BigChampagne's Ultimate Chart (a/o February 10th):
1. “What Doesn't Kill You (Stronger),” Kelly Clarkson
2. “Set Fire to the Rain,” Adele
3. “Turn Me On,” David Guetta
4. “Rack City,” TYGA
5. “Good Feeling,” Flo Rida
6. “Smooth Criminal (Glee Cast Version),” Glee Cast
7. “Young, Wild & Free,” Snoop Dogg & Wiz Khalifa
8. “Domino ,” Jessie J
9. “Sexy and I Know It,” LMFAO
10. “Ass Back Home ,” Gym Class Heroes
WMG is wallowing on Wall Street, and valuations appear headed towards the gutter. Is this a good time to sell?
Just recently, Warner Music Group vice president of Strategy and Operations Michael Fleischer dumped 25,000 shares at $2.90, yielding a topline, pre-tax payout of $72,500. The divestiture potentially offers some asset diversification, though the depressed cashout stirs ongoing issues related to executive confidence.
Just recently, Fleischer was re-upped at Warner Music Group at an annual base salary of $825,000, plus a $1.1 million target bonus, according to September regulatory filings. That package includes options to purchase 450,000 shares of common stock at a strike price of $2.77, and another 450,000 performance-based shares tied to improved stock price milestones (of $10, $13, $17, and $20). In 2007, Fleischer banked $3.2 million, also based on compensation specifics contained within regulatory filings.
That casts the recent divestiture in a curious light. "Dumping shares for $72,000 pre-tax is a little fishy," one knowledgeable executive told Digital Music News, while predicting lower valuations ahead. "Fleischer is very close to the action, he may be telling us something" the source surmised.
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