Warner Music Group executive Lyor Cohen grabbed a handsome $6.8 million this week, thanks to a considerable cash-out of shares.
According to SEC filings, Cohen converted 800,000 shares at $8.45, yielding $6.76 million before taxes. Cohen, Chief Executive of Recorded Music for North America at Warner, recently overreached the annual payout of Chairman and Chief Executive Edgar Bronfman, Jr.
In a battle of bank accounts, Cohen is winning the game, though the elephantine compensation has been a concern for investors and potential partners. And the Warner stock remains at a depressed, sub-$10 valuation, a downer for anyone holding shares over the longer-term. “We believe the lack of independence on the compensation committee is a clear negative for public shareholders,” analyst Richard Greenfield noted in March.
Greenfield maintains a neutral rating on WMG, though Goldman Sachs analyst Ingrid Chung recently downgraded Warner to a sell rating.