20 Most Overpaid Jobs in the World
In this article, we will look at the 20 most overpaid jobs in the world. We have also analyzed the entertainment industry along with its key players. If you want to skip our detailed analysis, head straight to the 5 Most Overpaid Jobs in the World.
Since we are here to discuss the most overpaid jobs in the world, it is important to highlight the most overpaid industry globally. According to our research, the industry perceived with compensations way above their contribution to society is the entertainment industry. Hence, before getting into the list, we shall explore the current state and outlook for the entertainment industry and its key players. If you are interested, do check out the article about the most underpaid jobs in America.
According to the latest market research report from PwC, the Global Entertainment Industry Market's demand analysis reveals that the industry was valued at $2.3 trillion in 2022 and is set to hit $2.8 trillion by 2027. Projections indicate, however, that the industry has been losing momentum, with a 5.4% growth in 2022, down from 10.4% in 2021.
From May 2 to September 27, 2023, the Writers Guild of America (WGA), representing 11,500 screenwriters, came out in a 148-day strike against the Alliance of Motion Picture and Television Producers (AMPTP). This strike, one of the longest in American film and TV production's history, was part of broader Hollywood labor disputes. It disrupted studios, potentially leading to contract terminations.
The key issues in the strike were residuals from streaming media, opposition to replacing writers with artificial intelligence, and demands for "mandatory staffing" and improved pension and healthcare provisions. The strike concluded with a tentative agreement and WGA member ratification.
However, the strike has brought to light a startling disparity in executive compensation within the entertainment industry. A recent report from the Los Angeles Times reveals that David Zaslav, the CEO of Warner Bros. Discovery Inc (NASDAQ:WBD) was paid $498,915,318 between 2018 and 2022, which is 384 times the average earnings of a Hollywood writer.
This huge pay gap is evidence of the widening income inequality between top executives and the writers who create the content that fuels the entertainment business. Notably, while executive pay increased to an average of $28 million in 2021, a 53% increase since 2018, writers' compensation remained relatively stagnant, with average pay around $260,000 in 2021. Median screenwriter pay witnessed a 14% decline when adjusted for inflation over the past five years.
On the financial end, Warner Bros. Discovery Inc (NASDAQ:WBD), one of the key players in the entertainment industry, disappointed with its financial results in the second quarter of 2023 with a net loss of $1.24 billion, or 51 cents per share, falling short of the expected 38 cents per share. Revenue reached $10.36 billion and was below the $10.44 billion estimated.
Global streaming subscribers dropped to 95.8 million, down by nearly 2 million from the previous quarter. However, the company demonstrated a commitment to reducing its heavy debt load. It repaid $1.6 billion in debt during the quarter and announced a tender offer to pay down to $2.7 billion more, boosting its stock by nearly 3%.
Longleaf Partners Fund made the following comment about Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its Q2 2023 investor letter:
“Warner Bros. Discovery, Inc. (NASDAQ:WBD) – Media conglomerate Warner Bros Discovery was the top detractor in the quarter but remained a top contributor for the first half. After a strong first quarter, the stock price faltered in the face of near-term uncertainty around the re-launch of streaming service Max. Additionally, the big-budget movie The Flash has not been a success. Finally, there was well-publicized drama around CNN management, with CNN CEO Chris Licht leaving the company after only one year, which we believe was a positive resolution. The company remains dramatically undervalued today, and management continues to make positive operational progress to drive free cash flow (FCF) growth. We believe this company has seen the worst, so it will be less leveraged and more strategically positioned in the quarters and years to come. Its underlying holdings are high-quality businesses that will drive FCF per share growth while also being attractive acquisition candidates.”
An example to highlight how the entertainment industry and its respective jobs are overpaid can be that of the latest hiring offer by Netflix Inc (NASDAQ:NFLX). Netflix Inc (NASDAQ:NFLX) is offering a huge salary of up to $900,000 for an AI Product Manager role responsible for overseeing their Machine Learning Platform (MLP). This high-paying position also highlights the growing demand for AI expertise as the entertainment industry grapples with the impact of generative AI and automation.
While this is a lucrative opportunity for the right candidate, it also highlights concerns within Hollywood's labor force, where actors and writers fear the potential loss of jobs, autonomy, and fair pay due to unmonitored AI technologies. The SAG-AFTRA and WGA unions have been actively addressing these issues, particularly regarding the use of AI in creative processes. To read more about AI disruptions, check our article about industries being revolutionized by AI and automation.
Speaking of Netflix Inc (NASDAQ:NFLX) and their budgets, their highly anticipated live-action adaptation of "One Piece," based on Eiichiro Oda's popular manga and anime series, is making headlines owing to its huge budget. The series, "Cowboy Bebop," has a budget of approximately $18 million per episode, totaling $144 million for its first season. This budget places "One Piece" among the most expensive television productions, surpassing even iconic shows like "Game of Thrones" and "The Mandalorian," both of which had budgets of $15 million per episode. Such a high budget will translate into huge pay cheques for the cast of actors, who have one of the most overpaid jobs in the world.
Compared to "Cowboy Bebop," which was canceled after its first season due to low profitability despite a budget of around $6-7 million per episode, "One Piece" is making a huge investment. However, it should be noted that the budget for "One Piece" is still lower than that of some other high-profile series, including "The Lord of the Rings: The Rings of Power" and "Stranger Things." With this grand financial backing, Netflix Inc (NASDAQ:NFLX)’s "One Piece" series has high expectations as it brings the pirate adventure to a live-action format.
Photo by Karolina Grabowska: https://www.pexels.com/photo/hands-holding-us-dollar-bills-4968630/
Methodology
For our list of the most overpaid jobs in the world, we have tried to include jobs that have been perceived as “overhyped”, “highly compensated for little to no skills requirement”, “jobs with no value and purpose” but are paying far more than required. We understand that these phrases are subjective and depend on the perception of the individual in question. Hence, after reading several Reddit threads related to such jobs, we have tried to give an overall score to the level of being overpaid. The jobs listed have a mix of all the above indicators, and the scoring is based on consensus out of a total score of 30. A higher score indicates a higher consensus about the job being overpaid.
Here is a list of the most overpaid jobs in the world.
20. Televangelists
IM Score: 9
Televangelists are often perceived as overpaid because they receive a fair amount of income from their religious broadcasts and followers' donations. People argue that these earnings appear excessive compared to the modest lifestyles they advocate for in the name of faith.
19. Management Consultants
IM Score: 11
With management consultants, people complain that they command high fees for often generic advice, limited tangible results, and a reputation for jargon-laden solutions that may only sometimes add substantial value. It is one of the jobs people think are overpaid.
18. Software Tester
IM Score: 12
The role of a software tester often involves less technical complexity than developers and, hence, leads some to believe they are compensated disproportionately for their tasks. This also explains why software tester is one of the easiest jobs that pay $100K.
17. Optometrist
IM Score: 13
The perception that optometrists are overpaid usually stems from their relatively brief training compared to other healthcare roles while still commanding high salaries. Some argue their work primarily involves routine eye care, which is less critical than more complex medical specialties. To read more about less technical medical jobs, check our article about the highest-paying healthcare jobs without a degree.
16. Meteorologist
IM Score: 15
Meteorologists often predict the weather inaccurately because the system they're describing is nonlinear, with even very tiny variations in the initial conditions accumulating to enormous changes later on. Moreover, people do not complain even when predictions are inaccurate due to the inherently unpredictable nature of the weather. It is one of the most overvalued jobs in the world.
15. Hedge Fund Managers
IM Score: 16
Their overcompensation is justified by many earning exorbitant fees, often regardless of performance. Critics argue that their returns don't consistently outperform the market, and their compensation model can incentivize excessive risk-taking, adding to the financial instability. It is one of the most overpaid jobs in the world.
14. Corporate Lawyers
IM Score: 17
Corporate lawyers are often seen as overpaid because most businesses do not need their services daily. Their work primarily involves complex legal issues, such as mergers, acquisitions, and litigation, which are infrequent events. It is one of the jobs with inflated salaries.
13. Congressional Representatives
IM Score: 18
Firstly, their base salary of $174,000 is higher than the median income of the average American, which can create a disconnect. Additionally, some constituents may feel their representatives must address critical issues more effectively, which they are not doing.
12. Recruiters
IM Score: 19
Their salaries are often perceived to be too high relative to the perceived complexity of their job, which involves matching candidates to job openings. Moreover, the availability of online tools has streamlined recruitment processes, leading to serious questions about the value added by recruiters.
11. CEOs
IM Score: 20
Executive compensation often involves bonuses, stock options, and golden parachutes, which can result in huge payouts, even in poor performance. Moreover, the complexity of corporate governance and compensation committees can make it appear that CEOs have undue influence in setting their pay. People argue that these factors contribute to income inequality. It is one of the most overpaid jobs in the world.
Comcast Corp (NASDAQ:CMCSA), CEO Brian Roberts earned $32.1 million in 2022, 33 times more than the average Philadelphian's $75,205 annual salary in 2021. On the other hand, Alphabet Inc (NASDAQ:GOOG)’s CEO, Sundar Pichai, was the top-paid S&P 500 CEO with a $226 million package in 2022.
10. Life Coaches
IM Score: 21
Life coaches are sometimes perceived as overpaid because their fees can be relatively high for offering advice and motivation, skills that many believe can be self-taught or acquired through personal experience. There is also this belief that life coaching is a luxury rather than a necessity; hence, the fee is mostly not worth it. It is one of the jobs that should pay less than they do now.
9. High School Football Coaches
IM Score: 22
High school football coaches are sometimes perceived as overpaid due to concerns over the allocation of resources within the education system. Critics argue that their salaries, often higher than teachers', can strain school budgets, potentially affecting academic programs. It is one of the jobs that are definitely overpaid.
8. Pharmaceutical Executives
IM Score: 23
For this role, people argue that the high cost of medicines and drugs is attributed to the excessive executive salaries. Moreover, the life-saving nature of pharmaceuticals adds to the perception that executives are profiting from people's health needs. While some argue these high salaries are necessary to attract the best talent, the perception of overpayment persists, particularly when it's believed to come at the expense of patient access and affordability. Regarding the pharma industry, check our article about the highest-paying countries for pharmacists.
7. University Administrators
IM Score: 24
Market-driven approach to education has prioritized attracting top administrative personnel to compete for students and funding. This focus on management and marketing can overshadow the core educational mission which makes people believe that administrators are disproportionately compensated compared to teachers. It is one of the most overpaid jobs in America.
6. Real Estate Agents
IM Score: 25
Real estate agents earn based on commission, where a percentage of the property's sale price is earned as a fee. In high-priced markets, this can appear huge. These fees may only sometimes align with the effort or expertise demonstrated. It is one of the most overpaid jobs in the world.
Click here to see the 5 Most Overpaid Jobs in the World.
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Disclosure: None. 20 Most Overpaid Jobs in the World is originally published on Insider Monkey.
