'Carved Out': Is a remnant of the old-guard music industry ostracizing female executives?

The music industry made promises of change in 2017, when #MeToo swept l entertainment industry, and in 2020, when the murder of George Floyd at the hands of police officers caused a racial toll. But for all the promises of inclusion and millions of dollars pledged for diversity, are things really any different?

Judging by a remnant of the old guard, the coveted "exclude" - a contract of employment that allows executives to continue to work and enjoy secondary pursuits, such as managing an artist - generally remains beyond the reach of women in high-ranking positions.

“Avoiding insider trading,” says one of these female executives. "There are women in the same jobs [as male executives] at the same companies who have been denied exclusions, and that's bad for business."

The "carve out" is not in itself an evil or sexist construct. Often used to sweeten a job offer, it can benefit both parties: a record company may think that one of the acts a potential recruit is managing or otherwise discovering will end up on their roster. Or the incoming frame may have a certain cultural cachet, which is valuable to the label in other ways. “Being culturally active, well-connected and having boots on the pitch” is a big plus for a company trying to tap into youth culture, says major-label veteran who successfully owned and ran a business marketing while employed by major labels.< /p>

More often you see the case of a highly competitive senior A&R hire where the employer ends up to cede the "carve out" and allow the executive to continue to manage. A recent example: Gordan Dillard, who joined Capitol Records as Executive Vice President of A&R and Artist Development in September, continues to manage Doja Cat (signed to RCA).

"A&R has always been the most direct line to the C suite", adds another female executive superior who argues that opportunities in the male-dominated field are fewer and harder to navigate. "For years, women have been [pigeon-holed in] marketing, public relations and artist development – ​​doing the heavy lifting and nurturing behind the scenes, but rarely recognized for their contribution to the artist's success."

The king of carve-outs in recent decades may be Jimmy Iovine, who as as head of Interscope Records in the 1990s went into business with one of the label's artists, Dr. Dre. They eventually sold Beats by Dre to Apple in 2014 for a whopping $3 billion. During her years at Interscope, Iovine also struck deals with many hot producers, allowing them to continue working with artists outside the label, while still occupying an office and having staff in the building. A sidekick to Iovine, Paul Rosenberg, did the same when he continued to manage Eminem (signed to Interscope) while running Def Jam.

However, exceptions are not without risk. For the employer, these are often huge investments that amount to a loss of trust, betting on loyalty and access that may not pay off while the leader builds a separate business at his own expense and in time.

Call it a disturbed marriage, but attorney David Fritz says it's okay. "The deals are based on leverage and timing, but it looks like we could do a better job of positioning a wider range of people, which only benefits the audience as a whole."

Today the music industry is seeing a double digit increase in the number of women in the head of divisions and large companies. Having general managers in place like Jody Gerson, president of Universal Music Publishing Group, Julie Greenwald of Atlantic Records Group, Sylvia Rhone of Epic Records, Michelle Jubelirer of Capitol Records and Ethiopia Habtemariam of Motown Records (which announced yesterday that resigning after 20 years at Universal Music), is a major victory for the prospect, if not the corporate mandates, but a broader scope is still needed.

"It is imperative that we plant the seeds we sow," says Kara DioGuardi, the rare female at the head of a label joint venture...