Report: UMG's Sir Lucian Grainge Has Contract Extended For Five Years 

Sir Lucian Grainge (Photo: Photowork / Shutterstock.com)

UNIVERSAL MUSIC GROUP's Board Of Directors extended the contract of SIR LUCIAN GRAINGE for five years to remain Chairman/CEO until MAY 1st, 2028. His new five-year deal mixes together components of cash and equity-based compensation (his previous deal was reportedly cash-only package) with his current annual salary of $5 million reduced by two-thirds, according to MUSIC BUSINESS WORLDWIDE.

Subject to performance incentives, he will also be eligible for an annual bonus with a target of $10 million.

The equity component of his new contract will include annual grants of $20 million, comprised of as much as 50% Performance Share Units (PSUs)— with annual PSU goals set by the UMG Board Of Directors — and the remainder comprised of Restricted Share Units (RSUs).

GRAINGE will receive a one-time transition equity award of $100 million, of which 50% will be in the form of RSUs and 50% in the form of Performance Stock Options (PSOs).

The PSOs will only be paid out if UNIVERSAL surpasses stock price hurdles within the term of the agreement.

Said UMG Chairman Of The Board SHERRY LANSING, “UMG is the world´s most successful music company and there are incredible opportunities ahead for a company with the right leadership and vision.

“The UMG Board is resolutely committed to converting those opportunities and maximizing shareholder value for the long term. Only the right kind of chief executive can help achieve that goal and LUCIAN is just the one to do it. Through his clear vision and strong execution in building UMG into the industry leader, LUCIAN has also essentially created a new category of music company. This agreement is designed to drive both the sustainable success of UMG and long-term shareholder value.”

At UMG’s Annual General Meeting in MAY, UMG’s board will table a proposal to reappoint Grainge as its Executive Director (a position he holds in addition to being the company’s Chairman and CEO) for a term ending on MAY 1st, 2028. The board will also seek approval to adjust a policy for Executive Directors with respect to Grainge´s new remuneration.

Shareholders will also consider the proposed appointment of HAIM SABAN as UMG’s new Independent Non-Executive Director for a two-year term, as well as the proposed re-appointment of LANSING, ANNA JONES and LUC VAN OS as Non-Executive Directors for a two-year term

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