Elio Leoni-Sceti Out At EMI March 10, 2010
- Global
By Andre Paine, London
EMI Music CEO Elio Leoni-Sceti is leaving the major on March 31.
EMI issued a statement today (March 10) about his shock exit. The company said that Charles Allen has been appointed executive chairman.
Allen has been non-executive chairman of EMI Music since January 2009, chairing its board during the transformation of the business under Terra Firma.
In its statement, EMI said Leoni-Sceti had "successfully led EMI Music through the first phase of its operational turnaround."
Leoni-Sceti, previously a senior manager with household cleaning products firm Reckitt Benckiser, has only been at EMI 18 months. Last month he was asked by Guy Hands to draw up a new plan for the recorded music company, in order to persuade Terra Firma investors to inject up to £120 million ($179 million) of additional investment. But now he is out, it remains unclear if Allen will now lead that strategic plan.
"Over the past two and a half years [since Terra Firma's acquisition], EMI Music has become a stronger and growing company, with a talented senior team, significant creative success and a more rigorous approach to marketing and operations," the statement continued. "This has resulted in increased sales, improved market share and industry-leading EBITDA margins."
"Elio has done a great job," said Allen. "I have thoroughly enjoyed working with him; he is a very talented executive and we all wish him well in the future. Our goals for EMI Music remain the same. I will support and guide the group's strong team, keep EMI's focus on creativity and superb A&R, and deliver a digital platform. This is a great business - our task is to ensure it has a great future."
Leoni-Sceti added: "EMI is a wonderful business with a great team and new creative and operational momentum. My job here is now done and it is time for me to move on. It has been a pleasure to work with Charles and so many other talented and committed people. I look forward to seeing the company go on to further success in the future."
The London-based executive has been a familiar face at music events since his appointment, from a Katy Perry concert at Shepherds Bush Empire to the Barclaycard Mercury Prize ceremony, as well as hosting a Grammys party. There is no confirmation of a new role for him elsewhere.
Leoni-Sceti gave a Feb. 5 interview to Management Today (published Feb. 24), during which he said: "More money should be put in, because the investors are confident the business is strong enough. Should that not happen, then there will be issues of ownership. It's not an easy position to be in, of course."
He added that a team of 12 people were working on the plan for Hands.
"I'm confident the business plan we present will be a good plan," he said little more than a month before his departure was announced. "I can only do my job. I'm staying focused on delivering a vision for this business - I'm very dedicated to EMI."
Allen was previously executive chairman of U.K. TV company Granada from 2001 to 2004 and then chief executive of ITV from 2004 to 2007.
Reuters reported Feb. 25 that Peter Williams, who previously ran department store Selfridges, had been appointed to EMI investment vehicle Maltby Investments to act as an intermediary between Terra Firma and Citigroup. The private equity firm launched a lawsuit last year against Citigroup over the 2007 sale process of EMI.
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