Obscene Warner Music Executive Payouts

Written by Ritch Esra


In these times of major label mergers, downsizing,repparttar slashing of label rosters, and thousands of record company jobs being lost overrepparttar 109829 last three years--not to mentionrepparttar 109830 enormous sea change and seismic shifts that technology has wrought--comes one ofrepparttar 109831 most disturbing reports we have come across. It further reveals just how profoundly out-of-touch certain companies TRULY are when addressingrepparttar 109832 problems within their own record divisions.

The Financial Times reported 'Warner Music paid its top five executives more than $21m in salary and bonuses following last year's $2.6bn acquisition ofrepparttar 109833 US music group by a private equity consortium.' The article points out that Edgar Bronfman Jr,repparttar 109834 Chairman who led last year's buy-out, received a $1M salary and $5.25M bonus. Lyor Cohen, head ofrepparttar 109835 US recorded music business, received $1M and $5.24M in salary and bonus, respectively. Paul Rene Albertini, head of Warner's international operations, was paid $1.25M in salary and a $3.15M bonus. Departing Warner/Chappell CEO, Les Bider, received a $2.44M total payment.

These payouts include further guaranteed bonuses or change of control payments. According to documents filed withrepparttar 109836 U.S. Securities and Exchange Commission, last year's total executive remuneration was more than three times higher than Warner Music's $7M operating income forrepparttar 109837 10 months to September 30th. The management payments reflect Warner's success in cutting costs following last year's sale ofrepparttar 109838 Music Group by Time Warner. The company expects to deliver $250M of annualized savings by May this year, achieved mainly through 1,600 job losses.

What is so truly disturbing here is that it speaks volumes aboutrepparttar 109839 value system of an owner of a company that would pay its top-five Record Executives more than three timesrepparttar 109840 amount of operating income for a ten-month period while dismissing 1,600 employees.

Whatrepparttar 109841 article failed to mention was that in addition torepparttar 109842 employee layoffs, Warner Music Group also dropped 93 ofrepparttar 109843 193 artists signed to Warner Labels inrepparttar 109844 US, approximately 47% ofrepparttar 109845 artist roster during this same period. Ifrepparttar 109846 financial health of a company is truly so dire that it calls for these kind of dramatic and severe cuts forrepparttar 109847 financial well being ofrepparttar 109848 company, how does one justifyrepparttar 109849 kind of staggering bonus payouts torepparttar 109850 top five executives inrepparttar 109851 company? Don't get us wrong, we have no problem with executive compensation when it's tied to actually rewarding performance, but in this case, one is truly hard pressed to grasp or to understand what is actually being rewarded. The claim thatrepparttar 109852 Warner Music Group will save $250M of annualized savings mainly throughrepparttar 109853 decimation of 1,600 jobs is not something that we think should be financially rewarded.

On Feb 11th atrepparttar 109854 Grammy Foundation Entertainment Law Initiative luncheon in Los Angeles, WMG Chairman Edgar Bronfman spoke torepparttar 109855 460 attendees ofrepparttar 109856 luncheon, "We must employ our creative imagination - and we must resistrepparttar 109857 temptation to conduct business as we always have - by experimenting with new approaches, new structures and new relationships, so that we can move more quickly and appropriately respond torepparttar 109858 ever-changing marketplace."

He went on to request that music attorneys bring a new level of creativity torepparttar 109859 deals they forge. "Your willingness to join with us is critical torepparttar 109860 success of our industry."

If only he had "resistedrepparttar 109861 temptation to conduct business like we always have" and not given so much to so few while so many went without. In business, as in life, you lead through example. Mr. Bronfman, with all due respect, you need to have to have your own house in order before you haverepparttar 109862 credibility to make a request like that torepparttar 109863 creative and legal communities.

In an open letter to Warner Music Chairman Edgar Bronfman, Carlos Anaia, a five-year Warner Music Group employee in London who was leavingrepparttar 109864 company wrote, "We understand that you took on a huge task to turn aroundrepparttar 109865 ailing, forgotten division of AOL Time Warner, but informingrepparttar 109866 already morale-drained staff (via a third party - The Financial Times) thatrepparttar 109867 salary and bonuses thatrepparttar 109868 top five executives took individually equal more than 20 times my total lifetime salaried income (assuming I started at 18 and retired at 60), is somewhat more than insensitive. If you want to make us feel like maggots, you succeeded. Paul-Rene Albertini gets paid $4 MILLION in total? Hello!!? The only deals we are all aware of have all LOST money. Walt Disney Records? It's still more than $15 million unrecouped. Milan Records? A French turkey. Need I go on? What deals has this guy done that actually MADE money?"

Throughout my own career inrepparttar 109869 music business, and especially inrepparttar 109870 last ten years, I've always been fascinated byrepparttar 109871 extremely disproportionate amount of money paid to CEOs inrepparttar 109872 Entertainment Business. Being inrepparttar 109873 music business for twenty-five years, we've seen Major Label CEO salaries/benefit packages go from $200,000.00 - $500,000.00 in salary and bonus payments inrepparttar 109874 mid 1980's to literally ten-times that amount, and more, just eight to nine years later forrepparttar 109875 same job.

Throughoutrepparttar 109876 1990's,repparttar 109877 amount of money and compensation paid to CEOs and other top executives at film studios and major labels continued to reach new levels of financial absurdity, especially inrepparttar 109878 area of severance packages (the part of their contract that kicks in if they are fired or "leaverepparttar 109879 company for any other reason"). You want to know how absurd it's gotten? It's torepparttar 109880 point now where if you really stop and think about it, there's no real incentive for CEO's to try and succeed anymore, other than ego (which we do not underestimate as an extremely powerful and driving force in this business).

Why? Because today, we live in an era where more often than not,repparttar 109881 consequences of failure for a CEO have become far too financially lucrative! If you don't believe me, look back overrepparttar 109882 last ten years and think about all ofrepparttar 109883 labels that have had regimen changes such as when EMI made Charles Koppelman CEO of its music division only to haverepparttar 109884 entire EMI label close down a few years later with over 135 employees losing their jobs (many with just a two week notice) while Koppelman exited with well over $30M along with other contractual compensation.

Consider alsorepparttar 109885 revolving door of CEOs appointed by Gerald Levin (then CEO of AOL Time Warner) to run Warner's music division inrepparttar 109886 mid 90's. Between 1994 and 1998, Warner hired, promoted and fired Doug Morris, Bob Morgado and Michael Fuchs to runrepparttar 109887 Music Division. Each outgoing executive cost them between $15M - $25M.

Jazz Great Miles Davis Home Town Finally Creates a Jazz Record Label…

Written by Ken Bleu Campbell


Jazz Great Miles Davis Home Town Finally Creates a Jazz Record Label…First Release May 19…Raw & Uncut… "East St. Louis Jazz Fromrepparttar Vault” Volume 2, 1989 – 1992, The Spirit of Miles Davis Back inrepparttar 109828 Atmosphere"… Some ofrepparttar 109829 Earliest Professional Recordings of Now - New millennium Jazz Lions on this Good Ground Records CD feature Two time Grammy Nominee, East St. Lousian, Russell Gunn on Trumpet with Bass man Steve Kirby's Jazz Septet andrepparttar 109830 groups winning songs that wonrepparttar 109831 $10,000 First Prize inrepparttar 109832 1992 Hennessey Cognac's Best Jazz Search Contest (See bio). With Willie Akins, Tenor Saxophone, Ken Bleu Campbell, Congas, Timbales, & Percussion, Rob Block, Guitar, Kim Portnoy, Piano, and Gary Sykes, Drums.

Also recorded live atrepparttar 109833 Historical Missouri Botanical Garden's First Annual Jazz in June Series 1993,repparttar 109834 Rob Block Latin Jazz Sextet Lay down some nice original Latin Jazz Songs… The Personnel for this set include Russell Gunn, Willie Akins, Ken Bleu Campbell, 1997 New York Best New Jazz Artist nominee Gregory Tardy, Tenor Saxophone, with Jaime Restrepo, Bass, Keyboard, Alex "Bo" Deal, Congas, with Mattheo Mulcahy & Dan Fermin adding percussion.

Cont'd on page 2 ==>
 
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