Report: Former EMI Finance Dir. Missed Out On Big Severance
September 25, 2007 at 5:45 AM (PT)
MARTIN STEWART, EMI’s former Finance Director, missed out on a payoff worth £1 million when he left the British music company after its £2.4 billion acquisition by TERRA FIRMA, reports THE TIMES OF LONDON. The fate of STEWART contrasts with that of ERIC NICOLI, his chief executive, who was entitled to an £2.8 million severance when his contract was terminated by GUY HANDS, TERRA FIRMA’s owner. Both left the company this month.
It is not clear why STEWART did not get any cash. EMI said that he had resigned and therefore was not entitled to a payout, whereas NICOLI was asked to leave. However, it is unusual for an executive who knows that he may be dismissed to risk losing the opportunity to receive severance.
STEWART earned £764,300 last year, which included a base salary of £551,200 and a £192,900 bonus. The company’s most recent annual report states that his contract could be terminated "on one-year’s notice," the only exceptions being resignation or "gross misconduct or other circumstances justifying summary dismissal."
STEWART joined EMI in JANUARY, 2005 and as recently as JANUARY of this year was given the task of restructuring the finances of the company’s struggling recorded music unit. He previously had held the same position at BSKYB, the satellite broadcaster 39.1% owned by NEWS CORPORATION, but left after he lost out in a battle with JAMES MURDOCH for the chief executive’s job.