By Roman Wolfe
Warner Music Group has re-signed CEO Lyor Cohen to a five-year deal and promoted him to Chairman and CEO of Recorded Music.
The promotion, which doubles Cohen’s salary from $1.5 million dollars to $3 million dollars, is a step up from his previous title of CEO of Recorded Music for North America.
Additionally, Cohen is eligible for a bonus ranging from a minimum of $1.5 million dollars to $5 million dollars.
The raise drew scrutiny from stock research firm Pali Research and according to published reports, the company suggested that stockholders complain to the company’s board of directors.
In February, WMG reported a loss of $16 million dollars in the quarter that ended Dec. 31, after a profit of $18 million in the year-earlier period.
That same month, WMG Chairman and CEO Edgar Bronfman Jr. was named in a probe into insider trading and alleged wrongdoing at French media and telecom group Vivendi Universal.
French officials claim Bronfman is suspected of insider trading in connection with sales of Vivendi shares in January of 2000.
Despite the hardships, WMG continues to make strides in the digital arena.
On March, WMG announced a deal with Vodafone to release Madonna’s new album Hard Candy to Vodafone customers around the world, prior to the April 28th global release of the album.
Additionally, Flo Rida’s Poe Boy/Atlantic Records single "Low" spent 13 weeks at the top of the ringtone charts and set an all time single week record the week after Christmas, when digital sales for the track topped over 470,000 downloads.
WMG’s stock is currently trading at $4.95.