Complaint Review: Screen Actors Guild A. Robert Pisano Former National Executive Director

The degree of corruption at SAG may be worse than the Teamsters was in the 60-70s.

Millions of SAG dues money is unaccounted for or spent on expensive real estate in NYC and branches that serves no useful purpose for SAG members. The number of field reps to enforce contracts is at a minimal number; so where is all this dues money going? SAG funds
various expensive "studies" and consultants who apparently have connections to SAG staff while SAG members right to basic services is studiously ignored and there is pages of information on this.

When I was working regularly on sets; there was very little if any effort by SAG to ensure the production companies abided by the contracts, particularly the rule about hiring the contracted # of background actors. And underpaying of residuals appears to be the rule rather than the exception.

When I or anyone I know filed grievances concerning serious violations costing us substantial money; we were consistently ignored by SAG staff and treated in a rude, cavalier fashion. Then the work seemed to drop off after a few such complaints to SAG. The SAG "union" has shown no interest in supporting my lawsuit against companies engaged in large scale bribery, shakedown schemes and
other illegal theft against working dues paying SAG actors. Their large file on questionable activities by the casting companies apparently isn't accessible to us-for what reason?

SAG is being run by a former MGM executive who as far as I know has never bothered to hold any type of meet and greet session with rank and file members and find out what our interests are and how he can best represent us. I have been informed that several members strongly expressed an interest to Pisano in abolishing the voucher
system, starting a SAG casting office, enforcing the rule that CDs must offer free access to SAG actors and the list goes on and on... and what has he done to address these central issues?

He has been effective at being one of the highest paid "union" directors with hundreds of thousands of our dues money from actors whose average SAG pay is under $5,000 each and getting lower under his tenure.

Apparently some people are above the law and consider the rest of us easy marks.

Where is over $40 million of SAG dues money going?? Reply with quote Analysis of 2004 SAG LM-2 report

Here are some interesting numbers, information from the SAG LM-2 Report, fiscal year ending 4/30/04. Please make your own conclusions; I will present this information as accurately as I can from spending a few hours reading the report.

I have provided the link to the report so the readers of this post can make their own examination as well.

I have selected the information from the report that I believe is most important for SAG dues payers, past and future dues payers and anyone else who may be concerned about how large organizations spend our money.

2nd Part: Where is over $40 million in SAG dues going???

First item of interest:

The Treasurer, James Cromwell(signature was legible), report signature dated 10/21/04

The President, Melissa Gilbert(I couldn't make out the signature but I assume it says Melissa Gilbert who is the current SAG President), report signature dated 10/30/02

My comments: This is the LM-2 Report for fiscal year 5/1/03 to 4/30/04.

So why is the President's signature dated 10/30/02?? Reports are to be signed on a date after the report fiscal period, not before-Why the wrong date?

2nd item Senior staff wages compared to SAG Rep wages:

Here are total compensation levels for the 14 highest paid SAG senior
staff:

1-Pisano, NED $510,119
2-McGuire, Adviser $292,820
3-Weaver, DND $217,417
4-White, Counsel $197,184
5-Batchelor, Dep NED $172,847
5-Kite, CIO $169,917
6-Ellis, ND $162,324
7-Simmons, Exec NYD $159,929
8-Rose, Nat D Comm $140,324
9-Connell, Prod $139,089
10-Lagrua, ND $132,802
11-Kichaven, NDC $130,290
12-Rivera, NDAA $120,522
13-Weiner, Cons, HR $110040
14-Richards, NDAA $103,464

14 highest paid Senior SAG Staff total=$2,759,088

I counted 16 SAG outside business reps(this is the closest I could find to anything resembling field reps(I read one listing called field rep but even a skeptic like me believes some of these business reps must be field reps enforcing contracts, at least I hope so).
The average salary for these reps based on my reading is about $50,000 x 16=$800,000 on outside business reps.

So it shows senior staff total compensation is $2,759,088 versus outside business rep total for 16 reps of $800,000.

I would conclude that over 3 times is spent on SAG senior staff(most of whom is not clear what they do or what their purpose is in benefiting SAG dues payers) vs. what is spent on 16 outside business reps(and it is clear to anyone that reps are critically important to
members for enforcing contracts as well as needed for protecting members safety on sets) to enforce contracts for over 100,000 SAG members. Granted, most of these members don't work at any given time but assuming that about 16% of them are working at any time that is
about 1 rep for every 1000 members covering several hundred sets throughout the country.

My grade on item 2 is F.

My recommendation: Save about 2 million by consolidating senior staff positions, pay them less and hire 40 more field reps for that amount.

Item 3

Residuals Analysts and processors:

I counted 4 of these who I assume their job is to monitor the accuracy of residuals to members.

My conclusion: 4 of these people is not enough to ensure several thousand SAG members are paid several hundred million in residuals correctly and not underpaid. I think this explains all the complaints about not getting paid residuals. SAG needs to hire more of these people, less senior staff and less on real estate leases.


My recommendation: Hire about 20 more residuals analysts for a million and spend a million less on real estate leases.

Item 4

Rent paid was $4,960,958. So that is over 6 times what was spent on outside business reps. If we include all business reps(which includes all the business reps who make the sweetheart(I mean business deals, Im sure not all of them are sweetheart deals) deals with producers that is about 46 total business reps making approx
$2,500,000. Again about half what was spent on real estate.

My conclusion: SAG spent about $5,000,000 of dues payers money on expensive real estate that has little to do with enforcing contracts and less than half that amount on enforcement and encouraging producers to use SAG actors(the business reps job.

My grade F

My recommendation: Save about 2 million a year on real estate payments to outside real estate owners, buy buildings and build equity instead. Use the 2 million saved per year to start and run a casting resource center for SAG members, SAG meeting center for
actors to network for jobs and attend workshops.

Item 5(as listed in Report)

Branch Contract payments- $2,441,529

I assume this somehow refers to paying for branch offices, most of which are unnecessary for SAG members. I believe Pisano was supposed to close several of these offices and centralize them to save money-I guess that never happened-to bad for the dues payers and a
win for Pisano and his cronies

Item 6(listed in report)

Purchased 1 million CD to secure letter of credit for lease at 360 Madison Ave, NYC.

.... just glad I didn't help pay for that either.

Item 7(listed in report)

Employee Training $45,311

My recommendation: Again, spend several million less on the real estate leases, Pisano et al senior staff compensation, branch office "contracts" and spend about a half million of the saved amount on employee training, front line employee perfomance bonuses, a few more cashiers at HQ and for SAFETY SEMINARS FOR NEW SAG MEMBERS ON DANGEROUS SET CONDITIONS that is not presently offered and could save many member lives, health and millions in claims.

Here are a few more items for the reader to ponder:

Funds held in trust for members-$18,694,018(I guess these are residuals of alot of those famous and not so famous members(probably homeless by now) they can't find and don't have enough residuals analysts to find, can't afford them I guess)

IT Hardware and Software $3,112,014(I hope Pisano is not on the boards of some of these hardware and software companies, that is alot of money for the "streamlining" he was talking about)

Professional Fees(listed in the report) $5,443,545- I guess it was spent on those high priced lawfirms and consultants to help Pisano, his agent and producer buddies. Apparently, this is why SAG can't afford a casting resource center, more field reps, safety
seminars and other trivial things.

Another win for Pisano and cronies and a big loss for the dues payers.

My overall conclusions:

SAG is being run by people(studio execs and their SAG senior staff cronies) who are seriously misusing / squandering members' dues money on items that do not further the main purpose and goals of the
organization and instead enrich these people at dues payers expense (the average SAG member making less than $5,000 in earnings per year, a Robin Hood in reverse arrangement, if you will) and do not benefit
SAG members past, present and future.

Analysis from maaporg.com

I think corrupt would be too mild a description for this mess.

SAG Form LM-2, Labor Organization Report at:

http://erds.dol-esa.gov/

For more information also search for Pisano, netflix and find out how this former Studio exec as SAG NED refused to negotiate DVD residuals for SAG members and cheated them out of millions in future income while rewarding Netflix(where he was on the board of directors and cashed in on over 2 million in stock options after he ignored the DVD issue on behalf of SAG dues payers paying him about a half million in salary.

Jonathan
Seattle, Washington
U.S.A.