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Two Top Sony BMG Executives Step Down

June 02, 2006|Charles Duhigg, Times Staff Writer

Only months after resolving a bitter battle over the company's top executive slot, Sony BMG Music Entertainment announced Thursday the departure of two of its senior-most executives.

Don Ienner, an 18-year veteran of the company, stepped down as chairman of Sony Music Label Group U.S. less than three months after being promoted to the position.


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Michele Anthony, who joined Sony Music in 1990, resigned as president and chief operating officer.

Company insiders said the two were forced out.

Neither Ienner nor Anthony returned calls seeking comment. Sony BMG declined to comment beyond a news release announcing the resignations.

The departures are the latest management realignment to rock Sony BMG, the world's second-largest music company and a joint venture of Japan's Sony Corp. and Germany's Bertelsmann.

In February, Sony BMG named a new chief executive, Rolf Schmidt-Holtz, who had been serving as a Bertelsmann director. He stepped in after the Bertelsmann board forced his predecessor, Sony-affiliated Andrew Lack, into the less-powerful chairman's position.

One of Schmidt-Holtz's first decisions was to promote Ienner -- a move some insiders speculated was designed to show Schmidt-Holtz's new boss, Sony Corp. Chief Executive Howard Stringer, that Sony Music executives wouldn't be sidelined. But sources said it wasn't long before Schmidt-Holtz and Ienner clashed over issues of leadership, strategy and business practices.

Thursday's announcement that Ienner would be leaving and that he would be replaced by Stringer's brother, Rob, are seen as a consolidation of Schmidt-Holtz's authority and an attempt to unite what are now sharply divided Sony and Bertelsmann camps. Rob Stringer is a 20-year veteran of Sony Music and current head of Sony BMG's British and Irish divisions.

Ienner was the focus of a Los Angeles Times article last year about a regulatory probe that concluded that some Sony Music executives had been involved in pay-for-play scams that exchanged cash and gifts for radio airplay of particular artists.

Sony Music includes Columbia Records Group, Epic Records and Sony Urban Music and is home to such artists as Beyonce, Jennifer Lopez and Three 6 Mafia.

Sony Music, once one of the industry's strongest labels, had only two albums among this week's 10 bestsellers and one album in last year's top 20 sellers. A recent Sony Music release by Bruce Springsteen failed to sell well.

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