Dan Sabbagh, Media Editor
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Elio Leoni-Sceti, the man appointed as chief executive of EMI Music yesterday, said that he would not get involved in finding and signing new artists because he had no experience of working in the industry.
Mr Leoni-Sceti, 42, who joins EMI after 16 years at Reckitt Benckiser, said: “I won't run artists and repertoire [A&R] - it is not my area of competence. I'm not a music expert - we have a lot of competent executives here who can do that.”
Nevertheless, from October 1 Mr Leoni-Sceti, whose total pay package is understood to amount to more than £1 million, will take over the recorded music division. Reporting to him will be Nick Gatfield, who runs the company's American and British labels, and Billy Mann, who will handle the rest of the world after the departure of Jean-François Cecillon.
The arrival of Mr Leoni-Sceti, who will be based in London, means that Guy Hands, EMI's chairman, intends to step back from the day-to-day management of the company owned by Terra Firma, his private equity vehicle. Mr Hands said that he would become non-executive chairman, returning EMI to its traditional structure of having separate chief executives for its recorded music and music publishing divisions. Roger Faxon, a long-serving executive, heads music publishing.
“I'm coming from a branded goods industry - what the music industry needs is an equal understanding of how to build branding around artists,” Mr Leoni-Sceti said.
Reckitt Benckiser was known for spending a relatively small amount on product development, compared with rivals such as Procter & Gamble, but it invested heavily in marketing its cleaning, healthcare and food portfolio.
Mr Leoni-Sceti's last job at the company involved heading its European operations. He held £9 million-worth of shares in the business, according to the most recent company filing.
No details on Mr Leoni-Sceti's pay were made public, although his remuneration is expected to be substantial if EMI recovers.
Mr Hands bought EMI for £3.2 billion last year and since then has been trying to lay off 1,500 staff while contending with threats of artist defections.
The Rolling Stones are expected to leave shortly. Asked what he might say to Sir Mick Jagger to persuade the band to stay, he said that “he hadn't thought of an answer to that” but said of the singer: “I am sure he will make the right decision for him.”
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