Times shed light on the lack of black membership in the HFPA. The Times reported that the 87-member group has restricted its membership for many years in part due to competition concerns. The HFPA has several colored members, but no black members. A spokesperson for the HFPA said the organization was “determined to address” the lack of black representation.
Cynthia Littleton contributed to this report.
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