A fixed amount of money will also be set up in case the Director is fired, which happens more than you would think. Many movies start off with one Director and then, when the studio starts reviewing the “dailies” (the footage shot each day), they may feel that the film isn’t turning out the way they envisioned it, and they decide they want to bring on someone new. Yes, there’s a certain irony to telling a Director you want to “go in a new direction…”
The real money for Directors comes with the “extras.” When a Director signs on to a movie, his agent will try to negotiate “net points” and “gross points.” The net points (not how much Deron Williams & Co. score on a given night) are practically worthless. Net points would, in theory, grant the recipient a share of a film’s profit after the studio has recouped all costs, only the studio never recoups all costs. It’s sorta like someone telling you that you can have their car for free as soon as it hits 400,000 miles. Gee, thanks.