Music industry’s black execs face ‘downsizing’

LOS ANGELES - It is no secret that major-label consolidation has reduced the number of available executive posts across the board in the music industry. Yet despite black music’s impressive gains — R&B/hip-hop represents 24.5 percent of total album sales for 2005 — there are only a handful of African-Americans in key executive roles at the major labels.

That list includes Island Def Jam chairman Antonio “L.A.” Reid, Motown Records CEO Sylvia Rhone, Warner Music Group executive VP Kevin Liles, Sony Urban Music GM Lisa Ellis, Interscope/Geffen/A&M senior VP of urban promotion Step Johnson, Virgin president of urban music Jermaine Dupri and Def Jam Recordings president/CEO Jay-Z.

Can the limited number be attributed solely to consolidation and restructuring? Does it stem from racism? Or are African-American executives themselves at fault for not being as business-savvy as their white counterparts?

Under a microscope
“It just amazes me that there is so much to-do about a startup record label not being profitable,” says Sanctuary Urban president Knowles, whose division has been cited as a chief factor in the parent company’s disappointing half-year results. “It’s unrealistic to think a label is going to be profitable in its first year. Is that a surprise to anyone?”

Knowles’ situation calls to mind that of another high-profile African-American music executive: Reid, the former president/CEO of Arista. He was terminated in 2004 amid reports that the label had lost $100 million in 2003. Reid, however, quickly landed as chairman of Island Def Jam Music Group, now reaping double-platinum-and-counting success with Mariah Carey’s “The Emancipation of Mimi.”

After he succeeded Clive Davis at Arista, the sentiment was that Reid — despite his earlier success with LaFace Records — was more scrutinized than a white executive would have been in the same situation.

“Black people can’t do anything wrong,” rapper Missy Elliott says. The songwriter/producer also operates the Atlantic-distributed label the Gold Mind. “We are under a microscope, and unfortunately, we automatically look like we’re messing up when we’re not. People will always say we don’t know what we’re doing.”

Kedar Massenburg, who exited as Motown president/CEO a year ago, says black executives can start off with a fair chance. “But the expectations of a turnaround can be unrealistic. You just don’t have time on your side. It’s sad that you bear the burden of having to prove yourself past others’ mistakes.”

Barriers still standing
Most of those who agreed to be interviewed for this story stopped short of accusing the music industry of blatant racism. But others acknowledged that there are still some color barriers.

“I want to say it’s not a race thing, but it is to a degree,” Michael Mauldin says. The former president of black music at Columbia Records operates his own Atlanta-based firms, MBA (Mauldin Brand Agency) and Artistic Control Group. He’s also Dupri’s father.

“‘Consolidation,”’ Mauldin continues, “is the word everyone is using. That they are just picking executives from the cream of the crop. But it’s hard for me to believe not as many brothers or sisters are considered the cream of the crop.”

Or as former LaFace Records executive Dorsey James notes, “At the major labels in general, people have a tendency to hire people who look like them and do what they do. At some labels, African-Americans are a necessary evil; at others they’re welcomed and embraced as part of the structure.”

Doug Morris acknowledges James’ assessment. The Universal Music Group chairman/CEO is responsible for bringing Reid and former Elektra Entertainment CEO Rhone into the Universal fold.

“White executives don’t always understand black culture,” Morris says. “It makes them uncomfortable. They would rather go with what they’re familiar with, and that’s a mistake. Diversity makes a company strong.”

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