Common Music Group‘s Board of Administrators has prolonged the contract of Sir Lucian Grange to stay the corporate’s Chairman and Chief Government Officer till Might 1, 2028.
Grainge’s new five-year deal mixes collectively elements of money and equity-based compensation (his earlier deal was a cash-only package deal).
Grainge´s annual wage beneath the brand new settlement might be lowered by greater than two-thirds from his present wage, to USD $5 million.
Topic to the achievement of efficiency standards, he may even be eligible for an annual bonus with a goal of $10 million.
The revenue (EBITA)-related bonus construction from his prior employment settlement has been eradicated; Grainge will solely obtain compensation primarily based on that construction till the top of this month (March).
The fairness part of Grainge’s new contract will embrace annual grants of $20 million, comprised of as a lot as 50% Efficiency Share Models (PSUs)— with annual PSU objectives set by the UMG Board of Administrators — and the rest comprised of Restricted Share Models (RSUs).
As a part of his Lengthy-Time period Incentive Plan, Grainge will obtain a one-time transition fairness award of $100 million, of which 50% might be within the type of RSUs and 50% within the type of Efficiency Inventory Choices (PSOs).
The PSOs will solely be paid out if Common surpasses inventory worth hurdles (1/third at €26.50, one other 1/third at €30.00 and 1/third at €38.00) throughout the time period of the settlement ending Might 1, 2028.
“UMG is the world´s most profitable music firm and there are unbelievable alternatives forward for an organization with the correct management and imaginative and prescient,” mentioned Sherry Lansing, UMG´s Chairman of the Board.
“The UMG Board is resolutely dedicated to changing these alternatives and maximizing shareholder worth for the long run. Solely the proper of chief govt can assist obtain that purpose and Lucian is simply the one to do it. Via his clear imaginative and prescient and powerful execution in constructing UMG into the trade chief, Lucian has additionally primarily created a brand new class of music firm. This settlement is designed to drive each the sustainable success of UMG and long-term shareholder worth.”
UMG mentioned in an replace to buyers: “To guarantee the compensation program is aligned with shareholders´ curiosity, the vast majority of [Grainge’s new] compensation package deal´s financial worth might be paid in UMG fairness and UMG performance-based inventory choices.”
At UMG’s Annual Common Assembly in Might, UMG’s board will desk a proposal to reappoint Grainge as its Government Director (a place he holds along with being the corporate’s Chairman and CEO) for a time period ending on Might 1, 2028. The board may even search approval to regulate a coverage for Government Administrators with respect to Grainge´s new remuneration.
At that Common Assembly, shareholders may even think about the proposed appointment of Haim Saban as UMG’s new Impartial Non-Government Director for a two-year time period, in addition to the proposed re-appointment of Sherry Lansing, Anna Jones and Luc van Os as Non-Government Administrators for a two-year time periodMusic Enterprise Worldwide
