Common Music Group‘s Board of Administrators has 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 underneath the brand new settlement might be decreased by greater than two-thirds from his present wage, to USD $5 million.

Topic to the achievement of efficiency standards, he may also 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 will solely obtain compensation primarily based on that construction till the top of this month (March).

The fairness element of Grainge’s new contract will embrace annual grants of $20 million, comprised of as a lot as 50% Efficiency Share Models (PSUs)— with annual PSU targets set by the UMG Board of Administrators — and the rest comprised of Restricted Share Models (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% might 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) inside the time period of the settlement ending Could 1, 2028.

“UMG is the world´s most profitable music firm and there are unimaginable alternatives forward for an organization with the fitting management and imaginative and prescient,” stated Sherry Lansing, UMG´s Chairman of the Board.

“The UMG Board is resolutely dedicated to changing these alternatives and maximizing shareholder worth for the long run. Solely the proper of chief govt may also help obtain that aim and Lucian is simply the one to do it. By his clear imaginative and prescient and robust execution in constructing UMG into the business chief, Lucian has additionally basically created a brand new class of music firm. This settlement is designed to drive each the sustainable success of UMG and long-term shareholder worth.”

UMG stated in an replace to traders: “To guarantee the compensation program is aligned with shareholders´ curiosity, the vast majority of [Grainge’s new] compensation bundle´s financial worth might be paid in UMG fairness and UMG performance-based inventory choices.”

At UMG’s Annual Basic Assembly in Could, UMG’s board will desk a proposal to reappoint Grainge as its Government Director (a place he holds along with being the corporate’s Chairman and CEO) for a time period ending on Could 1, 2028. The board may also search approval to regulate a coverage for Government Administrators with respect to Grainge´s new remuneration.

At that Basic Assembly, shareholders may also contemplate the proposed appointment of Haim Saban as UMG’s new Unbiased Non-Government Director for a two-year time period, in addition to the proposed re-appointment of Sherry Lansing, Anna Jones and Luc van Os as Non-Government Administrators for a two-year time periodMusic Enterprise Worldwide