As one gets older and starts considering a career in music, the reality becomes a bit more grim. In this country, only a handful of orchestras pay what I consider a decent salary. For the most part, musicians are severely underpaid, especially when you consider the amount of training, skill, and commitment required.

The NAC Orchestra currently enjoys the highest minimum annual salary in Canada. A base musician earns $79,000 for a 46-week season, although a lot of musicians make more than that due to overscale payments, electronic media fees, and extra fees for doubling. The orchestras in Toronto and Montreal used to be in the same range, but their salaries have fallen back a bit in recent years. For the sake of comparison, the Boston Symphony has the highest minimum annual salary this season in the U.S. at almost $123,000.

The majority of orchestra musicians in this country aren’t so fortunate. Most professional orchestras in Canada pay minimum salaries between $25,000 and the low $40′s. With fees that low, it’s basically a necessity to pick up teaching jobs and other playing engagements to make ends meet.

A couple of months ago, I came across a job posting for Principal Percussion of the Victoria Symphony. If I was still pursuing an orchestral career, that’s a job I would be very interested in. Rather than a weekly fee, the position provides a guaranteed number of services. Total guaranteed fee? Just over $21,000 a year. Median price of a single-family home in Victoria? $545,000. Sigh.

The starting salary for my first admin position ten years ago, with my complete lack of experience, was $35,000. While not a huge sum, I do find it odd that I was making more than professional musicians with years of experience in some pretty decent orchestras. No wonder part of me felt like I was selling out.

This post made me think of something Michael Hovnanian wrote on his blog a while ago. He described his evolution from beginner to sophisticated professional as follows:
1) wanting to hear myself play
2) wanting others to hear me play
3) wanting to be paid to play
4) wanting to be paid not to play

At the other end of the salary spectrum, Drew McManus continued his 2008 Orchestra Compensation Report today with a post on Music Director salaries. Click here to find out which maestro earned $2,189,455 in 2005-2006.

In the U.S., non-profit organizations like symphony orchestras file tax forms that are made available to the public. By using guidestar.org, it’s possible to look up your favourite orchestra and get information on the highest-paid employees – usually the Music Director, Concertmaster, and Executive Director / CEO. Fortunately for us lazy folks, Drew does all the leg work by gathering up this information and publishing it in a number of handy charts.

Even after ten years in the business, I’m still astounded by the amounts of money that are involved in the big (and not-so-big) U.S. orchestras. For example, the average salary of the top ten Executive Directors in 2005-2006 was almost $529,000. Sure, it’s an incredibly demanding job to run a major orchestra, but that still seems like a lot of money to pay someone running a non-profit.

There are some surprises on the list. For example, the ED of the Colorado Symphony received $282,000 while his counterpart at the Dallas Symphony earned a more modest $265,000, despite the fact that the Dallas Symphony’s operating budget is more than twice as big. Even a mid-size orchestra like the Fort Worth Symphony pays its top executive a salary in excess of $270,000.

The picture is quite different in Canada. Although you can’t find salary information for employees of Canadian orchestras, I can assure you the salaries aren’t in the same league. Don’t get me wrong – it’s possible to earn a very decent living running an orchestra in this country, but you’re certainly not going to get rich doing it.

I sometimes find the wage gap between base musicians and the top executives a little disturbing. When I was talking to a headhunter for an orchestra in Southern Ontario last year, one of the concerns I had was the job paid about five times more than the base salary for musicians. That’s a pretty huge gap, and part of me wondered whether I’d feel any guilt about the obvious discrepancy. (Dear potential future employer who has found this post: I no longer bear any such concerns).

If you think it’s only the suits who are making a lot of money in U.S. orchestras, don’t worry. In the next few days, Drew will post salary details for Music Directors and Concertmasters. Let the griping begin…

As you are no doubt aware, we are living in a time of scarcity. Consumer demand for essential commodities, such as grains, oil, and gold, has created sharp price increases for many essential goods over the past year.

On the weekend, I went to purchase a scone at my favourite neighbourhood bakery. The same scone that cost $1.45 last year now set me back $2.05, an increase of 41.4%. It’s gotten to the point where I have to choose between baked goods and cigarettes, and it’s placing a lot of stress on me.

Later that day, I went to fill up my Hummer at the gas station. I could hardly believe my eyes when the pump read a final total of $112.06. As the summer approaches, I can only imagine the price will increase even more. What am I supposed to do when it pushes $150 for a fill-up, buy a Prius? Please.

Even gold and precious metals are not immune from these precipitous price increases. I went to pick out some new custom grillz this morning, and it was going to cost me a cool five g’s. How can I maintain my street cred if I can’t afford the bling?

As a result of these commodity cost increases, my first quarter results show a loss of $4,028. While revenues increased by a modest 2.5%, operating expenses were up 27.5% over the first quarter of 2007.

So, with a heavy heart, I must inform you that I am imposing a $100 per week commodity surcharge on top of my current salary. I can assure you this is not a decision I have taken lightly. I held off as long as economically possible but with the unrelenting and unprecedented increases in the cost of commodities over the last year, I am implementing this measure to offset the effect.

Please don’t mistake this for a salary increase. My salary will remain the same. I will just be taking home an additional $5,000 per year to offset commodity prices. Same salary. Slightly more money. Not a raise. A cost of living adjustment. Understand?

The Canadian economy thanks you for your commitment to my long-term financial sustainability.

With best wishes,

Mr. Dearlove

A couple of days ago, I thought I’d do a quick estimate of how much we’ve spent on child care over the past few years. After scribbling some notes on a scrap of paper, I arrived at the figure of $53,000 spent to date. I did a bit more scribbling, and pegged future daycare spending at an additional $33,000, for a grand total of $86,000.

I’m not complaining…much. We have been fortunate to get spaces at great daycares for the boys, with terrific caregivers and nice facilities. Over the past three years we’ve gotten used to the monthly payments, and I try not to think about it too much. No good can come from thinking of all the other things you could do with $86,000…

Consider the other big financial investment that many parents make for their kids – university. Financial institutions and the government try to put the fear of God into you that if you don’t start putting money in an RESP when your child is still in diapers, you won’t be able to afford a quality education. You’re given 18 years of interest and government grants to build up a nest egg that will see your son or daughter through a few years of school.

Compare this to daycare, which is comparable to the cost of tuition and other fees. Many parents have spent whatever savings they have on a down payment for a home, and then you usually take a pay cut while you’re at home during your child’s first year. So, you’re broke and stressed worrying about getting a space for your child, and then when one finally opens up, you get to scrape together $1,100 a month for the privilege.

Given that the Conservatives’ national daycare program consists of giving parents $100 a month ($60 after taxes) to offset the cost, I think we need to come up with a different strategy. I propose stealing a page from the RESP model and taking advantage of the miracle of compound interest.

Under my new RDSP (Registered Daycare Savings Plan), children would begin contributing monthly payments at the age of 12. Weekly allowances, money from paper routes and snow shoveling, and cash gifts from grandparents would be funneled into a tax-sheltered fund that would grow over time. Kids will watch in wonder as their meagre savings grow year after year, and they’ll delight in learning about Canada’s tax system.

Of course, 12 is only a suggestion based on national statistics. If your child looks like the mischievous type who may engage in risky behaviour down the road, you may want to consider opening an RDSP as soon as possible.

Adulthood – it’s closer than you think.