Special message to Warner Music Group (NYSE: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.