EMI Group has renewed its contract with the chairman of its recorded music division Alain Levy for an additional five years. Under the new contract, Levy's base salary has been upped to £1million
EMI Group has renewed its contract with the chairman of its recorded music division Alain Levy for an additional five years.
Levy's new contract took effect on April 1 of this year, but the information was only disclosed in the company's annual report released June 10. Levy's initial employment for EMI started on October 15, 2001, when he replaced the outgoing incumbent Ken Berry.
The London-based major company notes that "EMI's recorded music has performed exceptionally well relative to its competitors, reflecting not only his [Levy's] abilities as a music executive, but also his particular skills in managing a business sin adverse market conditions."
EMI specified that it can "terminate his employment contract at any time without notice." In its report, EMI says that Levy's remuneration package "has not proved to be competitive." At the time of his employment in 2001, Levy accepted "a base salary and potential cash bonus at levels lower than those for equivalent positions in other major record companies."
Under the new contract, Levy's base salary has been upped to £1million ($1.843 million) from £700,400 ($1.29 million) last year. Levy also has access to a bonus scheme, which provided him with additional revenues of £854,500 ($1.575 million) last year. His potential annual bonus has been increased from two times salary to three times salary.
The basis for Levy's bonus is, according to the report, mostly focused on operating profit margin, with a further incentive to drive sales out-performances. "The [remuneration] committee considers the retention and effective incentivisation of Mr Levy to be of the utmost importance to the company and its shareholders," EMI says.
Total remuneration-salary, benefits and incentives-for the company's chairman Eric Nicoli totalled £1.378 million ($2.539 million), with a salary base of £695,300 ($1.281 million). EMI Music Publishing chairman/CEO Martin Bandier received £3.318 million ($6.115 million), with a salary base of £1.819 million ($3.252 million). Roger Faxon, EMI Group's CFO, received £855,000 ($1.575 million) in total.