Back to EMI and one bit more gossip regarding Jason Flom, the chairman of the major's Capitol US division. With former Island UK chief Nick Gatfield being shipped in to head up all A&R labels in the UK and North America there has been much speculation as to Flom's future at the major, he being unlikely to respond well to a new guy being put in above him in the hierarchy.
There were rumours EMI would try to keep hold of Flom, a well respected US A&R, by offering him his own imprint to run, he having enjoyed the freedom of having his own label before in the form of Lava, subsequently absorbed by Warner Music. But some insiders say that Flom is unlikely to want such an imprint if it sits within Gatfield's empire, and the whole point of bringing the former Island man in is to streamline the complicated, senior exec heavy label structure within EMI Music.
Anyway, most people now seem to think Flom, like Capitol President Lee Trink, will be out the door pretty soon now, but the latest rumour via the Wall Street Journal is that his departure will be expensive for EMI and its Terra Firma owners because his contract forbid a new layer of management being put in place above him – which is what is happening with Gatfield – and as a result he'll be able to demand a large cash sum in return for stepping down and leaving quietly by the back door.
Given Flom's reputation he's likely to walk straight into another fine job in the industry having back pocketed said settlement, meaning the EMI restructure and Gatfield's appointment might work out well for the Capitol boss, who only joined the major back in 2005.