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Jay Leno Takes 50% Pay Cut To Save Staff’s Jobs

Submitted by on September 11, 2012 – 7:30 am Comments

Jay LenoIn today’s society where greed seems to define us, it can be shocking when someone is so giving of their money. The late night host, Jay Leno, just took another pay cut in order to save his staff members jobs. And this was no tiny pay cut either. Leno actually took a full 50% pay cut in order to help NBC’s budget slashing efforts. Leno was reportedly earning nearly $30 million prior to the pay cuts, but is now earning $15 million.

NBC entertainment chief, Robert Greenblatt, said that the budget cuts had been in an effort to balance out extra money that was spent on Len’s show when it was briefly moved to prime time in 2009. After the move, it was later moved back to its original 11:35 time slot, but kept its increased budget. Greenblatt said that the budget cuts only brought the show’s expenses back down to what they were pre-prime time.

Part of the negotiations regarding Leno’s paycheck also included a contract extension for the talk show veteran. Leno’s contract was extended for two more years and will expire May 2014. Part of the budget cuts led to NBC laying off 20 workers from the “Tonight Show” staff and the overall budget for the show, which is around $100 million annually, was reduced by about 20 percent. A large chunk of that was Leno’s $15 million pay cut.

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Other stars have had to take pay cuts in order to ensure their jobs. Tom Cruise took a severe pay cut from his normal $25 million fee for a film when he made “Mission: Impossible 4.” With the economy still struggling, Hollywood is no different. Though the executives at Paramount were cutting off a few dollars to Cruise up front, that did not mean that he didn’t get paid quite nicely for the film. Word is that he earned quite a bit on the back-end of the film, after it broke even. Cruise did earn over $70 million on each of the previous “Mission: Impossible” films.Tom Cruise Mission Impossible 4

Some critics were saying that the fact that Paramount was not offering quite as much money up front meant that Cruise is not quite the box office king that he once was, but that really is not the case. Stars help to guarantee an audience, and Cruise is one of those stars. What Paramount was actually doing was simply trying to get a high grade product at a reduced rate. And they did just that. But Cruise won out in the end, thanks to just how well his film did.

Keaven Neely

Keaven is a stay at home mother of two little girls. She writes her blog This Mama Is Crazy and also sells her arts and crafts on her Etsy site. Writer of “The No BS Zone”

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