NEW YORK (Hypebot) — 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 gets 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.