EMI Boots CEO Alain Levy
EMI has booted Chairman and CEO Alain Levy and Vice Chairman David Munns from the firm and announced a massive restructuring following dismal yearly results. EMI Group Executive Chairman Eric Nicoli will take over as CEO, where he will “take direct responsibility for the management of EMI Music.”
As part of its announcement, EMI also projected a revenue drop of between 6 and 10 percent for the fiscal year ending March 31st. That caused a browning on the London Stock Exchange, where shares tanked in early trading. EMI also outlined significant reductions in both overhead and employees, and a major shift in overall strategy, which includes focusing on markets that can deliver more secure and steady revenue streams. Meanwhile, Levy is expected to leave with a nice golden parachute. According to a company filing, Levy will depart with a base salary of Â£1 million ($1.95 million), pension benefits totaling Â£550,000 ($1.07 million), and a bonus of Â£1.4 million ($2.73 million). (It’s good to be the King –Ed.) Levy also carries stock options that could push the total parachute past Â£7 million ($13.64 million). Overall, EMI pointed to annual savings of Â£110 million, or $214.4 million, though the one-time restructuring costs could top Â£150 million, or $292.4 million.