Warner's Cohen sells 23% of his stake

The music biz still pays, at least if you're in an executive role.

Lyor Cohen, the chairman and chief executive of Warner Recorded Music, North America, sold 23% of his shares in the company, according to a Reuters story.

This apparently netted the exec a cool $6.8 million. After news of the high-profile sale from a principle exec hit the wires, the company's shares had fallen about 10% by late afternoon.

With questions arising as to the long-term viability of recorded music, selling 23% of the company is not always a morale-boosting move. But the story quotes what it says is a statement from Cohen: "This sale reflects nothing more than a normal need for liquid assets for personal expenses, as well as my financial advisor's recommendation that I diversify my portfolio for tax and estate planning,"

The New York Post reported a few months ago that Cohen was spending about $6.8 million for a teardown in the Hamptons.

It's also far from a firesale for Cohen, as he retains ownership of 2.6 million shares. Cohen is reported to have renewed his Warners contract earlier this year through March 2013.

-- Todd Martens

Credit: WMG