screenwriters = goldman sachs shareholders

I was aware of this (what I personally would call criminal, regardless of how legal) behaviour, but doesn't it go further? Please correct me if I'm wrong...

This is why big stars and directors demand a percentage of gross - because the companies have more trouble hiding that figure.

However in the real world *no* sane company would ever offer percentage of gross because that way lies bankruptcy.

So the Hollywood finance machine, by being deliberately "criminal" is actually condemning itself to a death.

Or so it seems to me.

The only reason they got away with it was because they owned the distribution as well. And that's changing.

@Adaddinsane: Re your comment about distribution, I have an interesting article no changes on that front, following up on the recent AMC & Regal agreement.

percentage of gross, in the real world, might be called Year End Bonus.

is it criminal? they're running the show. they assume the financial risk

amending my comments above:
screenwriters are more like the guys who develop the financial instruments. the quants. not shareholders.

All that and you don't even get a mention at the Oscars!

Put that in writing.

Have there been any situations where first time screenwriters have been able to earn gross points on their original spec?

@Jason: Not to my knowledge, although if a studio wanted a script badly enough and there was a bidding war, it's not out of the question.