AT Universal Music GroupAt the Annual General Meeting on Thursday May 11, UMG’s Board of Directors tabled a proposal to renew the term of office Sir Lucian Grainge as Executive Director (a position he holds in addition to being Chairman and Chief Executive Officer of the Company) for a five-year term (ending May 1, 2028).
The board also sought approval to adjust a policy for executive directors in relation to a new compensation package for Grainge.
Both resolutions were adopted on Thursday.
This means that Sir Lucian Grainge has been officially reappointed as UMG’s chief executive for another five years, and it also means that his new remuneration has also been approved by shareholders.
Elsewhere at Thursday’s general meeting, shareholders also reappointed Sherry Lansing and Luc van Os as non-executive directors.
Meanwhile, the media mogul Haim Saban was appointed as a new independent non-executive director of UMG for a two-year term.
At the end of March, we reported that the board of directors of Universal Music Group had extended the contract of Sir Lucian Grange to remain chairman and chief executive of the company until May 1, 2028.
Grainge’s new five-year deal combines elements of cash and equity compensation (his previous deal was a cash-only package).
Grainge’s annual salary under the new deal will be cut by more than two-thirds from his current salary of US$5 million.
Subject to the achievement of performance criteria, he will also be eligible for an annual bonus with a target of $10 million.
The earnings-related bonus (EBITA) structure from his previous employment contract was removed (Grainge only received compensation based on this structure until the end of March).
The equity component of Grainge’s new contract will include annual awards of $20 million, including up to 50% performance share units (PSUs) – with annual PSU targets set by the Board of Directors. administration of UMG – and the remainder comprised of restricted stock units (RSUs).
As part of its long-term incentive plan, Grainge will receive a one-time transition stock award of $100 million, 50% in the form of PSUs and 50% in the form of stock options performance (OSP).
OSPs will only be paid out if Universal breaks the stock price hurdles (1/3 at €26.50, another 1/3 at €30.00 and 1/3 at €38.00) during the term of the OSP. agreement ending May 1, 2028.
UMG said in an update to investors in March: “To ensure that the compensation program is aligned with the interests of shareholders, the majority of [Grainge’s new] the economic value of the total compensation will be paid in UMG shares and performance-based UMG stock options.
UMG told shareholders in its agenda for the 2023 AGM: “The Board considers that it is in the interest of the Company and its stakeholders to retain and secure Sir Lucian Grainge as Chairman and Chief Executive Officer. General of the Company.
“Sir Lucian Grainge holds a unique position in the music industry and has a long-standing relationship with UMG and its business.
“The Board considers that Sir Lucian Grainge is best equipped to lead UMG in the years to come, as the Board is committed to converting UMG’s business opportunities and maximizing UMG’s sustainable success and shareholder value through long term.
“Only the right kind of CEO can help achieve this goal and Sir Lucian Grainge is the person to do it. Through his clear vision and strong execution, Sir Lucian Grainge has not only made UMG a leader in the industry, but it essentially created a new class of music business.
He added: “Sir Lucian Grainge, 63, has spent his entire career in the music industry and has signed and worked with many global stars. Over four decades he has not only pioneered new approaches to signing and developing the world’s most successful artists and songwriters, but he has always championed the development of innovative business models and partnerships with a wide range of technology and media partners around the world.
“He transformed UMG into the most successful company in the history of the music industry, both competitively and financially, and his vision and leadership are widely recognized.”The music industry around the world