According to the British newspaper “The Guardian”, consultancy firm Glass Lewis said it had “severe reservations” about the decision by the world’s largest music company, whose catalog includes songs by stars such as Taylor Swift, Harry Styles and Coldplay, to pay the Grainge one bonus of 92 million euros based on shares to compensate for a salary reduction and loss of share value following the spin-off of UMG from Vivendi in 2021.
The bonus, which Glass Lewis considers to be an “excessive” payment, would be paid over five years based on profits and share price performance.
However, the consultancy firm, which advises investors to reject the proposal at Universal Music’s general meeting next Thursday, May 16, in Amsterdam, argues that the bonus “undermines the integrity of a company’s incentive system. company and questions whether the board is truly committed to creating a close link between pay and performance.”
The controversy comes after, last year, 40% of investors rejected the remuneration report and the additional single payment at the annual general meeting.
Between 2020 and 2022, Grainge received a total of around €138.5 million in salaries and other benefits, with his base salary being €13.6 million in 2020, €13.2 million in 2021 and €15.4 million in 2022. Additionally, according to Glass Lewis, Grainge “received three payments” totaling more than €258 million from Vivendi in 2021.
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