The British file label mogul, Sir Lucian Grainge, is on monitor for one of many greatest government payouts in company historical past when Universal Music makes its stock market debut subsequent week with a package deal of money bonuses value greater than $170m (£123m).
Sir Lucian, the chairman and chief government of Universal, who practically died of coronavirus final year, is because of obtain the money when the world’s largest file label is admitted to the Amsterdam stock trade.
The determine relies on a calculation disclosed to traders in the prospectus on Tuesday. Sir Lucian’s payout will likely be composed of a “transaction bonus” of at the least $150m, assuming Universal achieves analyst expectations of a debut valuation of greater than $40bn.
On prime of that he’ll obtain a fee of greater than $20m in relation to the sale of a 10pc minority stake in the file label to the Chinese tech big Tencent final year.
The whole is more likely to be considerably increased than $170m, as Sir Lucian may even obtain a bonus in relation to the latest sale of one other 10pc stake in Universal to Pershing Square, the fund run by the activist investor Bill Ackman. The prospectus didn’t disclose that determine, nevertheless.
All of the bonuses are as a result of be paid by the French media big Vivendi, which has owned Universal Music since 2000.
The billionaire industrialist Vincent Bollore seized management of Vivendi in 2013 and is now cashing in on the profitable reconstruction of the music business for the streaming period.
Sir Lucian, who was born in London, is broadly credited as a number one architect of the brand new business. He was behind pioneering licensing offers that offered the foundations for Spotify and later wager on the enduring worth of hit data.