Shock as EMI boss gets pounds 12m payoff

JIM FIFIELD, the head of EMI's music division, is this week set to receive the biggest golden goodbye in British corporate history when he collects up to pounds 12m following a row with fellow directors.

News of the pay-off came as Barclays Bank prepared to tell shareholders of a pounds 5m pay and compensation package for Bill Harrison, who quit as chief executive of Barclays' investment banking offshoot after just 13 months in the job.

Details of these record executive compensation packages are bound to re-ignite the confrontation between shareholders and board members over excessive pay. Barclays is expected to tell shareholders of the pounds 5m package for Mr Harrison in its annual report, due to be published on Wednesday.

Mr Fifield, who is known in the City as "Lucky Jim" for his sky-high rewards, was being groomed to take up the post of group chief executive of EMI, a new position set up with him in mind, after 10 years at the helm of the music division.

However, non-executives last month opposed his appointment after Mr Fifield allegedly demanded total control of the business and a compensation package worth pounds 10m a year. Mr Fifield's demands were rejected, and he has been expected to quit ever since.

Mr Fifield, who has worked for EMI since 1988, has collected more than pounds 34m in the last five years. An American with three children who travels constantly, he previously worked for CBS/Fox and General Mills, the food group.

Much of his compensation is performance-related. EMI's profits are now 10 times their level when he arrived. In the last decade EMI has acquired Virgin Records and signed lucrative acts such as Blur and the Spice Girls.

EMI is expected to justify the package by pointing to savings which the company will enjoy when it closes Mr Fifield's New York office, which costs more than pounds 10m a year to run.

Sir Colin Southgate, chairman of EMI, who is believed to have had a strained relationship with "Lucky Jim" recently, has now scrapped the plan for a group chief executive, according to sources close to the company.

Instead, the position will be split between Ken Berry, head of EMI's record label business, and Martin Bandier, head of music publishing. Sir Colin will remain as executive chairman. Previously he was to have taken a more back-seat role as non-executive chairman.

The Barclays annual report is expected to reveal that Bill Harrison received total pay for his brief spell at BZW of around pounds 5m. He joined in September 1996 with a mandate to build the Barclays subsidiary into a global business but resigned in October last year after Barclays reversed its strategy.

Barclays' annual report is expected to show that Mr Harrison was paid salary and benefits of more than pounds 1m in the nine months between January and October last year. In 1996, he earned pounds 2.85m in salary and bonuses. Part of his compensation package was designed to compensate him for bonuses forgone when he left Robert Fleming, where he was head of investment banking.

He is also known to have been given 133,000 share options which can be exercised at pounds 9.07p each. With the share price standing at over pounds 18, his options are likely to be worth more than pounds 1m. He is also understood to have earned a further pounds 150,000 from another executive reward scheme in 1996. In total this adds up to pounds 5m.

Nicknamed "Attila the Brum" for his belligerent approach and West Midlands background, he was hired at least partly because of a reputation for driving companies ahead and motivating employees.

However, staff at BZW became concerned when Mr Harrison set about firing bankers and bringing in new staff from rival investment banks.

PROMOTED VIDEO
Life and Style
fashionHealth concerns and 'pornified' perceptions have made women more conscious at the beach
Arts and Entertainment
tv
Sport
Ojo Onaolapo celebrates winning the bronze medal
commonwealth games
Arts and Entertainment
Rock band Led Zeppelin in the early 1970s
musicLed Zeppelin to release alternative Stairway To Heaven after 43 years
Arts and Entertainment
High-flyer: Chris Pratt in 'Guardians of the Galaxy'
filmHe was homeless in Hawaii when he got his big break. Now the comic actor Chris Pratt is Hollywood's new favourite action star
Sport
Van Gaal said that his challenge in taking over Bobby Robson's Barcelona team in 1993 has been easier than the task of resurrecting the current United side
footballA colourful discussion on tactics, the merits of the English footballer and rebuilding Manchester United
Life and Style
Sainsbury's could roll the lorries out across its whole fleet if they are successful
tech
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Travel
The shipping news: a typical Snoozebox construction
travelSpending the night in a shipping container doesn't sound appealing, but mobile crash pads are popping up at the summer's biggest events
Arts and Entertainment
'Old Fashioned' will be a different kind of love story to '50 Shades'
film
Arts and Entertainment
Tracey Emin's 'My Bed' is returning to the Tate more than 15 years after it first caused shockwaves at the gallery
artTracey Emin's bed returns to the Tate after record sale
Arts and Entertainment
Smart mover: Peter Bazalgette
filmHow live cinema screenings can boost arts audiences
Environment
Neil Young performing at Hyde Park, London, earlier this month
environment
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Project Manager (HR)- Bristol - Upto £400 p/day

£350 - £400 per annum + competitive: Orgtel: Project Manager (specializing in ...

Graduate / Trainee Recruitment Consultant - IT

£25000 per annum + OTE £40,000: SThree: Orgtel are seeking Graduate Trainee Re...

HR Business Partner - Banking Finance - Brentwood - £45K

£45000 per annum + Benefits: Ashdown Group: ** HR Business Partner - Senior H...

PA / Team Secretary - Wimbledon

£28000 - £32000 per annum + Benefits: Ashdown Group: PA / Team Secretary - Mat...

Day In a Page

Save the tiger: The animals bred for bones on China’s tiger farms

The animals bred for bones on China’s tiger farms

The big cats kept in captivity to perform for paying audiences and then, when dead, their bodies used to fortify wine
A former custard factory, a Midlands bog and a Leeds cemetery all included in top 50 hidden spots in the UK

A former custard factory, a Midlands bog and a Leeds cemetery

Introducing the top 50 hidden spots in Britain
Ebola epidemic: Plagued by fear

Ebola epidemic: Plagued by fear

How a disease that has claimed fewer than 2,000 victims in its history has earned a place in the darkest corner of the public's imagination
Chris Pratt: From 'Parks and Recreation' to 'Guardians of the Galaxy'

From 'Parks and Recreation' to 'Guardians of the Galaxy'

He was homeless in Hawaii when he got his big break. Now the comic actor Chris Pratt is Hollywood's new favourite action star
How live cinema screenings can boost arts audiences

How live cinema screenings can boost arts audiences

Broadcasting plays and exhibitions to cinemas is a sure-fire box office smash
Shipping container hotels: Pop-up hotels filling a niche

Pop-up hotels filling a niche

Spending the night in a shipping container doesn't sound appealing, but these mobile crash pads are popping up at the summer's biggest events
Native American headdresses are not fashion accessories

Feather dust-up

A Canadian festival has banned Native American headwear. Haven't we been here before?
Boris Johnson's war on diesel

Boris Johnson's war on diesel

11m cars here run on diesel. It's seen as a greener alternative to unleaded petrol. So why is London's mayor on a crusade against the black pump?
5 best waterproof cameras

Splash and flash: 5 best waterproof cameras

Don't let water stop you taking snaps with one of these machines that will take you from the sand to meters deep
Louis van Gaal interview: Manchester United manager discusses tactics and rebuilding after the David Moyes era

Louis van Gaal interview

Manchester United manager discusses tactics and rebuilding after the David Moyes era
Will Gore: The goodwill shown by fans towards Alastair Cook will evaporate rapidly if India win the series

Will Gore: Outside Edge

The goodwill shown by fans towards Alastair Cook will evaporate rapidly if India win the series
The children were playing in the street with toy guns. The air strikes were tragically real

The air strikes were tragically real

The children were playing in the street with toy guns
Boozy, ignorant, intolerant, but very polite – The British, as others see us

Britain as others see us

Boozy, ignorant, intolerant, but very polite
How did our legends really begin?

How did our legends really begin?

Applying the theory of evolution to the world's many mythologies
Watch out: Lambrusco is back on the menu

Lambrusco is back on the menu

Naff Seventies corner-shop staple is this year's Aperol Spritz