Edgar Bronfman, Jr.

• Author: Rand, A. Barry
• Position: Manage Your Assets - Brief Article

Edgar Bronfman, Jr.

Chairman and CEO Warner Music Group

In a time where market fear is greater, there is an aversion to risk and less tolerance of underperformance--cash has become financial comfort food. What's needed is a comfort level of cash earnings and cash resources to enable significant financial flexibility--whether measuring earnings as EBIT, EBITA or operating income to pay down debt, create opportunity and invest in equity holders. With the help of Sarbanes-Oxley following your signature, it's made sure that every CEO is now a CFO. Working capital has become a radar screen for improved performance. Unlike more traditional businesses, the music industry is normally a high cash flow industry, requiring very little working capital. However, in recent years, because of the impact of piracy, the recorded music side of business has seen some decline. With the loss of recorded music revenue cash flow, we not only needed to take out costs across the board but build significant cash reserves to...