As Warner Music Sinks Executives Take Millions

March 22, 2008

Edgar Bronfman jr.

Today, Warner Music Group’s stock closed at $4.95. Roughly a year ago, before the boycott of their company/stock I requested on the site, due to the criminal copyright infringement and human rights abuses that occurred in this case, their stock value was $27 per share.

You would think with plummeting revenues and free falling stock, they’d tighten their belts. Of course not – this is Warner Bros. – the den of thieves.

Warner Music’s Main Offender Mad-onna

Warner Music CEO, Edgar Bronfman jr, and his VP Lyor Cohen, have rewarded their failures with salary increases. Instead of showing some humility in the face of the things they’ve done and attempting to correct said unlawful and unethical behavior, they’ve decided on lining their pockets with money from the sinking ship and stealing some more copyrights for Madonna’s forthcoming CD “Hard Candy” which I am asking you to boycott.

Here’s to your indictments, and mark my words, you will be indicted.

Special message to Warner Music Group (WMG) holders: time to complain.

Richard Greenfield, an analyst at Pali Research, notes that Warner today unveiled a huge new pay package for Chairman and CEO Lyor Cohen; this for a company which has seen its shares drop 70% over the last year.

Old contract: $1.5 million base salary, $2.5 million target bonus, with a maximum of $4 million and no minimum specified, with $4 million payable if terminated.

New contract: $3.0 million base, $2.5 million target bonus, with a maximum of $5 million and minimum of $1.5 million, with $8.5 million payable if terminated.

Nice raise! Imagine if the stock had been flat, and the company hadn’t lost several billion in market cap.

Greenfield wants to know, “Where is the corporate governance?” He suggests investors complain to the company’s board. http://blogs.barrons.com

Story found here

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