As WMG Renews CEO’s Contract, Hypebot Issues $1 Challenge.
WMG RENEWS BRONFMAN THRU 2013
An SEC filing yesterday revealed that WMG has extend CEO Edgar Bronfman Jr.’s contract thru March 2013. His annual base salary is l"at least $1,000,000, subject to discretionary increases (and) a target bonus of 300% of base salary, with…a maximum of 600%." He also get 2,750,000 stock options and 2,750,000 performance-based restricted shares at the current $5.29 price.
Total compensation over 5 years should range from $5 million to as much as $35 million plus more than $30 million in options. Based on previous awards and targets, $15-$20 million over 5 years appears likely.
$15-$20 MILLION FOR WHAT?
Perhaps it takes multi-million dollar contracts to retain top executives. But don’t those executives have a responsibility to make shareholders money and lead the company forward?
Bronfman runs a faltering company in a battered industry. Under his leadership WMG has failed to be at the forefront of a single major industry initiative to reverse that trend. WMG was next to last on DRM-free, conceded the Madonna 360 battle to Live Nation and continues to rely on the leadership of last generation execs like Lyor Cohen. BullDog, Bronfman’s failed foray into high end concerts lost $18 million in a single year.
A $1 CHALLENGE TO LABEL EXECS
Apple’s Steve Jobs works for a base pay of just $1 per year. But stock options and bonuses awarded when the company soared have made him a very rich man.
Label executives are fond of telling us "its all about the music". It’s time they put their money where their mouths are.
I challenge Edgar Bronfman (whose family and previous deals have assured his personal fortune) and other major label execs to follow Steve Jobs’ example and re-set your base pay at $1. Come on Lyor, Doug and Jimmy. Come on Rick, Roger, Jason and a dozen more. You’ve made millions from music. Now give something back. I’ll even pay the dollar.
But, they still have Nickleback. Wait, someone screwed up with them and they’re free agents after the next album. D’oh!
Seriously though, I often wonder who you have to make a human sacrifice to as an entry to the world of top management. Regardless of industry, you can run a company into the ground and be absolutely incompetent and the worst that will happen is you get a huge pay off to leave where you are and, six months later, someone else is backing a dumptruck full of money up to your house to ruin…err…run their company. WTF?
Think employees will get a cost-of-living increase this year? I’ll wager not, but I hope I’m wrong.
Hearing about sweet exec deals like this make me beyond angry knowing the low salaries MOST record company employees make and forced to work in high-cost areas like southern California and NYC. Gas and food prices up, yet no raises.
Bronfman gets an outrageous deal for being outrageously incompetent at running a record company.
How’s those MVI’s selling?
Thank you for pointing out what should be painfully obvious to all those who work in the industry. If companies such as WMG and others are to have any chance of making future contributions to music whatsoever, they need to start with a commitment to sound business practices and appropriate compensation for the performance or non-performance of the executives in charge. From there they can work to repair the badly damaged trust between them and their most important clients – namely, the artists that make the gold they spin. Sad part is, most of these entities have yet to even recognize the artist as the client they must serve if they want a seat at the table – a table that is being set by a whole new group of players.
It’s the same ol same ol. Instead of putting money into new artist(s)and demanding that these legendary artists, mentor and help break new acts (as was the case is the days of Old when these Legends were just baby-bands)for the good of all, they (Label-Heads) just keep on taking and taking. The American Boss is a loser. Just look at our economy and the state of things. We are at an all-time low and we have flatlined.
As a indie producer/artist, I go all around America searching for new acts to help move them to the next level. I use live studio sessions, with help from known and unknown artists to get the recordings just right, and then we take those recordings, print them and go straight to indie-radio, the internet and the Road.
We then take these newly minted acts and the results to the majors for a possible signing, P&D,.ect.
I can tell you first hand, that it is both depressing and sad to see where the majors are at and what they can and won’t do. They have become tired, lazy, greedy, elites that just don’t care anymore. Now, they are all going down the tubes.
There’s no funds for promotion (the key to success) and it’s every man for himself. All we little guys can do is to keep touring the small towns, colleges, sell our wares out-of-the-truck, sell downloads, and play for anyone who will have us.
We can only hope and pray that some smart, daring music-loving investors and honest label types, from where-ever, will come and save the day. There really is some amazing music out there.
America is ripe for the taking. She needs a new direction. New Blood. A new mind-think. S.O.S..ya all!
PS> Will it come from the E.U.? England? Is that answer? Help!