2 Top Execs Abruptly Dismissed at EMI

In a dramatic shake-up at one of the world’s largest record conglomerates, EMI Music on Friday abruptly ousted two of its most senior executives, sources said.

Charles Koppelman, chairman of the British company’s North American division, and Terri Santisi, the division’s executive vice president, were dismissed as part of a restructuring plan that will probably be announced Tuesday when EMI unveils its annual report, sources said. EMI, home to such stars as Garth Brooks and Janet Jackson, is expected to report an increase in worldwide revenue, despite plunging to last place during 1996 in the U.S. market.

Koppelman and Santisi, who reportedly have more than four years left on their contracts, could not be reached for comment.

A spokesman for EMI Music declined comment Friday about the dismissal of the two executives, who were hired five years ago to rejuvenate EMI’s North American operation. The spokesman also declined comment on speculation within the company that the duties of Ken Berry, president of EMI’s international sector, will be expanded to oversee operations in North America--at least on an interim basis.

Ironically, the corporate overhaul comes at a time when EMI has dramatically improved its fortunes in the U.S. market, leaping to third place in current year-to-date album sales.

EMI’s Virgin label currently dominates the nation’s pop charts with the Spice Girls, and Capitol Records has a top 20 hit with Meredith Brooks plus an anticipated blockbuster from the recently released Foo Fighters album.

Koppelman, a shrewd New York music veteran with a three-decade track record of pop hits, was dogged by a reputation for flamboyance and self-promotion even before taking over EMI’s North American division in 1992. The 58-year-old former song plugger--whose resume is riddled with a string of short-fused success stories, including Vanilla Ice and Wilson Phillips--joined EMI shortly after selling the corporation his own SBK Records label.

Within months after taking the post, Koppelman cleaned house at Capitol Records, forcing the exit of West Coast veterans Joe Smith and Hale Milgrim along with dozens of staff members and artists.

Koppelman hired young talent scout Gary Gersh to run the historic Capitol label and also brought in promotion whiz Daniel Glass and talent scout Davit Sigerson to revive the lagging EMI label.

During his tenure, Koppelman was praised for developing unique marketing strategies that helped bolster sales of the company’s deep Beatles and Sinatra catalogs. But his much-hyped “Love Collection” compilation bombed badly last year, costing EMI millions of dollars in returns.

Santisi, a former Wall Street accounting specialist who negotiated the mergers and acquisitions of several record and music publishing companies, joined EMI at the urging of Koppelman.

Santisi, 43, one of the highest-ranking female executives in the music business, played a crucial role in helping Koppelman overhaul the company’s North American division and restructure its distribution and catalog sectors.

It is unclear why Koppelman and Santisi were let go, but tension has been mounting between Koppelman and other top players in EMI’s corporate hierarchy since the company went public last year.

There has been much speculation that EMI Music parent Thorn-EMI intends to sell the record division--a rumor repeatedly denied by Thorn-EMI Chairman Colin Southgate.

Sources said Seagram-owned Universal and Walt Disney Co. are interested in purchasing EMI, but not unless the $9-billion price tag drops significantly.

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Hoping and Playing

EMI was ranked last in 1996 in current album sales in the United States. The company rebounded in recent months, thanks to hits by the Spice Girls and Meredith Brooks, moving to No. 3 in year-to-date market share. Figures do not include catalog sales.

Warner Music: 1997--17.3%; 1996--21.0%

Universal/MCA: 1997--14.9%; 1996--11.2%

EMI: 1997--13.5%; 1996--8.2%

BMG: 1997--13.2%; 1996--12.4%

PolyGram: 1997--11.8%; 1996--11.4%

Sony: 1997--11.6%; 1996--14.4%

Independents: 1997--17.7%; 1996--21.4%

* Source: Soundscan