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Michael Jackson Executors Want 10%

ivy said:
blueocean : the following link is the will please take the time to read it. it is only 4 pages long. if you read it you will see that the will does not state any percentage of payment to the executors. Any percentage that you might have heard before is just a made up number either by media or people and it is not based on Michael's will. Details of the trust has been private but people have been speculating about it as well.

http://i2.cdn.turner.com/cnn/2009/images/07/01/michael.jackson.will.pdf
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According to my understanding, states have laws regarding this - don't know what Cal. laws are- but executors are entitled to commission - TV shows generally say 3-5% go to the executor.

I found this on New York law about commissions:

The commission rate in New York for each Executor is 5% on the first $100,000 in the estate, 4% on the next $200,000, 3% on the next $700,000, 2-1/2 % on the next $4,000,000 and 2% on any amount above $5,000,000. Banks and Trust Companies may charge more for their services as Executors and Trustees, and particularly as money managers.

The % seems to go down the larger the amount, kind of like real estate transactions - a realtor gets a smaller % on multi-million dollar deals.

I think 10% is too high - I'm sure they get kickbacks too - kind of like Dileo was going to get from AGE by signing MJ.
 
^^^
jrsfan - correct me if I am wrong but I think they are talking about an tiered % in the above information as it states "on the next". btw it is 10% total therefore 5% each. In any case we'll see whether the judge finds it suitable or not. If it is too high than he would not approve it.

for example if the estate makes 8 million in this example
100,000 * 5% = 5000
200,000 * 4% = 8000
700,000 * 3% = 21,000
4,000,000 * 2.5% = 100,000
3,000,000 * 2%= 60,000
 
ivy said:
^^^
jrsfan - correct me if I am wrong but I think they are talking about an tiered % in the above information as it states "on the next". btw it is 10% total therefore 5% each. In any case we'll see whether the judge finds it suitable or not. If it is too high than he would not approve it.

for example if the estate makes 8 million in this example
100,000 * 5% = 5000
200,000 * 4% = 8000
700,000 * 3% = 21,000
4,000,000 * 2.5% = 100,000
3,000,000 * 2%= 60,000
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Ivy, I am not sure - but it is Jeffrey Toobin on TV who says fee is generally 3-5% total - not 5% to each executor - if there were 4 executors, then it would be 20%. He talked alot on TV when they were discussing the ANS estate, explaining it. There were other talking heads on other channels too.

I assumed it would be similar to real estate transactions, the % goes down as the $ of the deal goes up. They still make more money on bigger deals but need a bigger % to compensate for their time on the smaller ones.

They made comparisons to Janis Joplin, Morrison & Otis Redding in their argument but they are much smaller estates - not good comparisons.

I looked at Elvis's will & I noticed that Lisa Marie got control at age 25 - but when I look at this argument I got the feeling that these executors were going to control it forever, generations... I would hope that PPB will control their father's legacy.

I think 10% is too high, because of the size of the estate worldwide - I think the judge will approve it though as he seems totally on the side of the executors. We''ll see.
 
jrsfan said:
Ivy, I am not sure - but it is Jeffrey Toobin on TV who says fee is generally 3-5% total - not 5% to each executor - if there were 4 executors, then it would be 20%. He talked alot on TV when they were discussing the ANS estate, explaining it. There were other talking heads on other channels too.

I assumed it would be similar to real estate transactions, the % goes down as the $ of the deal goes up. They still make more money on bigger deals but need a bigger % to compensate for their time on the smaller ones.

They made comparisons to Janis Joplin, Morrison & Otis Redding in their argument but they are much smaller estates - not good comparisons.

I looked at Elvis's will & I noticed that Lisa Marie got control at age 25 - but when I look at this argument I got the feeling that these executors were going to control it forever, generations... I would hope that PPB will control their father's legacy.

I think 10% is too high, because of the size of the estate worldwide - I think the judge will approve it though as he seems totally on the side of the executors. We''ll see.
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Ok, here is what I think. The executors are asking for 10% but this is profit driven. They have excluded the sales from This Is It and the Sony/ATV catalog and are instead leaving that money to go to debt and I assume that since the Sony/ATV catalog is maintained and driven much by the Sony/ATV board, they aren't having to 'work' to maintain the money there...so they are asking for profits on what they generate and have to work on.

It takes work and to be honest, people should be paid for their work.

Many times executors just settle matters and that doesn't include near as much work. This is a huge estate and there are tons of legal issues and there are a lot of claims being made and contracts to be read, etc.
 
John Branca and John McClain deserve 10% from This Is It, they do a brilliant job for Michael's estate that no other team could do.
 
Ridiculous. 1% is more than enough given what MJ's estate has made in the last 6 months.
 
darmin said:
Their argument is kinda faulty, those other people that give away 15-25% aren't Michael Jackson. 10% of Michael's profits is a lot of money. What are they getting now?
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When you're in charge of an estate that is worth more money than others, it makes sense to be paid more money for administerting it. That's why they go by percentage and not a flat rate. It's not an easy job to be doing what Branca and McClain are doing for the estate.
 
mickyj007 said:
Ridiculous. 1% is more than enough given what MJ's estate has made in the last 6 months.
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That's the most backwards logic I've ever seen. CEOs of billion dollar companies get paid more than CEOs of million dollar companies. The more money you are in charge of, the more you get paid. That's the way the world works.
 
mickyj007 said:
Ridiculous. 1% is more than enough given what MJ's estate has made in the last 6 months.
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I have to agree with you. some here thought the estate administrators deserved 10% cause they did the excellent jobs. You had to keep in mind " people buy his ablums, memorial, books, and movie etc. because of Michael Jackson". John Branca and John McClain had accepted plenty of deals since Michael's death. That's their job as the executors and they just did their jobs. Are you satisfied "This is it" CD? Do you forget the big mess after the song " This is it" release? Do you expect John Branca and John McClain could make the press conference after media's continued distortion of Michael's FBI file. Don't you think the estate executors should have defended and protected Michael's legacy much more in the last 6 months? by the way, Kenny Orgeta did the excellent job of making the movie " This is it", not the executors( they just did their job).

Yes, John Branca and John McClain did more jobs than any other celeb estate, but they got more. The estate generated around 150 million dollars in the last 6 months, the amount most celeb's estate cannot even dream of. In the beginning, the estate had to face some chaos and deal with some creditor claims, which was happened in every estate. but later, everything will back on track. They want to get 10% for the rest of their life, no way. Once again, John Branca and John McClain deserved 3%, the amount listed in Michael's will. I hope Katherine's lawyer could file the objection.
 
mickyj007 said:
Ridiculous. 1% is more than enough given what MJ's estate has made in the last 6 months.
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Keep in mind that the Sony/ATV catalog AND This Is It profits have been excluded. I think you are being a bit stingy.
 
loveforever said:
I have to agree with you. some here thought the estate administrators deserved 10% cause they did the excellent jobs. You had to keep in mind " people buy his ablums, memorial, books, and movie etc. because of Michael Jackson". John Branca and John McClain had accepted plenty of deals since Michael's death. That's their job as the executors and they just did their jobs. Are you satisfied "This is it" CD? Do you forget the big mess after the song " This is it" release? Do you expect John Branca and John McClain could make the press conference after media's continued distortion of Michael's FBI file. Don't you think the estate executors should have defended and protected Michael's legacy much more in the last 6 months?

Yes, John Branca and John McClain did more jobs than any other celeb estate, but they got more. The estate generated around 150 million dollars in the last 6 months, the amount most celeb's estate cannot even dream of. In the beginning, the estate had to face some chaos and deal with some creditor claims, which was happened in every estate. but later, everything will back on track. They want to get 10% for the rest of their life, no way. Once again, John Branca and John McClain deserved 3%, the amount listed in Michael's will. I hope Katherine's lawyer could file the objection.
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It does not matter about the size of an estate. Anyone who runs an estate is entitle to 10 to 15%. If the estate is worth alot of money that most, you get paid more, it is just that simple. It is no about given people the same salary, it is about how much the estate makes. Which is why people who run an estate want it be be successfully because they get pair more.

Brance and McClain also went several months without a paycheck and they are not taking the money everything. They purposely left out several big projects, which they didn't have to do all.

At the end of the day, they are business men, not saints. They would want to get pay their dues just like any one else in the world. I think some of you would not be complaining if one of the family members was running the estate and ask for the full 15% from everything.
 
Eric said:
That's the most backwards logic I've ever seen. CEOs of billion dollar companies get paid more than CEOs of million dollar companies. The more money you are in charge of, the more you get paid. That's the way the world works.
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Still doesn't make it right. No one needs that much money, lol.
 
loveforever said:
I have to agree with you. some here thought the estate administrators deserved 10% cause they did the excellent jobs. You had to keep in mind " people buy his ablums, memorial, books, and movie etc. because of Michael Jackson". John Branca and John McClain had accepted plenty of deals since Michael's death. That's their job as the executors and they just did their jobs. Are you satisfied "This is it" CD? Do you forget the big mess after the song " This is it" release? Do you expect John Branca and John McClain could make the press conference after media's continued distortion of Michael's FBI file. Don't you think the estate executors should have defended and protected Michael's legacy much more in the last 6 months? by the way, Kenny Orgeta did the excellent job of making the movie " This is it", not the executors( they just did their job).

Yes, John Branca and John McClain did more jobs than any other celeb estate, but they got more. The estate generated around 150 million dollars in the last 6 months, the amount most celeb's estate cannot even dream of. In the beginning, the estate had to face some chaos and deal with some creditor claims, which was happened in every estate. but later, everything will back on track. They want to get 10% for the rest of their life, no way. Once again, John Branca and John McClain deserved 3%, the amount listed in Michael's will. I hope Katherine's lawyer could file the objection.
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Before you speak you should have read the document provided earlier.

THIS IS IT was NOT included in their 10%. The profits from that movie are going to AEG to pay Michaels DEBT to them. That is how profitable it was for them to murder him as some say. He OWES them.

THERE IS NO AMOUNT LISTED IN THE WILL. Period. It is up to the judge to decide by the amount of work being done.

They have also WAIVED future rights on much of the recording so that it is FREE services to the estate.
 
mickyj007 said:
Ridiculous. 1% is more than enough given what MJ's estate has made in the last 6 months.
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Now that argument is just plain wrong. Branca and McClain are doing things besides admin testing the estate. A constant fight with Joe and down right silly lawsuits that are being filed and that Michael left behind. They are doing a fabulous job they are doing what Michael wanted. You want to go cheap and bring in two totally clueless people to run it?
 
Eric said:
So you basically expect Branca and McClain to work for free? How nice of you!
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without a proper management,ceos,lawyers,the so called "bad guys",whatever brand or estate is destined to fail,or it wouldn't even exist in the first place...sometimes pp forget that art doesn't sell itself..if it's true that many managers ruined their own clients it's also fair to say that a lot more, made it possible for them to make it really really big...so far the executors have done a great job and 10% is fair.
 
I agree that the executors should be paid for their work. They both had law-practices, and managing the estate must a full-time task. How much they should be paid, I'm not sure. I'd expect the percentages would be governed by California law? I'm sure the judge will determine fairness, under California law.

I have two concerns. The first is, is there any provision for the management of the estate to transfer to PP & B when they come of age, as it was with LMP and her father's estate? It would seem that at some point they should be able to choose who manages the money. If they are fine with the current executors, well. . that's good. But I just hope when they are older they will have more control, as would be age-appropriate.

The second concern has to do with WHAT is marketed. I'd hope that quality is considered first, in terms of the legacy, and profits would be second. The estate will make plenty of money, I'm sure, regardless. In other words, I hope the goal is not make money at all costs, but choose wisely what to market with the over-all body-of-work in mind, and the legacy. I hope that is what will happen.
 
Victoria83 said:
I agree that the executors should be paid for their work. They both had law-practices, and managing the estate must a full-time task. How much they should be paid, I'm not sure. I'd expect the percentages would be governed by California law? I'm sure the judge will determine fairness, under California law.

I have two concerns. The first is, is there any provision for the management of the estate to transfer to PP & B when they come of age, as it was with LMP and her father's estate? It would seem that at some point they should be able to choose who manages the money. If they are fine with the current executors, well. . that's good. But I just hope when they are older they will have more control, as would be age-appropriate.

The second concern has to do with WHAT is marketed. I'd hope that quality is considered first, in terms of the legacy, and profits would be second. The estate will make plenty of money, I'm sure, regardless. In other words, I hope the goal is not make money at all costs, but choose wisely what to market with the over-all body-of-work in mind, and the legacy. I hope that is what will happen.
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I agree. The executors should be paid. Michael's affairs are more than a full-time job.

I also agree that the legacy must be protected and shouldn't be only about money.

My thoughts are with Prince, Paris and Blanket daily. I hope they are able to live the life Michael dreamed for them. :angel:
 
ivy said:
^^^
jrsfan - correct me if I am wrong but I think they are talking about an tiered % in the above information as it states "on the next". btw it is 10% total therefore 5% each. In any case we'll see whether the judge finds it suitable or not. If it is too high than he would not approve it.

for example if the estate makes 8 million in this example
100,000 * 5% = 5000
200,000 * 4% = 8000
700,000 * 3% = 21,000
4,000,000 * 2.5% = 100,000
3,000,000 * 2%= 60,000
Click to expand...


mickyj007 said:
Ridiculous. 1% is more than enough given what MJ's estate has made in the last 6 months.
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These 2 ....jdjdfljkdfjfj., Know what they are doing they have over 30 years of swindling and doing what they do, it took Mick Jagger and The Rollings Stones with Mick chasing Klien out of a meeting down a hall to let people understand just what these TYPES of MANGERS really do. If anyone has any doubt go back and read your headlines "Michael Jackson #1 Music Seller in THE WORLD a day after his Death", now I know some of you cannot even imagine how much money that was or wrap your mind around it just picture every artist in the world didnt make any money that day because it all went into Branca and McClain Accounts because see this is no longer Michael Jackson's Money only his name is on it as "ESTATE" how cute. They wrote this "WILL" so eloquent "they actually OWN MICHAEL JACKSON's NAME AND HIS MONEY FOREVER" unless these Jacksons and Michael's chosen Fans stop them.



benscarr said:
John Branca and John McClain deserve 10% from This Is It, they do a brilliant job for Michael's estate that no other team could do.
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Are people just on some special type of bandwagon for these people that ignores one thing and promotes another "MICHAEL JACKSON has been MURDERED" and it wasnt for his Beautiful Looks. These people keep talking about Branca and McClain deserves this, doing a Brilliant Job, they have done a GREAT Job, let me tell ALL of you something the "ONLY SOMEONE THAT HAS BEEN DOING A GREAT JOB AND WORKING HERE IS A MURDERED MICHAEL JACKSON" because his music would sell if my Grandmother was selling it on the Coroner, so all this credit for people that may be responsible for this man's Murder is just an Assumption and Rumor or Speculation at best, especially if they are found out to have any one of their two hands in Michael Jackson's Murder then that would mean that they also gave themselves "THIS JOB by FORGING his WILL", this is a MURDER INVESTIGATION in case anyone has FORGOTTEN, not an Accident or Sucide but Murder and according to LAPD "by SOMEONE ELSE's HANDS" how much clearer do you need it to get Branca and McClain little Cheerleading Crowd, but dont worry LAPD are going to tell a story to put all these fantasies in the Graveyard. What Work ? What Great Job have they DONE ? and the only thing Brillliant is how this plan was put together and the patience of over 20 years they waited to bring it to pass, because Michael is still Working for THEM they dont do nothing for Michael but FIGHT HIS FAMILY . ALL they have to do is COUNT THE MONEY and Hide it. Yes that what I said because this is a Murder and someone MURDERED my BELOVED MICHAEL JACKSON and everyone especially "MANAGERS" are suspects in a murder wheter the news says it, not even family can be excluded in Murder Inverstigations, Whoever did this and Im with LaToya "they are Many" Ill just call them "Legion", they think they are getting away with it but it aint Happening no matter who they send out. Michael Jackson "OFFICIALLY" has been Murdered its no Secret its all in the News in case anyone missed it, so try to play it down all you want but LAPD aint having it this man was subjected to an "OVERKILL as they say INTENTIONALLY".
 
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Victoria83 said:
I agree that the executors should be paid for their work. They both had law-practices, and managing the estate must a full-time task. How much they should be paid, I'm not sure. I'd expect the percentages would be governed by California law? I'm sure the judge will determine fairness, under California law.

I have two concerns. The first is, is there any provision for the management of the estate to transfer to PP & B when they come of age, as it was with LMP and her father's estate? It would seem that at some point they should be able to choose who manages the money. If they are fine with the current executors, well. . that's good. But I just hope when they are older they will have more control, as would be age-appropriate.

The second concern has to do with WHAT is marketed. I'd hope that quality is considered first, in terms of the legacy, and profits would be second. The estate will make plenty of money, I'm sure, regardless. In other words, I hope the goal is not make money at all costs, but choose wisely what to market with the over-all body-of-work in mind, and the legacy. I hope that is what will happen.
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You're spot on Victoria, it is my hope that quality will be put ahead of quantity. Michael stood for quality and excellence and now that he is not here that should'nt change.
 
Payment ok... how much I don't know I think there was never an estate like this one before but maybe it could be oriented by common rates doing a job like this. I'm absolutely without any idea if 10% is higher or lower than the 'norm'?

Then again I'd like the estate to not only go for money. As much as I liked the song this is it, please don't jump on me for saying my opinion, I think Michael himself would have gone for some better quality. That did sound in parts to me as if it were done in a pretty low quality studio in a private basement somehow. So I hope financial gain is not generally ALL ppl will go for.
 
Victoria83 said:
I have two concerns. The first is, is there any provision for the management of the estate to transfer to PP & B when they come of age, as it was with LMP and her father's estate? It would seem that at some point they should be able to choose who manages the money. If they are fine with the current executors, well. . that's good. But I just hope when they are older they will have more control, as would be age-appropriate.
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For the first one I guess we'll never know it as of now the trust is private. Time will show us. I think there are 3 possibilities
1) they get the full control/ownership/inheritance at 21 or 25 or
2) they get a seat at the board of directors or
3) they just get their share from the profits.

2 things make me think that there will be at least some sort of management team/ executors for the long term
1) The will says that the executors can name replacements and
2) the recent document (the part about hiring people) mentions managing the business so that it could support generations to come.

I personally prefer a professional team of people who are knowledgeable in music industry, law, management, marketing etc to manage the estate with input from PP&B because
1) the estate is too big, too diverse (2 music catalogs, a production firm, unreleased songs, several real estate properties and so on) and to complicated to be managed and to be left to PP&B's hands alone
2) Also I would want the estate to support MJ's kids, grandkids and generations to come. In the history we have heard several stories about how heirs lost their inheritance, bankrupt the business etc. It is much more safe to have some sort of professional management team in place with PP&B having a say/ a seat in the board of directors/executors table.
 
Memefan said:
Some folks need to take their darn medicine before posting.
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Why stoop to this level Meme making fun of people, just let people be themselves its going to be alright, I understand you have to do what you must. But there people really hurting they know there will NEVER be this type of Dedication and Love and Entertainment from another Artist in their Life Time, they know these people who MURDERED Michael Jackson not only "MURDERED Music when they MURDERED Michael but they also KILLED Entertainment". So making fun of them is not going to help you or your cause either, allow people to express their raw emotions. I do understand you, sometimes being Simple has it advantages.
 
blueocean said:
I cant remember the exact amount the will states the administrators should get, but I believe its less than 10% and they are asking for more than what michael stated in the will, some fans complain when joe ask for money,and praise branca for asking for more, cant figure that out. and yes this would be considered a challenge of the will by branca and mcclain.
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You don't remember ...because there is no such thing in the will. NO AMOUNT OR PERCENTAGE IS LISTED IN THE WILL.

GO BACK AND RE-READ THE WILL.
 
Maybe someone should explain exactly what the executors do, and the role they have had in Michael's affairs during his lifetime, because some people don't seem to understand what their job is.
 
MJ#1WhoIsIt - I believe your posts are more suitable for the investigative unit as they are ALL conspiracy theories. Just my 2 cents.
 
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