In these times of major label mergers, downsizing, the slashing of label rosters, and thousands of record company jobs being lost over the last three years--not to mention the enormous sea change and seismic shifts that technology has wrought--comes one of the most disturbing reports we have come across. It further reveals just how profoundly out-of-touch certain companies TRULY are when addressing the 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 of the US music group by a private equity consortium.` The article points out that Edgar Bronfman Jr, the Chairman who led last year`s buy-outt, received a $1M salary and $5.25M bonus. Lyor Cohen, head of the 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.
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These payouts include further guaranteed bonuses or change of control payments. According to documents filed with the 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 for the 10 months to September 30th. The management payments reflect Warner`s success in cutting costs following last year`s sale of the Music Group by Time Warner. The company expects to deliver $250M of annualized savings by May this year, achieved mainly through 1,600 j
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