Interesting quote from BMG chairman.

chas smith R.I.P. · Post by **chas smith R.I.P.** » 17 Mar 2002 8:23 pm

In today's business section there was a article on BMG (Bertelsmann Music Group) ranking 2nd in market share in the US.

After losing about $400 million last year due to political infighting and corporate arrogance, the CEO forced out the two top execs and installed Rolf Schmidt-Holz as Chairman to turn things around. (The severance packages for those two execs was in the $60 million range).

Schmidt-Holtz was quoted as saying "You know people talk about temperamental artists, but these are gifted individuals who create music. What do arrogant executives bring to the table? Nothing at all. In fact they destroy value. They open a company up to risk. And in the end, their bungling causes thousands of people to lose their jobs."

Paul Graupp · Post by **Paul Graupp** » 17 Mar 2002 9:56 pm

Caught me there for a minute, chas. BMG used to stand for an old publication on Banjo, Mandolin and Guitar !! The name Ben Franklin also rings a bell in this context but I can't be sure of that.

Regards, Paul

Bob Mainwaring · Post by **Bob Mainwaring** » 17 Mar 2002 11:49 pm

Hey Paul,
That was a fantastic magazine, when did it expire??

Bob Mainwaring. Z.Bs. and other weird things.

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Paul Graupp · Post by **Paul Graupp** » 18 Mar 2002 5:41 am

Bob: My only information about BMG was in a follow back of Fender/Fretts. As it had evolved and became the modern day follow up to BMG. I have never even seen one but also have never forgotten the title. Perhaps Jason Odd would have some info on it.....

Regards, Paul

Dave Van Allen · Post by **Dave Van Allen** » 18 Mar 2002 7:32 pm

back on topic...
I get the feeling this guy "talks a good game" but he wouldn't be in the position he is if the bottom line wasn't actually the top thing on his mind.

"stoking the star maker machinery behind the popular song" ain't what it used to be...and probably never was.

great quote though chas, thanks for sharing!

chas smith R.I.P. · Post by **chas smith R.I.P.** » 18 Mar 2002 10:11 pm

Dave, I don't know whether he's sincere or not, but I love hearing a good lie as much as the next guy. I've based relationships on less.

Tom Olson · Post by **Tom Olson** » 19 Mar 2002 7:39 pm

I'd be more inclined to believe what Schmidt-Holtz says is true on a general level than to believe he's blowing smoke. Look at how many "arrogant executives" have recently either been canned, or have jumped ship. In most, if not all, cases, those guys have done nothing more than run their respective companies into troubled waters (to say the least), while at the same time taking their "golden parachutes" and more with them when they abandon ship.

Pretty soon, I hope the boards of directors of most companies will realize that most of these so-called "executives" are not any smarter than the average bear, and are basically just full of a bunch of hot air (and full of themselves too).

I think that in light of recent developments, the model of corporate hierarchy will change so as to not put so much power in the hands of a single individual who basically has nothing to lose.<FONT SIZE=1 COLOR="#8e236b"><p align=CENTER>[This message was edited by Tom Olson on 19 March 2002 at 09:43 PM.]</p></FONT>