Jonathan Ross and celebrity pay deals - who should set market rates?
31 October 2008 | 1 Comment »Ok, I have to admit that I have never really appreciated the popularity of Jonathan Ross. So his comments made at the British Comedy Awards last December on how his £6m annual deal (£18m over 3-years) was worth “1,000 BBC journalists” did not come as a surprise. Needless to say this remark did not earn him popularity when the BBC had earlier announced over 2,000 job cuts.
But the well publicised events of this past month raised wider strategic issues. Two high profile ones must management effectiveness based on the BBC’s handling of the situation and the accountability that arises from public funding through licence fees. And this brings up the question of where responsibility for setting market rates sit. Yes, celebrity pay deals may not be salary packages though the inflationary effect is not dissimilar.
So perhaps the BBC did have to ‘fight off’ rival offers from Channel 4 and ITV when the 3-year deal for Jonathan Ross increased in 2006 by a cool £4.5m to £16m. But did this play a part in Simon Cowell later agreeing to a mega million deal with ITV? The question of who leads (or should lead) the market rate for talent looks set to surface again.
Is it just a debate about the perceived worth of celebrities or does it also have a direct impact on salary packages in the public and private sector? And, if there is an impact, how does this affect issues such as accountability? Tell us what you think..

