Warner/Chappell Music: Cameron Strang signs new employment agreement

Dec 31, 2012 - Warner Music Group announced that Cameron Strang, Chairman and CEO of Warner/Chappell Music, signed a new employment agreement with the company.

Strang, who oversees Warner Bros. Records and Warner's West Coast operations as well as Warner/Chappell, will have a base salary of $2.25 million (effective January 1), raised from $1.5 million. He will also participate in Warner's senior management cash flow plan that will pay him a fixed allocation of 0.925% of the company's free cash flow. The plan will also allow Strang to acquire up to 0.4625% of deferred equity units (the right to receive a stock at a future date) and will grant him 0.4625% matching equity units.

Warner's senior management cash flow plan is a compensation plan adopted on December 10 that allocates 7.5% of free cash flow for an annual bonus plan for senior management. According to the company's latest 10-K filing, the plan is meant to help participating employees defer compensation to future years for tax and financial planning purposes.

In 2012 Strang earned $2.3 million in Warner's fiscal year (ended September 30). On top of his $1.5 million salary, he was given a discretionary bonus of $807,500, according to the 10-K filing.