Putting his stamp on EMI Group, newly appointed CEO Roger Faxon is moving the company back to a strong centralized leadership and away from the so-called "matrix structure" which was organized around function and had been in place since Terra Firma remade the company in 2008. The changes were detailed in a six-page memo Faxon sent to EMI's staff Tuesday.

The New Structure
In moving EMI Group back to a more traditional structure, the company will be organized around three regional hubs, with Faxon taking personal command of the North American region. Colin Finkelstein will continue day-to-day responsibilities, but will shift from president of the North American region to COO, according to the memo.

The two other hubs -- Europe/the rest of the world and Latin America -- will be overseen by David Kassler and Nestor Casonu, respectively. Both have been named CEO of their respective regions.

In another move, EMI Music Publishing COO Leo Corbett has been promoted to that position for EMI Group, and is part of the company's CEO office. Faxon has also appointed Jim Brady to head up a new office of strategy management. He was previously an executive VP of IT for the company.

Werre, Gatfield, Mann Exit
As part of the makeover, some of the power players from the matrix structure are leaving the company. They include Ronn Werre, COO of North America and Mexico; Nick Gatfield, EMI's president of new music for North America, the UK and Ireland; and Billy Mann, president of new music-international and global artist management at EMI Music.

Those executives are leaving on the heels of Ernesto Schmitt, who was president of marketing and global catalog.

The 2008 restructuring also eliminated the label structure of Virgin, Capitol and Blue Note, and combined them into a centralized staff funneling music through those imprints. That structure appears to remain in place.

In noting the move away from the previous matrix structure, Faxon said, "While there is broad appreciation for the people and skills it has brought us, in trying to focus the business on the key business streams we seem to have created a confusing maze of accountabilities and responsibilities."

In the new structure, EMI appears to have eliminated the dotted line reporting, which had staffers reporting to two bosses simultaneously.

Instead, the company will have the regional hubs serviced by centralized functions: finance, led by EMI Music CFO Shane Naughton; legal/business affairs, led by general counsel Kyla Mullens; technology, led by Simon Hollins; supply chain and procurement, led by Gareth Thomas, who holds the title of president for that function; digital new business, led by executive VP of global business development Nark Piibe; human resources, led by president of human recourses Jenny Bryant; and artist relations, led by senior VP of global artist relations Caryn Tomlinson.

In making the changes, Faxon wrote: "EMI Music today still acts like a product company -- we gear ourselves up for product launches, and we get ourselves worked up about market share and units shipped and so on. But the market has moved on, we need to understand that we are not a product company at all -- we have to be a service company, and one that is obsessive about discovering great music (or rediscovering great music from our catalogue) and connecting it with an audience through every route available to us."

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