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Thursday, September 28, 2023

Sir Lucian Grainge remuneration package approved by Universal Music Group shareholders

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At Common Music Group‘s Annual Basic Assembly on Thursday (Could 11), UMG’s Board tabled a proposal to reappoint Sir Lucian Grainge as its Government Director (a place he holds along with being the corporate’s Chairman and CEO) for a five-year time period (ending on Could 1, 2028).

The board additionally sought approval to regulate a coverage for Government Administrators with respect to a brand new remuneration bundle for Grainge.

Each resolutions have been adopted on Thursday.

Which means Sir Lucian Grainge has formally been re-appointed as UMG’s Government Director for 5 extra years, and it additionally implies that his new remuneration bundle has been authorized by shareholders, too.

Elsewhere at Thursday’s AGM, shareholders additionally re-appointed Sherry Lansing and Luc van Os as Non-Government Administrators.

In the meantime, media mogul Haim Saban was appointed as UMG’s new Unbiased Non-Government Director for a two-year time period.

On the finish of March, we reported that Common Music Group’s Board of Administrators had prolonged the contract of Sir Lucian Grange to stay the corporate’s Chairman and Chief Government Officer till Could 1, 2028.

Grainge’s new five-year deal mixes collectively parts of money and equity-based compensation (his earlier deal was a cash-only bundle).

Grainge´s annual wage below the brand new settlement will probably be diminished by greater than two-thirds from his present wage, to USD $5 million.

Topic to the achievement of efficiency standards, he can 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 solely obtained compensation based mostly on that construction till the top of March).

The fairness part of Grainge’s new contract will embody annual grants of $20 million, comprised of as a lot as 50% Efficiency Share Items (PSUs)— with annual PSU objectives set by the UMG Board of Administrators — and the rest comprised of Restricted Share Items (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% will probably 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 Could 1, 2028.

UMG mentioned in an replace to buyers in March: “To guarantee the compensation program is aligned with shareholders´ curiosity, nearly all of [Grainge’s new] compensation bundle´s financial worth will probably be paid in UMG fairness and UMG performance-based inventory choices.”

UMG instructed shareholders in its 2023 AGM agenda: “The Board considers it within the pursuits of the Firm and its stakeholders to retain and safe Sir Lucian Grainge because the Firm’s Chairman and CEO.

“Sir Lucian Grainge has a novel place within the music trade and has a longstanding relationship with and data of UMG and its enterprise.

“The Board considers Sir Lucian Grainge to be finest geared up to guide UMG for the approaching years because the Board is dedicated to changing UMG’s enterprise alternatives and maximizing UMG’s long-term sustainable success and shareholder worth.

“Solely the correct of CEO will help obtain that objective and Sir Lucian Grainge is the particular person to try this. Via his clear imaginative and prescient and powerful execution, Sir Lucian Grainge has not solely constructed UMG as an trade chief, however he has primarily created a brand new class of music firm.”

It added: “Sir Lucian Grainge, 63, has spent his total profession within the music trade and has signed and labored with many worldwide stars. Over the span of 4 a long time, he has not solely pioneered new approaches to the signing and growth of the world’s most profitable recording artists and songwriters however he has constantly championed the event of progressive enterprise fashions and partnerships with a variety of expertise and media companions world wide.

“He has reworked UMG into probably the most profitable firm within the historical past of the music trade, each competitively and financially, and his imaginative and prescient and management is widely known.”Music Enterprise Worldwide

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