At the top of every major label lies various profit driven capitalists. Each major label has a board of shareholders (usually aged 45+) who they have to answer to.
You see, even with Warner Music Group being $2 billion in debt and having to cut 100’s of jobs, the top executives will still find a way to go to Cancun 3 times a year on “business trips” and make sure they get their bonuses and pay raises.
Maybe Warner should try to reduce the amount they spend on lobbying & political contributions as a starter.
From Lyor Cohen’s (Warner Music Group CEO) latest interview with Billboard Magazine,
Cohen said combining intense attention to artist development with 360 deals is necessary to succeed — and sustain the salaries of a company’s top-notch staff
Since when has this been justification to offer 360 Deals? To not only restrict the freedom of an artist to do endorsements with whichever company they choose, but also restrict the terms and conditions of the deal?
It’s also startling because he goes on to explain that artists with 360 deals still have to recoup! Yes, you heard it correctly.
Cohen also goes on to talk about reducing the rosters of major labels, however during his previous reign at Def Jam and Warner, both labels were notorious for having signed so many artists, many of whom never saw any release dates and were later dropped.
In the past 12 months Warner have signed Currensy, Donnis, XV, Pill, Teedra Moses, Meek Mill, Wale, Wiz Khalifa, Diggy Simmons, Mac Miller, Stalley – just to name a few. Not to mention his alleged bidding war for Rick Ross’ Maybach Music Group.
None of these artists have released an album on the label since signing (with the exception of Wiz Khalifa). Is there enough staff to give each artist the attention they need for their projects? Is there even a release date for their project?
Warner Music Group is $2 billion in debt, yet in 2008 Cohen was given a pay rise of $1.5 million, a bonus of $ 5 million, complete with 1.5 million stock options & 1.75 million performance related shares of Warner Music Group. If terminated, he receives $8 million in compensation. Isn’t this a huge conflict of interest? Why are they being rewarded for poor financial performance? Why are $ 5 million bonuses being handed out when a business is $2 billion in debt?