Universal Music Group has extended the contract of its CEO and Chairman Sir Lucian Grainge until May 1, 2028.
As part of the extended agreement, Grainge will move from an all-cash compensation package to a combination of equity and cash, with the majority paid in UMG equity and UMG performance-based stock options. His annual salary will be cut to $5 million, a reduction of more than two-thirds of his currency salary.
However, Grainge will also be eligible for an annual bonus of $10 million and the equity portion of his compensation package includes annual grants of $20 million. He will also receive a one-time transition award of $100 million, with half coming from restricted stock units and the other half coming from performance stock options, which will be paid out if the company’s stock hits a certain threshold by the end of his employment agreement.
“UMG is the world´s most successful music company and there are incredible opportunities ahead for a company with the right leadership and vision,” said Sherry Lansing, UMG´s Chairman of the Board. “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.”
The board will also put forward a proposal to reappoint Grainge as the company’s executive director for a term ending on May 1, 2028.
Grainge has been CEO and chairman of the company since 2011.
