Gobbla2001
04-22-2007, 12:24 AM
www.chron.com/disp/sto...32495.html
Can listen to the podcast here
Band's benefits stand out in uncertain industry
The road goes on forever and the pension never ends. That's Robert Earl Keen's goal.
The 41,000 fans expected to swarm Minute Maid Park for Jimmy Buffett's Saturday night show probably won't be thinking about the retirement benefits of those onstage during Keen's opening act.
But Keen is something of a rarity among performers in the music business because the Houston native provides retirement and health benefits for his employees.
Considering that Sheryl Crow and Melissa Etheridge have battled cancer, the Who is down to two members and Keith Richards is falling headfirst out of palm trees, it's surprising more musicians aren't thinking about how they will pay for health care and old age.
Meaningful statistics are hard to come by, but a survey of more than 2,400 musicians about six years ago by the Future of Music Coalition found that 44 percent were uninsured, compared with 14 percent for the population at large. Most of those who had insurance said they spent less than half their time working as musicians, meaning they probably got insurance through other jobs.
"Most of my friends that play music don't get a regular paycheck and don't have insurance," said Bill Whitbeck, who's been Keen's bass player for 12 years.
Keen, 51, said he was determined to make a career in music, but he quickly grew disenchanted with the short-term focus of the business.
"My plan was thinking in terms of being in the music business for my entire life, and I thought the way to that is to start with a good foundation," Keen said. "I saw early on that the best way to have a consistent group of guys was to get everybody a steady paycheck and some of the benefits that are out there in the corporate world."
Retirement plan
Twelve years ago, Keen began funding a SEP-IRA, a retirement plan designed for small businesses and the self-employed. Funds can be invested in the same manner as a traditional IRA, and all the recipients receive the same benefits.
Keen has about 10 employees, including his four-member band, a sound man, a road manager and an office that helps manage his career.
In addition to the retirement benefits and salary, all employees receive an annual Christmas bonus, and Keen said he sometimes pays additional bonuses. Last year, he was able to add a health plan, something he'd wanted to do for a long time.
Whitbeck said the move saved him money because he'd previously been carried on his wife's insurance.
"It gives you some sense of security in a very insecure business," he said. "I feel like I have a stake in what goes on. I'm not just a hired hand."
Sense of belonging
That sense of belonging is what Keen hopes to instill in his band members, all of whom have played with him for at least seven years. That stability leads to better playing and tighter sets, Keen said.
"The road life is a hard life. If you provide more consistencies in the whole lifestyle, people are happier with it."
Keen said he saw too many musicians living for the moment and not thinking about long-term careers when he was starting out.
"When you'd have a show, the first thing the musician says is, 'What does the gig pay?' They don't say, 'What are the opportunities? Who are we going to open for? Am I going to have this job next week?' "
Even after a band starts to make it big, the rigors of touring can take their toll.
"Sometimes it wears a little thin when you're talking to your friend over at some computer company or some insurance company and they're telling you the benefits they get. Musicians always feel a little left out in that world."
Club musicians, many session players and those who are employed by symphonies often are unionized. For them, pensions and even health care benefits are more common. The American Federation of Musicians, for example, offers a pension for its members.
I asked him why more touring bands didn't adopt his philosophy. He said the uncertainty that pervades the industry makes the risks too great.
Bearing the risk
But like a lot of industries, it's a question of who bears that risk — the employer or the employees. In the music industry, the answer has been the employees. After all, if they make it big, they may not have to worry about retirement or health care.
That, of course, is the big "if" that defines the music industry. Even a band with talent may not be able to wait for a big break if the financial pressures become too great.
"There's so much uncertainty in the music business," Keen said. "I always felt like it was shortsighted, and I was looking further down the road."
It's a road he hopes goes on forever.
Loren Steffy is the Chronicle's business columnist. His commentary appears Sundays, Wednesdays and Fridays. Contact him at loren.steffy @ chron.com. His blog is at blogs.chron.com/lorensteffy/.
Can listen to the podcast here
Band's benefits stand out in uncertain industry
The road goes on forever and the pension never ends. That's Robert Earl Keen's goal.
The 41,000 fans expected to swarm Minute Maid Park for Jimmy Buffett's Saturday night show probably won't be thinking about the retirement benefits of those onstage during Keen's opening act.
But Keen is something of a rarity among performers in the music business because the Houston native provides retirement and health benefits for his employees.
Considering that Sheryl Crow and Melissa Etheridge have battled cancer, the Who is down to two members and Keith Richards is falling headfirst out of palm trees, it's surprising more musicians aren't thinking about how they will pay for health care and old age.
Meaningful statistics are hard to come by, but a survey of more than 2,400 musicians about six years ago by the Future of Music Coalition found that 44 percent were uninsured, compared with 14 percent for the population at large. Most of those who had insurance said they spent less than half their time working as musicians, meaning they probably got insurance through other jobs.
"Most of my friends that play music don't get a regular paycheck and don't have insurance," said Bill Whitbeck, who's been Keen's bass player for 12 years.
Keen, 51, said he was determined to make a career in music, but he quickly grew disenchanted with the short-term focus of the business.
"My plan was thinking in terms of being in the music business for my entire life, and I thought the way to that is to start with a good foundation," Keen said. "I saw early on that the best way to have a consistent group of guys was to get everybody a steady paycheck and some of the benefits that are out there in the corporate world."
Retirement plan
Twelve years ago, Keen began funding a SEP-IRA, a retirement plan designed for small businesses and the self-employed. Funds can be invested in the same manner as a traditional IRA, and all the recipients receive the same benefits.
Keen has about 10 employees, including his four-member band, a sound man, a road manager and an office that helps manage his career.
In addition to the retirement benefits and salary, all employees receive an annual Christmas bonus, and Keen said he sometimes pays additional bonuses. Last year, he was able to add a health plan, something he'd wanted to do for a long time.
Whitbeck said the move saved him money because he'd previously been carried on his wife's insurance.
"It gives you some sense of security in a very insecure business," he said. "I feel like I have a stake in what goes on. I'm not just a hired hand."
Sense of belonging
That sense of belonging is what Keen hopes to instill in his band members, all of whom have played with him for at least seven years. That stability leads to better playing and tighter sets, Keen said.
"The road life is a hard life. If you provide more consistencies in the whole lifestyle, people are happier with it."
Keen said he saw too many musicians living for the moment and not thinking about long-term careers when he was starting out.
"When you'd have a show, the first thing the musician says is, 'What does the gig pay?' They don't say, 'What are the opportunities? Who are we going to open for? Am I going to have this job next week?' "
Even after a band starts to make it big, the rigors of touring can take their toll.
"Sometimes it wears a little thin when you're talking to your friend over at some computer company or some insurance company and they're telling you the benefits they get. Musicians always feel a little left out in that world."
Club musicians, many session players and those who are employed by symphonies often are unionized. For them, pensions and even health care benefits are more common. The American Federation of Musicians, for example, offers a pension for its members.
I asked him why more touring bands didn't adopt his philosophy. He said the uncertainty that pervades the industry makes the risks too great.
Bearing the risk
But like a lot of industries, it's a question of who bears that risk — the employer or the employees. In the music industry, the answer has been the employees. After all, if they make it big, they may not have to worry about retirement or health care.
That, of course, is the big "if" that defines the music industry. Even a band with talent may not be able to wait for a big break if the financial pressures become too great.
"There's so much uncertainty in the music business," Keen said. "I always felt like it was shortsighted, and I was looking further down the road."
It's a road he hopes goes on forever.
Loren Steffy is the Chronicle's business columnist. His commentary appears Sundays, Wednesdays and Fridays. Contact him at loren.steffy @ chron.com. His blog is at blogs.chron.com/lorensteffy/.