The recent merger of top agencies William Morris and Endeavor has naturally meant too many agents for too few desks, but those let-go have found a loophole to their benefit.
The merger between the two agencies meant a number of agents were back on the job market when looking for a job didn’t promise the most positive outcome. A number found jobs at rivals, CAA, UTA, ICM and Paradigm, though for some it meant a cut in their average $225k salaries.
However, part of their contracts with their previous employers said that if they were made redundant and had to take a job for a lower salary, the previous employer would have to make up the difference for the duration of their old contract. So if they had six months to run at William Morris, then William Morris would have to pay the difference between the lower salary they’re getting at their new job and what they were getting when made redundant.
Agents though are natural wheeler-dealers and some took advantage of this by doing a favourable deal with their new employer. By offering to take a lower salary in return for a bonus at the end of the year or into the next year, making their salary up to what they previously received, they would get the booster extra money from their previous employer, plus the bonus on top!
WME figured this and told them they wouldn’t pay-up on their old contracts so the agents sued and WME backed-down.
And I thought being fired was bad news….
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