People Love Celebrities Abdullah Khalid Sweileh American University of Sharjah John F. Kennedy once said, “There is always inequality in life. Some men are killed in a war and some men are wounded and some men never leave the country. Life is unfair. “I remember when I was out with my friends to the movies, and the subject of celebrities salaries popped up. We were arguing about celebrities wages and whether they are overpaid. All of my friends agreed that stars are overpaid except me. I interrupted their talk passionately saying, “They are not overpaid! People from all over the world pay money to see them.
We are going to pay to see them now. Celebrities salaries are not high relative to the revenues they generate. We, people who watch movies, provide them with that money. Therefore, we have no right whatsoever to blame these stars for taking what we gave them. ” My friends were shocked but agreed on what I said. Some argue that celebrities should not be paid that much, but why? Is it because other people like doctors and firefighters deserve that money more? Or is it, maybe, because there are a lot of poor people around the world who needs that money more. Are these reasons valid? aven not these celebrities earned that money? Why they are attacked like they stole that money. It is true that this money can be used to fight poverty. However, this money is earned by them, they deserve it, and they have the right to spend it on whatever they want. In the same time, can a person justify their high wages by saying they worked hard for it? Not really. Celebrities do not work as hard as professional doctors, firefighters, or soldiers. However, it can be justified because people love them, so they give them their money, and celebrities will not say no to that money, who will?
Celebrities are not paid too much because they create way more revenue than their salaries, the failure rate in their career is one of the highestrates among all careers, and the majority of people admires them. Celebrities get paid a fair cut from the revenues they generate. As an employee I have the right to get a share from the returns I made to the organization I work for. For example, CEO’s compensation increases as the accounting numbers, earnings and return on share, increase (Jackson, Lopez, ;amp; Reitenga, 2008).
These were the results of a study conducted by researchers from both the University of South Carolina and the University of Alabama. In the summary of the research, the “findings suggest that accounting fundamentals are significantly associated with bonus compensation” (Jackson, Lopez, ;amp; Reitenga, 2008). The employee salary is determined by his/her productivity, what value and revenues he/she contributes for the firm. According to a research conducted by professors in both North Carolina State University and Vanderbilt University, a data sample containing 246 movies showed the huge amount of revenues generated by only one movie.
The movie that generated the maximum revenues, 473,118 thousand dollars, was Finding Nemo, and She Hate me generated the minimum revenues of 1,246 thousand dollars (Moon, Bergey, ;amp;Iacobucci, 2010). The Revenues are fair big which justifies the amount of money that celebrities are getting paid. In addition, Tom Cruise, one of the richest celebrities, took 75 million dollars for acting in Mission: Impossible II (“Tom Cruise,” n. d. ), which contributed a gross of 546,388,105 million dollar (“Mission: Impossible II,” n. d. ). his wage is roughly 13. 3% of the movie total grosses which is reasonable compared to the movie revenues, taking in consideration that the revenue that an employee contributes for the firm is a determent if the employee wage. The productivity of people varies so will their salaries. Celebrities contribute a high amount of revenues relative to other workers or employees, so it is well fair that they get paid a high amount of money compared to other workers and employees. Along with the vast amount of revenues that celebrities generate, becoming a celebrity is one of the hardest careers, and the failure rate in this particular career is higher than any other career.
Doctors make more money than firefighters because the failure rate of becoming a doctor is higher than the failure rate of becoming a firefighter. Even though, both doctors and firefighters save lives. The chances of any person to become a celebrity is very low compared to any other path or career. Therefore, it is logical for those who succeeded to be a star to get more money than any other professional workers, because those people are contributing the money that the thousands who failed in the journey of becoming a famous star could have contributed. Most celebrities encountered many setbacks, defeats, and hardships.
Also most of them came from humble families, and have modest starts. Again, the path of becoming a celeb is a very long and hard path. Furthermore, The excessive maturity, of people who took that path, failed. Therefore, when saying celebrities are overpaid, we should take into account that the chances of becoming a celebrity are very slim. In addition to the productivity and the failure rates as determents of celebrities wages, most people look at celebrities as idols and value what they do. A high percentage of people value celebrities, and want to be like them, live their lives, dress like them, and have what they have.
The status that celebrities have is a fortune. It is a very powerful marketing weapon. Large corporations are willing to pay millions of dollars just to have the picture of a famous celebrity on their product. For example, Pepsi paid 50 million US dollars to Beyonce on a deal. According to Forbes, “The unconventional multi-year deal is said to include standard advertising like commercials and print ads” (Casserly, 2012). Therefore, corporations are willing to pay this amount of money to celebrities because many people admire them, and will do what they do. As a result, the sales on the product will increase.
If celebrities do not have this status, no corporation would pay a penny to them. Moreover, the majority of people love what celebrities do. Celebrities entertain, and the entertaining industry is one of the biggest and fastest growing industries around the world. People spends a huge amount of money to watch celebrities. Thus, celebrities get to be paid that amount of money. When discussing the issue of whether celebrities are overpaid, we should answer the question: “overpaid relative to who? ” Doctors are overpaid relative to soldiers, but how come the fact that doctors are overpaid is not questioned?
Equally important, Is “are celebrities overpaid” the right question? Shouldn’t the question be why they are paid this amount of money? Celebrities generate a huge amount of revenues, and they are paid a fair amount of this money. Yet too, can anyone become a celebrity? Is it easy to become a celebrity? Were these questions asked when the wages of celebrities are discussed? It is normal due to the extremely high failure rates that famous stars gets to be paid that much. From where did that money come from? Isn’t it from people pockets? eople pay money to see them, so maybe we can ask the people who pay to watch celebrities: “why do you give celebrities money? ” Nevertheless, people contact soldiers, doctors, firefighters only when they need their help, because people believe that these professionals love them. Do people love them back? I don’t think so. Ironically, People love celebrities. References Casserly, M. (2012, December 10). Beyonce’s $50 million Pepsi deal takes creative cues from Jay Z. Forbes. Retrieved from http://www. forbes. com/sites/meghancasserly/2012/12/10/beyonce-knowles-50-million-pepsi-deal-takes-creative-cues-from-jay-z/ Jackson, S. B. Lopez, T. J. , ;amp; Reitenga, A. L. (2008). Accounting fundamentals and CEO bonus compensation. Journal of Accounting and Public Policy, 27(5), 374–393. doi:10. 1016/j. jaccpubpol. 2008. 07. 006 Mission: Impossible II. (n. d. ). Retrieved April 9, 2013, from IMDB website: http://www. imdb. com/title/tt0317919/business? ref_=tt_dt_bus Moon, S. , Bergey, P. , ;amp; Iacobucci, D. (2010). Dynamic Effects Among Movie Ratings, Movie Revenues, and Viewer Satisfaction. Journal Of Marketing, 74(1), 108-121. doi:10. 1509/jmkg. 74. 1. 108 Tom Cruise. (n. d. ). Retrieved April 9, 2013, from IMDB website: http://www. imdb. com/name/nm0000129/bio